Advertisement
News
Advertisement

JDSU swings to profit; Shares fall on forecast

Thu, 05/04/2006 - 7:29am

Copyright 2006 MarketWatch.com Inc.
All Rights Reserved
MarketWatch
May 3, 2006 Wednesday 6:10 PM EST
By Jeffry Bartash, MarketWatch
From Lexis Nexis

WASHINGTON (MarketWatch) -- JDSU Corp. said late Wednesday it swung to a profit for its fiscal third quarter, helped by a one-time investment gain, while revenue nearly doubled thanks to an acquisition.

However, the company's shares fell more than 7% in late trading after it issued a disappointing forecast for the current quarter.

The maker of fiber-optic products, formerly known as JDS Uniphase, posted a net profit of $3.7 million, or break even on a per-share basis, compared to a loss of $38.6 million, or 3 cents a share, a year ago.

After stripping out one-time items like a $37.7 million gain from the sale of investments, JDSU said it would have lost $2.8 million, also break even per share, to meet the average estimate of analysts polled by Thomson First Call.

Revenue for the quarter ended March 31 soared 89% to $314.9 million, topping analyst expectations of $313.1 million. Sales were boosted by JDSU's acquisition of Acterna, a maker of test equipment for phone and cable networks.

In the past few years, JDSU has sought to reinvigorate itself after a prolonged downturn. The company has revamped operations, pursued growth through acquisitions and shifted manufacturing to China. JDSU is also looking to develop more optical products for consumer applications and industrial users.

Chief Executive Kevin Kennedy said the company is well positioned to benefit as more phone companies and cable providers roll out services that combine voice, Internet and cable TV plans.

In addition, "ongoing manufacturing consolidation and cost-reduction programs continue to positively impact our results," Kennedy said in a written statement.

Shares drop on weak forecast

For the fiscal fourth quarter ending June 30, JDSU forecast revenue ranging from $302 million to $322 million, below the average analyst estimate of $316.5 million.

That sent its shares (JDSU) down 28 cents to $3.36 in after-hours trading. The stock had risen 3.4% to $3.64 during the regular session.

Topics

Advertisement

Share This Story

X
You may login with either your assigned username or your e-mail address.
The password field is case sensitive.
Loading