Ditech Communications announces sale of optical business unit to JDS Uniphase

July 17, 2003
17 July 2003 Mountain View, CA Lightwave -- Ditech Communications Corp., developer of voice intelligibility solutions for communications networks, today announced that it has completed the sale of its optical communications business unit to JDS Uniphase. This transaction will enable Ditech to focus on growing its voice business and adds to JDS Uniphase's abilities to integrate optics, electronics, and software in subsystems for optical equipment manufacturers.

17 July 2003 Mountain View, CA Lightwave -- Ditech Communications Corp., developer of voice intelligibility solutions for communications networks, today announced that it has completed the sale of its optical communications business unit to JDS Uniphase. This transaction will enable Ditech to focus on growing its voice business and adds to JDS Uniphase's abilities to integrate optics, electronics, and software in subsystems for optical equipment manufacturers.

Per the agreement, JDS Uniphase paid approximately $1.6 million in cash at the closing and will make additional payments of up to $4.9 million in cash based on the revenue generated by the acquired business through June 30, 2005. Pursuant to the terms of the deal, JDS Uniphase is entitled to be reimbursed for any purchased inventory that remains unused at June 30, 2004.

Ditech believes the transaction and related activities noted above will be treated as discontinued operations from an accounting perspective. Based on this, the company anticipates revenues from the ongoing business in the first quarter fiscal 2004 will be between $10.3 million and $10.6 million, which is up approximately 5% sequentially from the previous quarter.

"The sale of our optical business realizes our goal to concentrate solely on what has traditionally been our greatest source of revenue, our voice business," contends Tim Montgomery, Ditech's chairman, president and chief executive officer. "Our renewed focus on one business and our continued investment in product development in the voice market gives us the opportunity for growth and the greatest ability to deliver value to our customers and investors," he adds.

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