+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
 
News Article

JDSU increases optical communication sales

Sales from JDS Uniphase's optical communication business are up by nearly one-quarter year-on-year, but these revenue increases have made little impact on this division's gross margin.

JDS Uniphase (JDSU) claims that strengthening long-haul and metro markets are driving increased sales of its optical communications products.

This sector of JDSU's business contributed $106.3 million to the company's fourth fiscal quarter revenue, a rise of 5% sequentially, and up 24% year-on-year.

And the recent sales figure only includes a partial contribution from the company's cable TV business that delivered an annual revenue of around $20 million and was sold to Emcore during the quarter (see related story).

Increased sales of optical communications products have not significantly impacted the operating losses from this division. The recent quarter produced a loss of $11.1 million, an improvement of only $0.6 million year-on-year.

However, JDSU says that gross margins will improve now that 60% of its optical communications products are now manufactured outside North America.

The company produces some of its optical components at its Shenzhen facility in China, but it says that it will take several further quarters before manufacturing from this plant will positively impact gross margin.

The company posted revenue of $170.9 million for the fourth fiscal quarter, and a loss of $145.7 million which included a $62.7 million impairment charge associated with the optics and display business.

To cut costs, JDSU has reduced its workforce from its commercial and consumer segment by 130, and will be relocating its headquarters from San Jose, CA, to nearby Milpitas.

The company expects revenue for the next quarter to be in the range $240 million to $260 million.

Optical communications and commercial and consumer segments are predicted to contribute $163 million to $173 million, with remaining sales generated by the company's test and measurement division that was created by the acquisition of Acterna on August 3.

JDSU refused to provide guidance for the company's profit and gross margin for the next quarter.

×
Search the news archive

To close this popup you can press escape or click the close icon.
×
Logo
×
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: