JDSU reports profitable second quarter

JDSU (NASDAQ: JDSU) (TSX: JDU) says it was back in black on a GAAP basis during the second quarter of fiscal 2011, which ended January 1, 2011. The results compared favorably to a loss during the same quarter last year. However, the company doesn’t expect to hit the same revenue numbers in the third quarter.

JDSU (NASDAQ: JDSU) (TSX: JDU) says it was back in black on a GAAP basis during the second quarter of fiscal 2011, which ended January 1, 2011. The results compared favorably to a loss during the same quarter last year. However, the company doesn’t expect to hit the same revenue numbers in the third quarter.

On a GAAP basis, JDSU says net revenue for the second fiscal quarter of 2011 was $473.5 million and net income was $23.6 million, or $0.10 per share. This compares to net revenue of $405.2 million and net income of $0.1 million for the previous quarter and net revenue of $342.9 million and net loss of $(19.5) million, or $(0.09) per share for the second fiscal quarter of 2010.

On a non-GAAP basis, net revenue for the second fiscal quarter of 2011 was $477.2 million and net income was $67.0 million or $0.29 per share. This compares to non-GAAP net revenue of $411.3 million and net income of $44.8 million, or $0.20 per share for the prior quarter, and non-GAAP net revenue of $343.8 million and net income of $26.6 million or $0.12 per share for the second fiscal quarter of 2010.

Meanwhile, gross margin was 48.8% compared to 47.4% in the prior quarter and 44.6% in the second quarter of fiscal 2010. Operating margin was 15.3% compared to 10.8% in the prior quarter and 8.2% in the second quarter of fiscal 2010.

"In fiscal Q2 JDSU reported record revenues, gross margin, and operating margin, which exceeded our operating model target," said Tom Waechter, JDSU's president and CEO. "This is an exciting time for JDSU. Our market drivers are strong, our innovation engine and pipeline for new products is robust, and we continue to increase our operating leverage."

Communications Test and Measurement non-GAAP revenue of $231.4 million increased by 26.6% compared to the prior quarter and increased 30.8% compared to the second quarter of fiscal 2010. Revenue from this segment represented 48.5% of total net revenue.

Communications and Commercial Optical Products non-GAAP revenue of $191.1 million increased 13.8% compared to the prior quarter and increased 70.2% compared to the second quarter of fiscal 2010. Revenue from this segment represented 40.0% of total net revenue.

Optical Communications non-GAAP revenue of $168.4 million increased 17.8% compared to the prior quarter and increased 76.2% compared to the second quarter of fiscal 2010.

Commercial Lasers non-GAAP revenue of $22.7 million decreased 9.2% compared to the prior quarter and increased 35.9% compared to the second quarter of fiscal 2010.

The only spoiler was the Advanced Optical Technologies business. Non-GAAP revenues there of $54.7 million decreased 9.6% compared to the prior quarter and remained flat compared to the second quarter of fiscal 2010. Revenue from this segment represented 11.5% of total net revenue.

Americas' customers represented 51% of total net revenue for the quarter. EMEA and Asia-Pacific customers represented 26% and 23%, respectively.

For the third quarter of fiscal 2011, ending April 2, 2011, JDSU says it expects non-GAAP net revenue to be in the range of $440 to $460 million.

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