JDS Expects Longer Road to Recovery

JDS Uniphase Corp., a leading maker of optical networking components, reaffirmed its gloomy fiscal second-quarter sales outlook and predicted more bad news.

Sales for the three months ending Dec. 29 probably will be 10% to 15% below the $329 million reported in its fiscal first quarter, the company said. Analysts were expecting second-quarter sales of $286.4 million, or a 12.9% drop from the first-quarter numbers, according Thomson Financial/First Call.

Last year, San Jose-based JDS reported second-quarter revenue of $925 million.

The company also said it expects to bottom out in the third quarter with sales up to 15% below the second quarter. It predicts a modest initial recovery.

JDS shares closed down 58 cents, or 5.5%, to $9.95 on Nasdaq.