I can't believe these CNBC jackasses are still out there painting the picture of a dying corporation. First of all, the goodwill writedown is totally insignificant. If any of the analysts ever paid attention to any tech company's reported GAAP results, no one would have earnings (thus the need for "pro forma" portions of financial statements). Secondly, JDS' pro forma results for EPS INCLUDE the effects of the Global Realignment Program (which includes the writedown of obsolete inventory)! This is not a recurring expense...this is not a significant portion of their operations...this was not considered in analysts' 0.03 EPS estimate! Look, JDS was $477M in the red for Q4'01. Back out the $500M in GRP, and we arrive at income (quite a feat when everyone else is bleeding cash both operationally and in total-AMCC, PMC, Broadcom, Vitesse, Avanex, NewFo, etc, etc, etc) of $23...or EPS of around 2 cents-per-share. Now if only Joe Kernan, Bob Pisani, Sue Herrera, Maria Bartiromo, Carl Quintanilla, Pat Bolland, Ted David, Tyler Mathisen-you get the idea-could recognize this before slamming Joe Straus and treating the man with undue disrespect (the whole goddamn industry is in the crapper...what can Straus do...why is he being demonized???), perhaps the world would better understand the true strength of JDS. And I'm not just talking about its position as head honcho in a very important tech market, but its financial power. When every funded startup is closing its doors in nine months, JDS will still be pumping hundreds of millions into R&D and completing pointed acquisitions in preparation of the inevitable return to glory of the fiber optics space. Patience is a necessity nowadays, as is the wherewithal to shock the system and buy more. This sector is too crucial to be washed away by the careless tides of technology. Buy JDS, Avanex, New Focus, AMCC, PMC-Sierra, and Vitesse and hold on for the long run. You will be rewarded.
I haven't forgotten... |
