Growing JDS Uniphase Posts Higher-Than-Expected Profit
White-hot demand for fiber-optics parts for high-speed networks helped JDS Uniphase Corp. post a higher-than-expected profit for its fiscal fourth quarter Wednesday.
JDS, the world’s largest supplier of components for fiber-optic networks, reported net income of $114 million, or 14 cents a share, up dramatically from $41 million, or 6 cents a share. Revenue nearly tripled to $524 million from $192 million.
Analysts on average expected earnings of 12 cents, according to First Call/Thomson Financial. The year-earlier figures reflect the combined pro forma profit of JDS Fitel and Uniphase Corp., which merged in June 1999 to form JDS Uniphase.
“The biggest challenge is coping with the incredible growth,” Chief Executive Jozef Straus said.
JDS Uniphase is expanding as quickly as it can to keep pace with a burgeoning market that shows no signs of slowing.
“Demand for more bandwidth will continue unabated,” Straus said. “Service providers are putting increasing pressure on system manufacturers to deliver low-cost, high-capacity solutions.”
The company has more than doubled sales in each of the last four quarters by snapping up rivals and boosting production to keep up with demand from fiber-optic equipment makers such as Lucent Technologies Inc.
The company, which closed its acquisition of E-Tek Dynamics Inc. on June 30, said it expects quarter-over-quarter sales growth in the high-teen percentage, up from earlier forecasts of 15% growth.
JDS Uniphase said it has set a mandate to boost its production by four times every 18 months, a goal it pursues with expansion, automation, outsourcing and improved manufacturing processes.
San Jose-based JDS Uniphase also recently announced plans to buy rival SDL Inc. in a stock deal valued Wednesday at about $47 billion.
Shares in JDS, scheduled to be added to the S&P; 500 index after the market closed Wednesday, added $5.75 to close at $135.94 on Nasdaq.
At a Glance
Other earnings, excluding one-time gains or charges unless noted, include:
TECHNOLOGY
* Accelerated Networks Inc., a phone-equipment maker whose shares have more than doubled since an initial public offering last month, said its second-quarter loss widened to $8.29 million, or 19 cents a share, from $3.81 million, or 10 cents, a year ago. The loss was deeper than the 17 cents analysts expected. Sales surged sevenfold to $8.77 million from $1.25 million.
* Lam Research Corp., which makes tools that build circuits on semiconductors, said fiscal fourth-quarter profit rose more than fivefold to $61.7 million, or 45 cents a share, a penny better than forecasts, from $11.3 million, or a split-adjusted 9 cents, a year ago. Sales climbed 77% to $374.2 million.
* LookSmart Ltd., an Internet-search service, said its second-quarter loss narrowed to $8.4 million, or 9 cents a share, from $9.5 million, or 11 cents, as revenue nearly tripled to $27.3 million from $10.5 million. Analysts expected a deeper loss of 14 cents.
* MicroStrategy Inc. reported a second-quarter loss of $43.1 million, or 54 cents a share, versus a loss of $3,000, or break-even on a per-share basis a year ago, as sales rose 24% to $50.3 million. The maker of data-delivery software said results were hurt by publicity over an investigation of its accounting problems.
* NBC Internet Inc., which groups the online properties of NBC, said its second-quarter loss narrowed to $49.5 million, or 81 cents a share, from $24.9 million, or $1.49 cents a year ago, boosted by a restructuring designed to strengthen its brand. Analysts expected a loss of 85 cents. Revenue nearly doubled to $30.5 million.
* Nextlink Communications Inc., a telephone and Internet company controlled by cellular pioneer Craig McCaw, reported a second-quarter loss of $254,396, or 83 cents a share, versus a loss of $122.8 million, or 56 cents, a year ago. Analysts expected a deeper loss of 90 cents. Revenue more than doubled to $140.6 million from $60.7 million as the company continued deploying a network serving businesses in North America and eventually in Europe.
* VeriSign Inc., which provides Internet security and registration services, reported second-quarter net income of $10.3 million, or 7 cents a share, contrasted with a net loss of $152,000, or break-even on a per-share basis, in the year-earlier period. Sales nearly quadrupled to $70.3 million from $18.7 million a year ago. The latest results exclude acquisition costs and results of Network Solutions Inc., which VeriSign acquired in June.
OTHER INDUSTRIES
* Anheuser-Busch Cos. said second-quarter profit rose 11% to $477.7 million, or $1.04 a share, 2 cents better than forecasts, with help from price increases for its beers. Sales rose 6% to $3.27 billion. The company, which also operates theme parks, also said it’s splitting its stock 2 for 1 and increasing its quarterly dividend 10% to 33 cents a share.
* Halliburton Co. said earnings slipped 5.5% to $52 million, or 12 cents a share, because big oil and natural gas companies spent less on its exploration and production products. Sales fell 6.1% to $2.89 billion. Halliburton Chief Executive Dick Cheney is leaving the company after GOP presidential candidate George W. Bush chose him as a running mate.
* Hershey Foods Corp.’s profit dropped 20% to $40 million, or 29 cents a share, as the candy maker’s sales slipped 2% to $836.2 million. Hershey said distribution costs and a decline in sales to retailers from a late Easter holiday hurt results. The earnings matched analysts’ consensus forecast, which had been reduced from 35 cents at the start of the quarter, according to First Call/Thomson Financial.
* Tommy Hilfiger Corp.’s earnings plunged 75% to $9.7 million, or 10 cents a share, as sales fell 4.6% to $399.9 million. Hilfiger has had to cut prices since fall to clear out excess inventory as demand lagged for its clothing sold in department stores. The latest results beat analyst forecasts of 8 cents.
* Interpublic Group of Cos., the world’s second-biggest advertising company, said second-quarter profit rose 15% to $171.9 million, or 56 cents a share, as expected, on a 15% jump in revenue to $1.42 billion.
* Minnesota Mining & Manufacturing Co., whose 50,000 products range from Post-It Notes to electronic circuitry, said second-quarter profit rose 12% to $470 million, or $1.18 a share, helped by higher sales overseas and cost-cutting. The results were 2 cents better than forecasts. Revenue rose 9.3% to $4.22 billion.
* Oxford Health Plans Inc. reported a profit of $44.5 million, or 41 cents a share, for the second quarter, well beyond expectations of 27 cents, as it raised prices and cut costs. In the year-ago quarter, Oxford lost $2.0 million, or 16 cents. Revenue fell 3.6% to $1.01 billion.
* RadioShack Corp.’s earnings rose 22% in the second quarter to $75.4 million, or 38 cents a share, 2 cents better than estimates, as sales grew 15% to $1.02 billion.
* True North Communications Inc., an advertising and public relations firm, said second-quarter earnings rose 29% to $27.1 million, or 54 cents a share, 2 cents better than forecasts, as it added new accounts from large companies. Revenue grew 10% to $375.1 million.
* TRW Inc. said its second-quarter profit rose 9% to $166.9 million, or $1.33 a share, on improved profit growth in missile defense systems and automotive segments and increased IT government business. The results matched analyst expectations. Sales fell 6.5% to $4.48 billion, reflecting the sale of a diesel-engine business.
