JDS Uniphase Sheds 10% on Q3 Loss and Weak Guidance

JDS Uniphase posted a Q3 loss of $14.2 million, or -$0.07/share due to higher stock options expenses, after earning $3.7m ($0.02/share) last year. Excluding certain items, JDSU earned $0.06/share, but missed analysts' forecast of $0.12. Sales of $361.7m (+15% y/y), however, beat the Street's expectation of $347m. Shares of JDSU gained 2.6% to $16.64 during normal trading, but tanked 9.9% to $15.00 after-hours on volume of 1.8m. JDSU's CEO commented: "In terms of revenue, JDS Uniphase’s third quarter was stronger than expected, with a much smaller than anticipated seasonal decline, and year-over-year growth of 15%," noting also that it was the first time in more than five years the company achieved positive free cash flow. JDSU has posted a net loss in 30 of the past 32 quarters. JDSU said it expects Q4 sales between $325m - $345m, short of analysts' forecast of $354m.

Sources: JDS Uniphase F3Q07 (3/31/07) Earnings Call Transcript, Press release [pdf], Bloomberg
Commentary: Recent Earnings Strength Tied to International Exposure • Optical Vendors: Cornering The Commodity Market • Fiber Optics Market: Benefiting from the Online Video Trend
Stocks/ETFs to watch: JDS Uniphase Corp. (JDSU). Competitors: Avanex (AVNX), Finisar Corp. (FNSR), Ciena Corp. (CIEN). ETFs: Broadband HOLDRs (BDH)

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