JDS Uniphase Q2 Results Top Estimates, Guides Q3 Revenue In Line

(RTTNews) - Communication equipment maker JDS Uniphase Corp. (JDSU, JDU.TO) reported Tuesday a profit for the second quarter that doubled from last year, reflecting improved margins and revenue growth. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided revenue forecast for the third quarter, in line with Street view.

"Our fiscal second quarter results exceeded our guidance expectation with gross margin improvements across all three segments. We are pleased with the performance of our organic business, the progress of our continuing investments in new offerings which align with customer requirements and market trends, and our continuing M&A strategy to expand our product portfolio into mobility and service enablement," President and CEO Tom Waechter said in a statement.

The Milpitas, California-based company reported net income of $8.8 million or $0.04 per share for the second quarter, higher than $4.1 million or $0.02 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $45.3 million or $0.19 per share, compared to $42.3 million or $0.18 per share in the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.14 per share for the quarter. Analysts estimate typically excludes one-time items.

Net revenue for the quarter rose 4.2 percent to $447.6 million from $429.4 million in the same quarter last year, and topped fifteen Wall Street analysts' consensus estimate of $433.70 million.

Operating margin for the quarter expanded 180 basis points to 4.4 percent from the year-ago quarter as gross margin improved 90 basis points from last year.

Network and service enablement revenue was relatively flat with last year at$195.0 million, while revenue from communications and commercial optical products grew 6.6 percent to $198.0 million from last year. Optical security and performance products revenue also increased 13.3 percent to $54.6 million from a year ago.

Looking ahead to the third quarter, the company expects adjusted revenues in a range of $420 million to $440 million. Street is currently looking for revenues of $425.92 million.

"We believe JDSU is well-positioned to leverage our technical leadership in new markets in network infrastructure, commercial lasers and anti-counterfeiting in calendar 2014," Waechter added.

JDSU closed Thursday's regular trading session at $12.72, up $0.67 or 5.56% on a volume of 10.60 million shares. The stock gained a further $0.58 or 4.56% in after-hours trading.