JDSU
JDS Uniphase Corp
TMT
09/23/2013
Presented
| Date | 09/13/2013 |
| Price | $14.99 |
| Market Cap | $3.56B |
| Ent Value | $3.11B |
| P/E Ratio | N/A |
| Book Value | $4.88 |
| Div Yield | N/A |
| Shares O/S | 237.53M |
| Ave Daily Vol | 4,700,000 |
| Short Int | 4.79% |
Current
| Price | $9.20 |
| Market Cap | $2.05B |
| JDS Uniphase Corporation provides communications test and measurement solutions, and optical products for telecommunications service providers, wireless operators, cable operators, network-equipment manufacturers, and enterprises worldwide. Its Communications Test and Measurement segment supplies instruments, software, and services to enable the design, deployment, and maintenance of communication equipment and broadband networks. This segment’s product portfolio consists of test tools, platforms, software, and services for wireless and fixed networks. The company’s Communications and Commercial Optical Products segment offers components, modules, subsystems, and solutions to communications equipment providers for telecommunications and enterprise data communications. These products comprise transmitters, receivers, amplifiers, ROADMs, optical transceivers, multiplexers and demultiplexers, switches, optical-performance monitors and couplers, splitters, and circulators that enable the transmission of video, audio, and text data through fiber-optic cables. This segment also provides laser products, including diode, direct-diode, diode-pumped solid-state, fiber, and gas lasers for micromachining, materials processing, bioinstrumentation, consumer electronics, graphics, medical/dental, and optical pumping applications; and photovoltaic products, such as concentrated photovoltaic cells and receivers for generating energy from sunlight, as well as fiber optic-based systems for delivering and measuring electrical power. Its Advanced Optical Technologies segment offers optical solutions for anti-counterfeiting, authentication, and thin film coatings for public and private sector markets. This segment also provides multilayer product-security solutions that deliver overt, covert, forensic, and digital product and document verification for protection against counterfeiting and tampering. The company was founded in 1979 and is headquartered in Milpitas, California. |
Please note, this idea was updated on 4/8/2014 and can be read here: LONG — JDS Uniphase Corporation (JDSU) (Update).
On September 13, 2013, DeMatteo Monness (DM) interviewed one of its clients about his long thesis on JDS Uniphase (JDSU). Steven Weber, DM’s Director of Research, conducted the interview. Topics discussed included: an overview of JDSU’s various businesses; factors contributing to the stock’s lagging performance relative to key competitors in the space; near-term catalysts the client expects will get the stock moving again; and more.
Publicly traded companies mentioned include: JDS Uniphase (JDSU), Finisar (FNSR), Ciena (CIEN), Microsoft (MSFT), Verizon (VZ), AT&T (T), China Mobile (CHL), China Unicom (CHU), China Telecom (CHA), ZTE (763 HK), Alcatel-Lucent (ALU), Ericsson (ERIC), Nokia (NOK), Vodafone (VOD), Sprint (S), T-Mobile (TMUS), Oplink (OPLK), Fabrinet (FN), and Ixia (XXIA)
Why you should care:
JDS Uniphase’s recent quarter came in a little light, and guidance for the forward quarter was somewhat disappointing even though the company’s book-to-bill was greater than one. The company has historically traded at a premium to its group, which includes competitors Finisar (FNSR) and Ciena (CIEN). But while Finisar and Ciena are up approximately 40% and 60% this year, respectively, JDSU is currently up just 10% YTD. Both FNSR and CIEN have benefitted from their exposure to strong data center spend, while JDSU has lagged due to its greater exposure to telecom cap ex spend. The presenter, however, believes that we’re on the verge of a perfect storm of global telecom spending increases, and that JDSU is optimally positioned to outperform over the next 6-9 months. JDSU additionally benefits from its growing exposure to gesture recognition technology; the company currently produces optical filters for Microsoft’s (MSFT) Xbox Kinect, and recently announced a couple of new customers in the space.
Could you provide us with an overview of JDSU’s business and the opportunity as you see it?
JDSU is roughly 85% comprised of two main businesses: optical communications products and test & measurement solutions. The optical components business is driven by cap ex spend on the part of telecom companies and data center providers, while test & measurement is typically exposed to telecom cap ex.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.