Back to top

Analyst Blog

We reiterate our long-term Neutral recommendation on JDS Uniphase Corp. (JDSU - Analyst Report). The company posted mixed financial results for the first quarter of fiscal 2013. Although the revenue fell below the Zacks Consensus Estimate, net income topped the same. The company’s newly launched products accounted for 57% of its total revenue in core network market. However, overall book-to-bill ratio remained less than 1.0 throughout the quarter. We remain concerned regarding the delay in carrier order due to a volatile global macro-economy.

Consolidation trend in the optical gear manufacturing industry as well as in the telecom carrier industry may act as a spoiler for the optical component suppliers, such as JDS Uniphase. Nevertheless, its newly launched differentiated products, which are gaining encouraging market traction coupled with acquisitions of Dyaptive and GenComm may become long-term positives for the company.

Next-generation 4G Long-Term Evolution (LTE) networks became a major growth driver for JDS Uniphase. The company offers an innovative LTE test solution, which encompasses end-to-end, real-time tracing, data assurance, and OSS to derive the performance and revenue potential of LTE.

Meanwhile, the optical component industry is going through a downtrend. Major telecom carriers are making inventory correction and this scenario is expected to continue till the end of 2012. The company’s closest rivals, such as Ciena Corp. (CIEN - Analyst Report), Finisar Corp. (FNSR - Snapshot Report), and Oclaro Inc. (OCLR - Snapshot Report) are all suffering from industry headwinds. Several industry players estimated that demand from the largest emerging market of China will not meet expectations. JDS Uniphase is highly dependent on China since the developed western world is still reeling under economic headwinds.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CITI TRENDS… CTRN 21.53 +5.49%
GTT COMMUNI… GTT 11.65 +4.11%
ALLERGAN IN… AGN 161.82 +3.99%
WILLIAMS(C)… CWEI 117.06 +3.73%
FIRSTSERVIC… FSRV 54.81 +2.62%