|
|
 | | | |
- close
- close
- close
- close
Suggest other news sources for this topic
WIKI ANALYSIS
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]
Competitors
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.
References
- ↑ http://phx.corporate-ir.net/phoenix.zhtml?c=105112&p=irol-sec
- ↑ http://www.jdsu.com/News-and-Events/news-releases/Pages/jdsu-announces-fiscal-2010-fourth-quarter-and-year-end-results.aspx
- ↑ JDSU 2010 10-k
- ↑ http://phx.corporate-ir.net/phoenix.zhtml?c=105112&p=irol-sec
- ↑ http://phx.corporate-ir.net/phoenix.zhtml?c=105112&p=irol-sec
| |||||||
