New York Times  Nov 29  Comment 
A bylaw change by JDS Uniphase squeezed a money manager’s campaign for change at the company.
Wall Street Journal  Nov 24  Comment 
Sandell Asset Management Corp. said influential proxy firm Institutional Shareholder Services is urging JDS Uniphase Corp. shareholders to vote against board member Martin Kaplan.
Benzinga  Oct 30  Comment 
JDS Uniphase Corp (NASDAQ: JDSU) gained more than 4 percent Thursday after the company beat expectations and said it would consider selling its optics and laser business rather than spinning off as expected. JDS Uniphase announced plans for...
Wall Street Journal  Oct 29  Comment 
JDS Uniphase swung to a loss for its September quarter as higher expenses offset a slight increase in revenue
Market Intelligence Center  Oct 22  Comment 
MarketIntelligenceCenter.com’s patented algorithms have chosen the Mar. '15 $12.00 call for a couple of hedged-trading ideas on JDS Uniphase Corp (JDSU). A traditional covered call on JDS Uniphase yields 8.99% (22.03% annualized, for comparison...
SeekingAlpha  Oct 15  Comment 
By AtonRa Partners: When JDS Uniphase (NASDAQ:JDSU) announced a few weeks ago its plan to split into two publicly traded companies, one focusing on optical components called CCOP (FY14 sales of $794m) and the other one on network-testing equipment...
SeekingAlpha  Oct 2  Comment 
By AtonRa Partners: Bloomberg reported yesterday that activist investor Sandell Asset Management was pushing JDS Uniphase (NASDAQ:JDSU) to sell its optical components and commercial lasers business to companies such as Avago (NASDAQ:AVGO) or...
TheStreet.com  Oct 1  Comment 
NEW YORK (TheStreet) --aJDS Uniphase was gaining 3.2% to $13.21 Wednesday following a report that activist hedge fund Sandell Asset Management is urging the company to sell its opticalaand laser business. Sandell's plan is in addition to JDS...
Benzinga  Oct 1  Comment 
Sandell Asset Management Corp. (“Sandell”), a significant shareholder of JDS Uniphase Corporation (NASDAQ: JDSU) (“JDSU” or the “Company”), has released a letter to the Board of Directors (the “Board”) of the Company. In such...


JDS Uniphase (NASDAQ: JDSU) provides test and measurement solutions and optical products for the telecommunications service industry. Its revenue is derived from the following business segments: communications test and measurement (47% of 2010 revenue), communications and commercial optical products (37% of 2010 revenue), and advanced optical technologies (16% of 2010 revenue).[1] JDSU operates primarily in three geographic regions: the Americas, EMEA (Europe, Middle East, and Africa), and Asia-Pacific. Major trends affecting JDSU's business operations include increasing pressure to continuously differentiate and improve its product offerings.

Business Growth

Net sales increased 6% to $1.36 billion in fiscal 2010. Net loss was -$61.8 million, which is an 95% decrease from last year's -$909.5 million due to several infrastructure changes and lower impairments of goodwill.[2][3]

Trends and Forces

Optical communications industry under pressure to provide broader array of digital services

In order to cater to growing demand for capacity and combination of services, network operators are migrating to Internet protocol networks to deliver triple-play services and lower costs. Optical networks also need increased agility to handle new, bandwidth-intensive applications as there may be sudden large changes in demand anywhere in the network. This leads to increasingly complex routers, switches, and cross-connect equipment. In order to support optical networks' needs, JDSU needs to continuously innovate to create products that cost less, have more functionality, require less power and space. JDSU has especially focused on photonic integrated circuits and seeks to stay on the forefront of next-generation networks.[4]

Increasing commoditization of previously-differentiated products affects JDSU's bottom line

With increasing competition from Asia producers of optical solutions, JDSU faces pricing pressure and needs to cut costs or differentiate its products. This has especially affected its communications and commercial optical products segment. Asian companies are often able to utilize cheaper labor for cost advantages, however, JDSU's Asia-Pacific sales comprised 24% of its total sales, so JDSU is unwilling to back out of this geographic zone. In order to differentiate itself, JDSU has utilized custom color solutions in coatings and packaging, leverage from its intellectual property and expertise in optics, light management and material technology, strong relationships with long time clients, etc.[5]


JDSU's competitors offer products across different stages of the supply chain of telecommunications equipment. As a result, JDSU competes with different divisions of different firms, which may not have heavy concentrations in the same products that JDSU offers. In turn, many of these firms outsource overcapacity production to JDSU.


  1. http://phx.corporate-ir.net/phoenix.zhtml?c=105112&p=irol-sec
  2. http://www.jdsu.com/News-and-Events/news-releases/Pages/jdsu-announces-fiscal-2010-fourth-quarter-and-year-end-results.aspx
  3. JDSU 2010 10-k
  4. http://phx.corporate-ir.net/phoenix.zhtml?c=105112&p=irol-sec
  5. http://phx.corporate-ir.net/phoenix.zhtml?c=105112&p=irol-sec
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