JDS Uniphase lowers revenue guidance

Citing continued weakness in its telecommunications markets, JDS Uniphase today revised its sales outlook for first quarter 2002. It is now predicting net sales ranging from $190 million to $200 million, compared with previous guidance of $200 million to $210 million.

Contract cancellation revenue for the quarter, which is included in the company’s guidance, is expected to range between $10 million and $20 million, which is consistent with previous guidance.

Despite the expected decline in sales, JDS Uniphase said it still expects to report a pro forma net loss of six cents to eight per share, which also is consistent with previous guidance.

"While a decrease in revenue typically has a negative impact on EPS (earnings per share), this decrease is so slight -- just 5% -- that the impact will be small," and won't require any additional cost cutting measures to compensate for it, said a spokesman for JDS Uniphase.

The weakest sectors are the company's ultra-longhaul and longhaul fiber optics businesses, said the spokesman. Sectors that are "areas of relative strength," include transmission modules, data communications equipment, and cable television equipment.

"The major core -- transcontinental fiber optic networks and networks linking metro areas -- is installed to the point where some say there is a capacity glut, so there is bery little capex (capital expenditures) for that part of the network" said the spokesman. "But closer to the edge, in the metro and at access points, there still is build out occuring."

-– Glenn Bischoff, senior writer