JDS Uniphase Q3 Results Miss Estimates, Guides Q4 Below View

(RTTNews) - Communication equipment maker JDS Uniphase Corp. (JDSU, JDU.TO) reported Wednesday a net loss for the third quarter that narrowed from last year, reflecting improved margins and revenue growth. Both adjusted earnings per share and quarterly revenues missed analysts' expectations. The company also provided earnings and revenue forecast for the fourth quarter, below Street view.

"Despite lower-than-expected revenue in the third quarter, we grew three percent year-on-year, and stayed within our operating margin guidance range through continued strength in gross margins and effective cost management," President and CEO Tom Waechter said in a statement.

The Milpitas, California-based company reported a net loss of $1.5 million or $0.01 per share for the third quarter, narrower than $28.0 million or $0.12 per share in the prior-year quarter.

Excluding items, adjusted net earnings for the quarter was $23.4 million or $0.10 per share, compared to $24.1 million or $0.10 per share in the year-ago quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.11 per share for the quarter. Analysts estimate typically excludes one-time items.

Net revenue for the quarter grew 3.1 percent to $418.0 million from $405.30 million in the same quarter last year, but missed fifteen Wall Street analysts' consensus estimate of $431.70 million.

Operating margin for the quarter expanded 250 basis points to a negative 2.8 percent from the year-ago quarter as gross margin improved 590 basis points from last year.

Network service and enablement revenue edged down 1.1 percent from last year to $1172.3 million, while revenue from communications and commercial optical products grew 8.6 percent to $194.6 million from last year. Optical security and performance products revenue edged down 1.5 percent to $51.1 million from a year ago.

"Our fiscal third quarter revenue was impacted by later-than-expected carrier orders, but we are encouraged by a strong bookings performance and believe positive industry trends will drive improved top-line growth in our fiscal fourth quarter," Waechter added.

Looking ahead to the fourth quarter, the company expects adjusted earnings in a range of $0.10 to $0.14 per share, on projected adjusted revenues between $425 million and $445 million. Street is currently looking fourth-quarter earnings of $0.17 per share, on quarterly revenues of $459.04 million.

JDSU closed Wednesday's regular trading session at $12.67, down $0.20 or 1.55% on a volume of 6.09 million shares. The stock lost a further $0.76 or 6.00% in after-hours trading.