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JDS warning drags down its stock

Sun, 09/22/2002 - 8:00pm
Susan Rush

JDS Uniphase stock price was teetering near its 52-week low during morning trading, following news that the fiber-optic gear maker cut its first-quarter forecast.

Demand for optical networking gear continues to wane, forcing JDS to trim its first-quarter outlook. The company expects to record revenue in the range of $190 million to $200 million, down from an earlier forecast calling for sales between $200 million and $210 million.

JDS expects to post a pro forma net loss of between 6 cents and 8 cents a share, which is in line with its earlier guidance. As previously stated, the company expects to record between $10 million and $20 million in canceled contracts in the first quarter.

The revised outlook comes on the heels of last week's announcement that the company is reducing its staff by 900 employees. At the end of June, the company had 9,222 employees, down from a high point of more than 28,000 in March 2001.

For the fourth quarter ended June 30, JDS posted revenue of $222 million, a 63 percent drop from the $601 million recorded in the same quarter a year ago.

As of 11:44 a.m. EDT, JDS shares were off 5 percent at $2.03. During the same time period shares of Nortel Networks, a key JDS customer, were down nearly 7 percent to 71 cents.

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