Big blow for JDS Uniphase, company announces loss and layoffs
July 30, 2001--JDS Uniphase has been implementing a Global Realignment Program in response to the severe industry downturn.
JDS Uniphase Corporation (Nasdaq: JDSU and TSE: JDU) reported sales of $3.2 billion for its fiscal year ended June 30, 2001 and sales of $601 million for its fourth quarter. Sales for the fourth quarter ended June 30, 2001 were 35 percent below sales of $920 million for the quarter ended March 31, 2001 and 6 percent lower than pro forma combined sales of $641 million for the quarter ended June 30, 2000.
JDS Uniphase has been implementing a Global Realignment Program in response to the severe industry downturn. This program reflects the Company's commitment to remaining in optical components and modules for telecommunications during the current business downturn and to position the Company for long term growth.
The program is expected to reduce annual expenses by $700 million from the levels experienced at the commencement of the Global Realignment Program through reductions in manufacturing capacity, employment reductions, product rationalization, and decreased discretionary spending. The Company is in the process of vacating approximately 30 percent of the Company's total physical space before the downturn.
The Company expects a global employment reduction of 16,000, of which approximately 9,000 was completed by June 30. Most of the remaining reductions are expected to take place in the first quarter.
The full impact of the Global Realignment Program will phase into the Company's income statement over the first three quarters of fiscal 2002. The goal of the program is to create a cost structure that results in breakeven financial performance at $350 million in quarterly sales.
The Company's financial condition remained strong with $1.6 billion in cash, money market and other highly liquid fixed income securities at June 30, 2001. The Company reported $65 million in cash flow from operations for the quarter and $354 million for the fiscal year and increased its cash balances through the sale of equity securities previously held as investments.
On June 14, 2001, the Company projected revenue for the first quarter of fiscal 2002 would be $450 million. The Company provides guidance based on its sales forecasts. These forecasts have been declining during the severe industry downturn and guidance was revised accordingly. The Company does not yet see any positive signs of a reversal in the downward trend in the industry and now expects first quarter revenue to be below such earlier guidance and is not currently providing guidance for the first quarter or for future periods.
About JDS Uniphase:
JDS Uniphase is a high technology company that designs, develops, manufactures and distributes a comprehensive range of products for the growing fiberoptic communications market. For more information and complete financial announcements, visit www.jdsuniphase.com.