No turnaround in sight for JDSU
Sales for the quarter showed a further decline, 63% down on the year-ago quarter to $221.7 million and 16% down on the previous quarter. The sales figures came as no surprise and were in line with expectations.
For the year ending June 30, 2002, the company posted a net loss of $8.69 billion. In the 2001 fiscal year JDSU reported a $56.12 billion loss, the largest annual loss in US corporate history.
The company issued guidance for the current quarter stating that sales were likely to show a further decline at $200-210 million. As the New York Stock Exchange closed on July 25, JDSU’s share price had fallen by almost 16% to $2.53. JDSU also reiterated that it was continuing with its restructuring program in an effort to cut costs and announce that it was planning further job cuts to save another $160 million annually. In April, JDSU said it would cut about 2000 more jobs, or 20% of its 10,000 staff by early 2003.
