JDS Uniphase loss widens due to charges

Wed Feb 1, 2006 7:29 PM ET

(Adds comment on Canadian assets)

SAN FRANCISCO, Feb 1 (Reuters) - JDS Uniphase Inc. (JDU.TO: Quote, Profile, Research) (JDSU.O: Quote, Profile, Research) on Wednesday posted a wider quarterly net loss due to charges despite a rise in revenue that was boosted by a recent acquisition of closely held Agility Communications.

Excluding restructuring and other items, JDS Uniphase said it had a loss of $3.7 million, or nil per share -- matching the average Wall Street estimates. Shares fell 2.8 percent after hours.

JDS Uniphase, based in San Jose, California, said its net loss for the second fiscal quarter, ended Dec. 31, widened slightly to $42.1 million, or 3 cents per share, from a net loss $41.0 million, or 3 cents per share, a year earlier.

Net revenue climbed to $312.9 million from $180.5 million, just topping the average Wall Street expectation for $312.6 million, according to Reuters Estimates.

Optical communications revenue was $109.6 million and accounted for about 35 percent of net revenue. Communications revenue was $146.0 million, or about 46 percent of total revenue, and commercial and consumer revenue represented $59.4 million, or 19 percent of total revenue.

Revenue in the current quarter is expected to be $304 million to $321 million, the company said in a statement. That falls short of $329 million, the high end of revenue expectations among analysts polled by Reuters Estimates.

The consensus analyst expectation for JDS Uniphase in the current quarter is nil per share on revenue of $309 million, according to Reuters Estimates.

CANADIAN ASSETS

The company also said in a filing that it has received an expression of interest from a potential buyer of some of its assets located in Ottawa, Canada.

JDS Uniphase did not name the buyer and a company official declined to comment.

The company in November said it would hand over product manufacturing at its Ottawa site to contract manufacturers as part of a larger restructuring. At the time the company said total restructuring charges would be less than $20 million.

Shares of JDS Uniphase rose 4 cents, or 1.3 percent, to close at $3.16. In extended trade, they fell to $3.10. In the past 12 months, the stock is up nearly 44 percent, based on Wednesday's closing price.

(With additional reporting by Robert MacMillan in New York)

© Reuters 2006. All Rights Reserved.