Prospectus for JDSU-ETEK merger is now on EdgarOnline. A lot of it is way over my head, but I'm plowing through it.
One paragraph is of particular interest in light of yesterday's supply agreement extension with SDLI:
<<<<
IF JDS UNIPHASE DOES NOT ACHIEVE ACCEPTABLE MANUFACTURING VOLUMES, YIELDS OR SUFFICIENT PRODUCT RELIABILITY, ITS OPERATING RESULTS COULD SUFFER
The manufacture of JDS Uniphase's products involves highly complex and precise processes, requiring production in highly controlled and clean environments. Changes in JDS Uniphase's manufacturing processes or those of its suppliers, or their inadvertent use of defective or contaminated materials, could significantly reduce its manufacturing yields and product reliability. Because the majority of JDS Uniphase's manufacturing costs are relatively fixed, manufacturing yields are critical to its results of operations. Some of JDS Uniphase's divisions have in the past experienced lower than expected production yields, which could delay product shipments and impair gross margins. These divisions or any of JDS Uniphase's other manufacturing facilities may not maintain acceptable yields in the future.
For example, JDS Uniphase's existing Uniphase Netherlands facility has not achieved acceptable manufacturing yields since the June 1998 acquisition, and there is continuing risk attendant to this facility and its manufacturing yields and costs. Moreover, JDS Uniphase recently completed construction of a new laser fabrication facility at Uniphase Netherlands, and this facility has not yet reached targeted yields, volumes or cost levels. Uniphase Netherlands may not successfully manufacture laser products in the future at volumes, yields or cost levels necessary to meet JDS Uniphase's customers' needs. To the extent JDS Uniphase does not achieve acceptable manufacturing yields or experience product shipment delays, JDS Uniphase's business, operating results and financial condition would be materially and adversely affected. . . .
>>>>>
Pat |
