Yesterday, after market close, JDS Uniphase Corp. ( JDSU - Analyst Report ) declared strong financial results for the second quarter of fiscal 2012. The company, which manufactures broadband and optical networking components for the telecom industry, generated solid top and bottom-line growth. As a result, in the after market trade on NASDAQ, stock price of JDS Uniphase was up by 80 cents (6.09%) to $13.93.

Optical Networking component sector is highly competitive. The company competes fiercely with several players, such as Finisar Corp. ( FNSR - Snapshot Report ) , Oplink Communications Inc. ( OPLK - Snapshot Report ) , Opnext Inc. ( ) , and Oclaro Inc. ( OCLR - Snapshot Report ) , to name a few. Despite competition, JDS Uniphase’s differentiated products gained market traction.

Though quarterly net revenue was $412.8 million, down 12.8% year over year, it surpassed the Zacks Consensus Estimate of $391 million. On a GAAP basis, quarterly net loss was $10.2 million or 4 cents per share compared with a net income of $23.6 million or 10 cents per share in the year-ago quarter. However, quarterly adjusted (excluding special items) EPS was 6 cents, easily beating the Zacks Consensus Estimate of 4 cents.

Gross margin in the reported quarter was 42.4% compared with 45.2% in the year-ago quarter. In the second quarter, operating expenses were $176.6 million, down 2% from the prior-year quarter. However, quarterly operating loss was $1.6 million compared with an operating income of $33.6 million in the prior-year quarter. Total segment operating income in the previous quarter was $39.5 million compared with $73.1 million in the prior-year quarter.

At the end of the second quarter of fiscal 2012, JDS Uniphase had $722.6 million of cash & marketable securities and $295.7 million of outstanding debt on its balance sheet compared with $695.7 million of cash & marketable securities and $285.8 million of outstanding debt on its balance sheet at the end of fiscal 2011. At the end of the reported quarter, debt-to-capitalization ratio was 0.22 compared with 0.21 at the end of fiscal 2011. JDS Uniphase generated $45 million of cash from operations in the second quarter of fiscal 2012.

Revenue Segments

In the second quarter of fiscal 2012, Communications Test and Measurement segment accounted for $196.2 million of revenue, down 15.2% year over year. Communications and Commercial Optical Products segment generated $180.3 million, up 7.3% year over year. Within this segment, Optical Communications revenue was $138.1 million, down 18% from the prior-year quarter and Commercial Lasers business revenue was $25.1 million, up 10.6% from the prior-year quarter. Advanced Optical Technologies segment generated the remaining $53.7 million revenue, down 1.8% year over year.

Geographic Segments

In the second quarter of fiscal 2012, the Americas segment accounted for 51% of total revenue, the EMEA segment was 24%, and the rest 25% was generated from the Asia-Pacific region.

Future Financial Outlook

For the third quarter of fiscal 2012, management expects the company’s non-GAAP revenue to be within the range of $410 million - $425 million.