JDSU to discontinue certain low-speed wireline testers

"These are wireline-based test instruments that are no longer aligned with our customer’s priorities," said a company representative.

May 7th, 2013

As reported by Stephen Hardy atCablinginstall.com's sister site, Lightwave: On May 1, JDSU (NASDAQ: JDSU) revealed that it will stop selling test instruments for certain low-speed wireline applications. However, the company hasn't yet said specifically which products are facing the ax.

The company revealed the move as it announced results of the third quarter of fiscal 2013, which ended March 30. Rex Jackson, CFO and executive vice president at JDSU, said to analysts on a conference call May 1 that the discontinued products contributed about $1 million of what he termed “low margin” revenue during the quarter.

Exactly which products JDSU has dropped from its test portfolio remains something of a mystery. Asked for details, JDSU's corporate media relations spokesman Jim Monroe wrote to Lightwave's Hardy in an email, "These are wireline-based test instruments that are no longer aligned with our customer’s priorities. As you know, we continue to focus our investment on mobility and software-based network visibility and control solutions like PacketPortal."

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Monroe wrote in a subsequent email that he could not provide additional details, said Hardy.

During the aformentioned conference call, JDSU revealed that it had incurred a $2.2 million charge for accelerated amortization of related intangibles during the quarter in light of its decision. The company also incurred $11.3 million in inventory related charges included in its cost of sales due to the action. For the quarter, JDSU reported GAAP net revenue of $405.3 million and a net loss of $28.0 million ($0.12 per share). The revenue total was about $2 million higher than the same quarter of the previous fiscal year, but down $24.1 million from the prior quarter.

“The March quarter experienced delayed carrier capex budget releases resulting in lower revenue than expected in our Communications Test and Measurement and Optical Communications businesses,” stated Tom Waechter, JDSU's president and CEO, via a press release.

The company expects its performance to improve, however. It forecasted non-GAAP net revenue of between $420 million and $440 million for the fourth quarter of fiscal 2013, which ends June 29, 2013.

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