JDSU (NASDAQ: JDSU) announced that it expects diminished results in the range of $35-$45 million on a non-GAAP basis in the current quarter ending December 31 due to the effects of flooding in Thailand at its Fabrinet operation, which several optical communications supplier firms use as a contract manufacturer. Two of Fabrinet’s facilities in Thailand are currently out of action; one of these is under water.
Overall JDSU expects non-GAAP net revenues in the current quarter to fall within a range of $375 to $405 million. The company made the announcement as it released numbers for the fiscal first quarter, which ended October 1. “I am…happy to announce that all JDSU, Thailand employees are safe from the flooding in southern Thailand and we have added additional employees there to help meet our customer's needs as best as possible under these difficult conditions," commented Tom Waechter, JDSU's president and CEO.
As for the company’s first quarter performance, JDSU reported GAAP net revenue of $420.8 million and a net loss of $5.8 million, or $0.03 a share. This represents a slide in revenue of about $51 million from the previous quarter, when JDSU reported net income of $9.3 million, or $0.04 per share. However, these figures represented a revenue improvement over the year-ago quarter, when JDSU saw net revenue of $405.2 million but positive net income of $0.1 million.
On a non-GAAP basis, net revenue for the first fiscal quarter of 2012 was $421.1 million and net income was $40.9 million or $0.18 per share. Non-GAAP operating margin was 10.9% versus 12.3% in the prior quarter and 10.8% in the first quarter of fiscal 2011. JDSU reported non-GAAP gross margin of 47.3% up from 46.7% in the prior quarter and 47.4% in the year-ago quarter.
Looking at the performance of individual sectors, the company's Communications Test and Measurement non-GAAP revenue was $185.2 million in the first quarter, down 12.4% compared to the prior quarter and up 1.3% compared to the first quarter of fiscal 2011. Revenue represented 44.0% of total net revenue.
The company's Communications and Commercial Optical Products revenue of $180.3 million decreased 10.9% compared to the prior quarter and increased 7.3% compared to the first quarter of fiscal 2011. Revenue from this segment represented 42.8% of total net revenue. Within this sector, Optical Communications revenue was $150.1 million, a decreased of 14.0% compared to the prior quarter but an improvement of 5.0% compared to the first quarter of fiscal 2011.
"I am very pleased with our operating results during this period of macroeconomic uncertainty," added Waechter. "Although revenue levels are being restricted by these global headwinds, the mix of our highly innovative and differentiated products continues to grow with a favorable impact on gross margin. This combined with strong cost controls allowed us to significantly exceed expectations for operating margins."
Source: Lightwave
Related Coverage:Thai rains knock out Fabrinet, worry optical communications customers (Lightwave.com)