Communication equipment maker JDS Uniphase Corp. (JDSU, JDU.TO) reported Wednesday a loss for the third quarter that widened from last year, reflecting significantly lower margins. Adjusted earnings per share and quarterly revenues missed analysts' expectations. The company also provided revenue forecast for the fourth quarter, below Street view.
"The March quarter experienced delayed carrier capex budget releases resulting in lower revenue than expected in our Communications Test and Measurement and Optical Communications businesses. Despite the revenue challenges, the JDSU team delivered solid results in most areas of the business," President and CEO Tom Waechter said in a statement.
The Milpitas, California-based company reported a net loss of $28.0 million or $0.12 per share for the third quarter, wider than $17.4 million or $0.08 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was $24.1 million or $0.10 per share, compared to $24.6 million or $0.10 per share in the year-ago quarter.
On average, 14 analysts polled by Thomson Reuters expected earnings of $0.11 per share for the quarter. Analysts estimate typically excludes one-time items.
Net revenue for the quarter edged up 0.5 percent to $405.3 million from $403.3 million in the same quarter last year, but missed twelve Wall Street analysts' consensus estimate of $417.28 million.
Operating margin for the quarter contracted 370 basis points to negative 5.3 percent from the year-ago quarter as gross margin dropped 330 basis points to 38.3 percent from last year.
Communications test and measurement revenue declined 2.0 percent to $174.2 million, while revenue from communications and commercial optical products grew 3.5 percent to $179.2 million from last year. Meanwhile, optical security and performance products revenue decreased 1.0 percent to $51.9 million from a year ago.
Americas revenues represented 47.9 percent of total net revenues, EMEA revenues represented 23.5 percent and Asia-Pacific revenues represented 28.6 percent for the quarter.
Looking ahead to the fourth quarter, the company expects revenues to be in a range of $420 million to $440 million. Street is currently looking for revenues of $448.39 million.
JDSU closed Wednesday's regular trading session at $12.52, down $0.98 or 7.26% on a volume of 0.35 million shares. However, the stock gained $0.31 or 2.48% in after-hours trading.
For comments and feedback: editorial@rttnews.com