JDSU Announces Fiscal 2009 Fourth Quarter and Year End Results

Wednesday, August 19, 2009 4:05 PM

MILPITAS, CA -- (Marketwire) -- 08/19/09 -- JDSU (NASDAQ: JDSU) (TSX: JDU) today reported results for its fourth fiscal quarter and year ended June 27, 2009.

Net revenue for the fourth fiscal quarter was $276.1 million and the net loss was $(59.5) million, or $(0.28) per share, which included $18.5 million of restructuring charges. This compares to net revenue of $390.3 million and a net loss of $(29.8) million or $(0.13) per share for the fourth fiscal quarter of 2008.

For the full fiscal year 2009, net revenue of $1,294.4 million decreased 15.4% from $1,530.1 million for fiscal 2008. The net loss for the year of $(866.4) million, or $(4.02) per share, increased from a net loss of $(21.7) million, or $(0.10) per share, for fiscal 2008. Fiscal year 2009 included impairments, primarily for goodwill and intangibles, totaling $759.8 million and restructuring and related charges totaling $38.7 million. Fiscal year 2008 included impairments, primarily for goodwill and intangibles, totaling $47.7 million and restructuring and related charges totaling $6.7 million.

On a non-GAAP basis, net loss for the quarter was $(2.3) million or $(0.01) per share. This compares with non-GAAP net income of $15.5 million or $0.07 per share for the fourth fiscal quarter of 2008. On a total year basis, fiscal 2009 non-GAAP net income was $39.0 million or $0.18 per share, which compares to $114.9 million or $0.50 per share for fiscal 2008.

On an adjusted EBITDA basis (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) the Company reported $12.1 million for the quarter, which compares to $25.1 million in the fourth fiscal quarter of 2008. For the total year, adjusted EBITDA was $94.9 million which compares to $142.9 million for fiscal 2008.

"We successfully navigated through the global economic turbulence that took place in fiscal 2009," said Tom Waechter, JSDU's President and Chief Executive Officer. "We begin fiscal 2010 with a stronger balance sheet, an improved business model and a stronger product portfolio, well positioned for growth when the economy rebounds."

Financial Overview -Fourth Fiscal Quarter Ended June 27, 2009

--  Fourth quarter non-GAAP net revenue of $277.0 million decreased 1.3%
    when compared to the previous quarter and decreased 29.1% when compared
    to the fourth quarter of fiscal 2008.
--  Non-GAAP gross margins were 42.3% compared to 41.8% for fiscal Q3 2009
    and 40.9% for fiscal Q4 2008.
--  Non-GAAP operating margins were (1.4)% compared to (2.8)% in fiscal Q3
    2009 and 2.2% in fiscal Q4 2008.
--  Communications Test and Measurement fourth quarter revenue of $135.5
    million increased 4.9% from the previous quarter and decreased 20.5%
    compared to the fourth quarter of fiscal 2008. Fourth quarter revenue
    from this segment represented 48.9% of total non-GAAP net revenue.
--  Fourth quarter Communications and Commercial Optical Products revenue
    of $90.7 million decreased 9.8% when compared with the previous quarter
    and 45.8% when compared to the fourth quarter of fiscal 2008.  Fourth
    quarter revenue from this segment represented 32.8% of total non-GAAP
    net revenue.
    --  Fourth quarter Optical Communications revenue of $79.3 million
        decreased 10.9% compared with the previous quarter and 45.3%
        compared to the fourth quarter of fiscal 2008.
    --  Our Commercial Lasers business reported revenue of $11.4 million,
        down 0.9% from the previous quarter and 48.4% from the fourth
        quarter of fiscal 2008.
--  Fourth quarter revenue from the Advanced Optical Technologies segment
    was $50.8 million, down 0.4% from the previous quarter and down 4.0%
    compared to the fourth quarter of fiscal 2008.  Revenue from this
    segment represented 18.3% of total non-GAAP net revenue.
--  Americas' customers represented 50.6% of total non-GAAP net revenue
    for the quarter. European and Asia-Pacific customers represented 28.7%
    and 20.7% of total non-GAAP net revenue, respectively.
--  During the fiscal year, the Company incurred impairments primarily for
    goodwill and intangibles totaling $759.8 million due to the adverse
    impact of the current macroeconomic business environment on the
    Company's financial outlook and the overall decline in equity values
    resulting in a decline in our own market capitalization.
--  At the beginning of the quarter we transferred our Shenzhen, China
    manufacturing operations to and entered into a supply agreement with
    Sanmina Corporation.
--  The Company held $695.5 million in total cash and investments and was
    free cash flow positive $9.7 million for the fourth quarter.

Business Outlook

For the first quarter of fiscal 2010, ending October 3, 2009, the Company expects revenue to be in the range of $283 to $300 million.

Conference Call

The Company will discuss these results and other related matters at 2:00 p.m. Pacific Time on August 19, 2009 in a live webcast, which will also be archived for replay on the Company's website at www.jdsu.com/investors. This press release is being furnished as a Current Report on Form 8-K with the Securities and Exchange Commission, and will be available at www.sec.gov.

About JDSU

JDSU (NASDAQ: JDSU) (TSX: JDU) enables broadband and optical innovation in the communications, commercial and consumer markets. JDSU is a leading provider of communications test and measurement solutions and optical products for telecommunications service providers, cable operators, and network equipment manufacturers. JDSU is also a leading provider of innovative optical solutions for medial/environmental instrumentation, semiconductor processing, display, brand authentication, aerospace and defense, and decorative applications. More information is available at www.jdsu.com.

Forward-Looking Statements

This press release contains, and the discussions in our subsequent conference call will contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include: (i) any anticipation or guidance as to future financial performance, including future revenue, gross margin, operating expense, operating margin, EBITDA, cash flow and other financial metrics; and (ii) the Company's beliefs regarding the purpose, usefulness and efficacy of non-GAAP results and the measures and items the Company includes in the same, as well as any benefits to investors the Company believes its non-GAAP measures provide. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected.

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