Going with the positive "vives" at the meeting today, here's a great article on the meeting by Kevin Bell of the Ottawa Sun:
Thursday December 16 10:03 PM ET
JDS Uniphase plans big expansion that could mean 2,400
jobs in the Ottawa area next year
BY KEVIN BELL, Ottawa Sun
NEPEAN, Ont. (CP) - JDS Uniphase Corp (NasdaqNM:JDSU - news). is spending $125 million
US on a worldwide expansion that will create thousands of jobs - most of them in the Ottawa area.
The company told exuberant shareholders at its annual general meeting that the expansion is
necessary to keep up with explosive growth in the fibre-optic equipment market.
The company will add 600,000 square feet of manufacturing space and related capital equipment
throughout its global operations. But the largest expansion will be in Ottawa, where 360,000
square feet will be added in a third phase of its campus.
Company officials could not estimate how many jobs this will create but estimated the additional
jobs will be proportional to the extra space.
Since the expansion will increase JDS's Ottawa space by over 40 per cent, more than 2,400 jobs
may be created based on current employment of 6,000. However, introduction of more automation
could reduce that figure.
Company president Jozef Straus said the investment reflects JDS's confidence in the growth of
fibre-optic telecommunications.
"As we enter the new millennium, we believe that this expansion, among other things, will better
position JDS Uniphase to serve the needs of its customers and to seize the future opportunities the
industry will offer," he said.
Company officials addressed more than 500 rapturous shareholders who attended a
standing-room-only annual meeting. It was the first general meeting since JDS Fitel announced Jan.
28 it was merging with Uniphase Corp. of San Jose, Calif.
Since then, the share price has taken off like a rocket.
It shot up from less than $75 in January to pass the $400 plateau last month before settling back
slightly. Following Thursday's announcement, the stock gained $29 or 8.5 per cent to close at
$369 on the Toronto Stock Exchange.
The stock split 2-for-1 in September and shareholders approved Thursday another 2-1 split, to
take place Dec. 22.
The meeting was punctuated by numerous expressions of gratitude from shareholders, well as loud
applause and whistles when the key
managers, Straus and chief executive Kevin Kalkhoven, were introduced.
Kalkhoven captured the tone of the meeting by delivering his address capped with a Santa hat. It
was a love-in.
With more than 8,000 employees at 19 sites in eight countries, JDS generates more than $1 billion
in revenues and is growing rapidly. Company officials told analysts recently it is expecting 80 per
cent growth this year.
Kalkhoven said the company is poised to soon cross the $2 billion threshold. "We are in the middle
of a vortex of activity that is quite incredible," he said.
The massive expansion is the third phase of a four-phase strategy to
capitalize on the growth of the Internet and the need to broaden bandwidth through fibre-optic
technology.
The company's first phase was the development of a broad product portfolio. The second phase
involved making modules that combined various products to allow customers such as Nortel
Networks to add bandwidth faster and cheaper.
One study shows that the market for fibre-optic components and modules will grow from $5.5
billion this year to $23 billion by 2003.
Kalkhoven said the company is keeping its fourth phase under wraps so competitors don't get wind
of it. © The Canadian Press, 1999
ca.dailynews.yahoo.com
Lynn |
