JDS Uniphase Announces Fourth Quarter Results
Sales Increase 33% from Third Quarter
NEPEAN, Ontario and SAN JOSE, Calif., July 26 /CNW/ -- JDS Uniphase Corporation (Nasdaq: JDSU - news; Toronto: JDU - news) today reported sales for its fourth quarter ended June 30, 2000 of $524 million and pro forma net income of $114 million or $0.14 per diluted share. Sales for the year ended June 30, 2000 were $1.43 billion.
Sales for the quarter were 33% above net sales of $395 million for the quarter ended March 31, 2000 and 173% above pro forma combined sales of $192 million for the quarter ended June 30, 1999. Sales for the year ended June 30, 2000 of $1.43 billion were 143% above pro forma sales for the comparable prior year period. Pro forma sales for the prior year periods combine the separately reported results of JDS FITEL Inc. and Uniphase Corporation, which merged in a transaction accounted for as a purchase at the close of business on June 30, 1999. Results included those of Epitaxx, Inc., Sifam Ltd., Optical Coating Laboratory, Inc., Cronos Integrated Microsystems, Inc., and Fujian Casix Laser, Inc., which were acquired in transactions accounted for as purchases on November 15, 1999, December 16, 1999, February 4, 2000, April 19, 2000, and May 8, 2000, respectively. Results for the quarter do not include those of E-TEK Dynamics, Inc. which was acquired on June 30, 2000 in a transaction accounted for as a purchase.
Including merger-related charges, purchased intangibles amortization and payroll taxes on stock option exercises, the Company reported a loss of $419 million or $0.54 per share for the quarter and $905 million or $1.26 per share for fiscal 2000.
JDS Uniphase generated $88 million in cash flow from operations for the quarter and $281 million for the year. The Company invested $280 million in capital expenditures during the year in connection with its global capacity expansion.
On a pro forma basis, excluding merger-related charges, purchased intangibles amortization and payroll taxes on stock option exercises, JDS Uniphase reported net income of $114 million or $0.14 per share for the quarter, an increase of 33% over the $86 million or $0.11 per share earned in the quarter ended March 31, 2000. Pro forma net income for the year ended June 30, 2000 was $327 million or $0.42 per share, an increase of 162% from the $125 million or $0.18 per share earned in the prior year's comparison period. The impact of excluded acquisition, divestiture, amortization, and payroll tax charges on stock option exercises is summarized in the Company's pro forma financial tables that follow in this release.
The following table summarizes JDSU pro forma results for the quarter:
(in millions, except per share amounts) Three months ended
June 30,
2000 1999
Net sales $524 $192
Gross profit 263 101
Income from operations 164 62
Income before income taxes 173 65
Net income $114 $41
Net income per diluted share $0.14 $0.06
Diluted weighted average shares outstanding 844 688
Pro forma results for the quarter ended June 30, 2000 exclude the $23.9 million effect on gross profit of the write-off of E-TEK filter inventory immediately following its acquisition by the Company and the purchase accounting increase in Cronos and Casix inventory at the dates of acquisition; $256.9 million in acquired in-process research and development charges recorded in connection with the E-TEK, Cronos and Casix acquisitions; $289.3 of purchased intangibles amortization; and $4.6 million of payroll taxes on stock option exercises. Fiscal 1999 pro forma results combine the separately reported results of JDS FITEL Inc. and Uniphase Corporation. Pro forma results for the quarter ended June 30, 1999 exclude $210.4 million in acquired in-process research and development charges recorded in connection with the merger with JDS FITEL Inc.; $0.5 million in product integration charges resulting from the merger with JDS FITEL Inc.; $3.9 million of purchased intangibles amortization, and certain commercial transactions between JDS FITEL Inc. and Uniphase Corporation. These pro forma results also reflect the impact of pro forma adjustments to income tax expense.
E-TEK DYNAMICS RESULTS
E-TEK Dynamics, Inc. separately reported sales of $123 million for its fourth quarter ended June 30, 2000, and pro forma net income of $23 million or $0.32 per diluted share. Sales for the year ended June 30, 2000 were $346 million. Sales for the quarter were 36% higher than net sales of $91 million for the quarter ended April 1, 2000 and 138% above sales of $52 million for the quarter ended June 30, 1999. Sales for the year ended June 30, 2000 of $346 million were 101% above sales for fiscal 1999.
Including realized gains on certain minority investments, merger-related charges, purchased intangibles amortization, and payroll taxes on stock option exercises, the Company reported income of $8 million or $0.12 per share for the quarter and $36 million or $0.51 per share for fiscal 2000.
E-TEK generated $53 million in cash flow from operations for the quarter. The Company invested $18 million in capital expenditures during the quarter.
On a pro forma basis, excluding the above mentioned adjustments, E-TEK reported net income of $23 million or $0.32 per share for the quarter, an increase of 32% over the $17 million or $0.24 per share earned in the quarter ended April 1, 2000. Pro forma net income for the year ended June 30, 2000 was $66 million or $0.95 per share, an increase of 118% from the $30 million or $0.49 per share earned in the prior year.
The following table summarizes E-TEK pro forma results for the quarter:
(in millions, except per share amounts) Three months ended
June 30,
2000 1999
Net sales $123 $52
Gross profit 61 26
Income from operations 36 15
Income before income taxes 37 16
Net income $23 $10
Net income per diluted share $0.32 $0.15
Diluted weighted average shares outstanding 72 64
Pro forma results for the quarter ended June 30, 2000 exclude realized gains of $42.6 million on the sale of certain minority investments, $35.5 million of transaction costs in connection with the merger with JDS Uniphase, $8.3 million of purchased intangibles amortization, and $0.5 million of payroll taxes on stock option exercises. Pro forma results for the quarter ended June 30, 1999 exclude $4.2 million of acquired in-process research and development costs and $0.3 million of intangibles amortization. These pro forma results also reflect the impact of pro forma adjustments to income tax expense.
COMBINED RESULTS
Pro forma sales combining the separately reported results of JDS Uniphase and E-TEK were $641 million for the quarter and $1.77 billion for the year. Pro forma net income was $137 million or $0.14 per share for the quarter and $394 million or $0.42 per share for the fiscal year ended June 30, 2000.
JDS Uniphase is a high technology company that designs, develops, manufactures and distributes a comprehensive range of products for the growing fiberoptic communications market. These products are deployed by system manufacturers worldwide to develop advanced optical networks for the telecommunications and cable television industries. JDS Uniphase Corporation is traded on the Nasdaq National Market under the symbol JDSU, and the exchangeable shares of JDS Uniphase Canada Ltd. are traded on The Toronto Stock Exchange under the symbol JDU. More information on JDS Uniphase is available at www.jdsuniphase.com.
JDS UNIPHASE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three months ended Year ended
June 30, June 30,
2000 1999 2000 1999
Net sales $524.0 $87.1 $1,430.4 $282.8
Cost of sales 285.2 40.0 751.6 138.7
Gross profit 238.8 47.1 678.8 144.1
Operating expenses
Research and
development 41.2 8.3 113.4 27.0
Selling, general
and administrative 62.1 12.8 172.9 37.4
Amortization of
purchased
intangibles 289.3 3.9 896.9 15.7
Acquired in-process
R&D 256.9 210.4 360.7 210.4
Other operating
expenses -- -- -- 6.8
Total operating
expenses 649.5 235.4 1,543.9 297.3
Loss from operations (410.7) (188.3) (865.1) (153.2)
Interest and other
income, net 9.1 1.0 35.3 3.6
Loss before income
taxes (401.6) (187.3) (829.8) (149.6)
Income tax expense 17.2 7.0 74.9 21.5
Net loss $(418.8) $(194.3) $(904.7) $(171.1)
Net loss per share $(0.54) $(0.60) $(1.26) $(0.54)
Number of weighted
average shares
outstanding 782.0 323.6 718.7 318.2
JDS UNIPHASE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
June 30, June 30,
2000 1999
Current assets:
Cash, cash equivalents and short-term
investments $1,114.3 $233.9
Accounts receivable, less allowances
for doubtful accounts 381.6 120.9
Inventories 375.4 87.8
Prepaid assets and other current assets 101.6 21.0
Total current assets 1,972.9 463.6
Property, plant, and equipment, net 670.7 181.1
Intangible assets 22,337.8 3,444.2
Other assets 1,407.7 7.2
TOTAL ASSETS $26,389.1 $4,096.1
Current liabilities:
Accounts payable $195.2 $38.1
Accrued payroll and related expenses 98.8 27.2
Income taxes payable 108.6 37.2
Other accrued expenses 244.6 46.3
Total current liabilities 647.2 148.8
Deferred tax liabilities 902.1 318.2
Other non-current liabilities 61.3 9.8
Stockholders' equity:
Common stock and additional paid-in capital 25,898.4 3,822.8
Accumulated deficit and other
stockholders' equity (1,119.8) (203.5)
Total stockholders' equity 24,778.6 3,619.3
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $26,389.1 $4,096.1
JDS UNIPHASE CORPORATION
OPERATING SEGMENT INFORMATION
(in millions)
(unaudited)
Three months ended Year ended
June 30, June 30,
2000 1999 2000 1999
Components:
Shipments $335.6 $53.3 $961.8 $169.4
Intersegment sales 40.9 1.7 122.6 3.8
Net sales to
external customers 294.7 51.6 839.2 165.6
Operating income 124.6 19.8 341.0 53.2
Modules:
Shipments 142.8 22.4 429.5 62.0
Intersegment sales 0.3 -- 0.3 --
Net sales to
external customers 142.5 22.4 429.2 62.0
Operating income 29.3 6.3 91.8 15.9
Net sales by reportable
segments 437.2 74.0 1,268.4 227.6
All other net sales 86.8 13.1 162.0 55.2
524.0 87.1 1,430.4 282.8
Operating income by
reportable segment 153.9 26.1 432.8 69.1
All other operating
income (18.4) (0.1) (40.3) 3.8
Unallocated amounts:
Acquisition related
charges (546.2) (214.3) (1,257.6) (226.1)
Interest and other
income, net 9.1 1.0 35.3 3.6
Loss before income
taxes $(401.6) $(187.3) $(829.8) $(149.6)
JDS UNIPHASE CORPORATION
PRO FORMA STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three months ended June 30, 2000
Pro Forma
As Reported Adjustments Pro Formaà
Net sales $524.0 -- $524.0
Cost of sales 285.2 (24.5) 260.7
Gross profit 238.8 24.5 263.3
Operating expenses:
Research and development 41.2 (0.9) 40.3
Selling, general and
administrative 62.1 (3.1) 59.0
Purchased intangibles
and in-process R&D 546.2 (546.2) --
Total operating expenses 649.5 (550.2) 99.3
Income (loss) from operations (410.7) 574.7 164.0
Interest and other income, net 9.1 -- 9.1
Income (loss) before income
taxes (401.6) 574.7 173.1
Income tax expense 17.2 41.6 58.8
Net income (loss) $(418.8) $533.1 $114.3
Net income (loss) per share $(0.54) $0.15
Net income (loss) per share,
diluted basis $(0.54) $0.14
Number of weighted average
shares outstanding 782.0 782.0
Number of weighted average
shares and equivalents 782.0 844.0
Three months ended June 30, 1999
Pro
JDS Forma Pro
Uniphase FITEL Adjustments Formaà
Net sales $87.1 $104.8 $(0.4) $191.6
Cost of sales 40.0 50.2 0.7 90.9
Gross profit 47.1 54.6 (1.1) 100.6
Total operating
expenses 235.4 19.5 (215.9) 39.0
Income (loss) from
operations (188.3) 35.1 214.8 61.6
Interest and other
income, net 1.0 1.2 0.9 3.1
Income (loss) before
income taxes (187.3) 36.3 215.7 64.7
Income tax expense 7.0 13.5 2.8 23.3
Net income (loss) $(194.3) $22.8 $212.9 $41.4
Net income per share $0.06
Net income per share,
diluted basis $0.06
Number of weighted
average shares
outstanding 642.2
Number of weighted
average shares and
equivalents 687.8
à Pro forma results for 2000 exclude the effect on gross profit of the write-off of E-TEK filter inventory immediately following its acquisition by the Company, the purchase accounting increase in Cronos and Casix inventory at the date of acquisition, in-process R&D recorded in connection with the E-TEK, Cronos and Casix acquisitions, amortization of purchased intangibles, and payroll taxes on stock option exercises. Fiscal 1999 pro forma results combine the separately reported results of JDS FITEL Inc. and Uniphase Corporation. Pro forma results for 1999 exclude intercompany sales, amortization of purchased intangibles and the reclassification of certain JDS FITEL costs to cost of sales to conform treatment. These pro forma results also reflect the impact of the pro forma adjustments on income tax expense.
JDS UNIPHASE CORPORATION
PRO FORMA STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Year ended June 30, 2000
Pro Forma
As Reported Adjustments Pro Formaà
Net sales $1,430.4 -- $1,430.4
Cost of sales 751.6 (49.6) 702.0
Gross profit 678.8 49.6 728.4
Operating expenses:
Research and development 113.4 (3.8) 109.6
Selling, general and
administrative 172.9 (13.6) 159.3
Purchased intangibles
and in-process R&D 1,257.6 (1,257.6) --
Total operating expenses 1,543.9 (1,275.0) 268.9
Income (loss) from
operations (865.1) 1,324.6 459.5
Interest and other income,
net 35.3 -- 35.3
Income (loss) before income
taxes (829.8) 1,324.6 494.8
Income tax expense 74.9 93.2 168.1
Net income (loss) $(904.7) 1,231.4 326.7
Net income (loss) per share $(1.26) $0.46
Net income (loss) per share,
diluted basis $(1.26) $0.42
Number of weighted average
shares outstanding 713.4 713.4
Number of weighted average
shares and equivalents 713.4 777.8
Year Ended June 30, 1999
Pro
JDS forma Pro
Uniphase FITEL adjustments formaà
Net sales $282.8 $305.7 $(0.6) $587.9
Cost of sales 138.7 146.3 1.9 286.9
Gross profit 144.1 159.4 (2.5) 301.0
Total operating
expenses 297.3 59.6 (237.5) 119.4
Income (loss) from
operations (153.2) 99.8 235.0 181.6
Interest and other
income, net 3.6 5.6 0.9 10.1
Income (loss) before
income taxes (149.6) 105.4 235.9 191.7
Income tax expense 21.5 39.1 6.5 67.1
Net income (loss) $(171.1) $66.3 $229.4 124.6
Net income per share $0.20
Net income per share,
diluted basis $0.18
Number of weighted
average shares
outstanding 635.6
Number of weighted
average shares
and equivalents 679.2
àPro forma results for 2000 exclude the effect on gross profit of the write-off of E-TEK filter inventory immediately following its acquisition by the Company, the purchase accounting increase in Epitaxx, Sifam, OCLI, Cronos and Casix inventory at the date of acquisition, in-process R&D recorded in connection with the E-TEK, Cronos, Casix, Epitaxx, Sifam and OCLI acquisitions, amortization of purchased intangibles, and payroll taxes on stock option exercises. Fiscal 1999 pro forma results combine the separately reported results of JDS FITEL Inc. and Uniphase Corporation. Pro forma results for 1999 exclude intercompany sales, amortization of purchased intangibles, UBP merger costs, loss on disposal of Ultrapointe and the reclassification of certain JDS FITEL costs to cost of sales to conform treatment. These pro forma results also reflect the impact of the pro forma adjustments on income tax expense.
E-TEK DYNAMICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three months ended Year ended
June 30, June 30,
2000 1999 2000 1999
Net sales $122.8 $51.5 $346.2 $172.7
Cost of sales 61.8 25.8 174.1 85.2
Gross profit 61.0 25.7 172.1 87.5
Operating expenses
Research and
development 11.2 4.1 31.0 14.7
Selling, general
and administrative 14.6 6.3 41.3 24.5
Amortization of
purchased intangibles 8.3 0.3 31.2 0.3
Acquired in-process
R&D -- 4.2 1.6 4.2
Other operating
expenses 35.5 -- 35.5 --
Total operating expenses 69.6 14.9 140.6 43.7
Income (loss) from
operations (8.6) 10.8 31.5 43.8
Interest and other
income, net 1.2 0.7 6.2 2.2
Extraordinary gain 42.6 -- 42.6 --
Income before income
taxes 35.2 11.5 80.3 46.0
Income tax expense 26.9 4.6 44.0 18.4
Net income $8.3 $6.9 $36.3 $27.6
Convertible preferred
stock accretion -- -- -- 3.9
Net income available
to common shareholders $8.3 $6.9 $36.3 $23.7
Net income per share $0.12 $0.12 $0.56 $0.55
Net income per share,
diluted basis $0.12 $0.11 $0.51 $0.38
Net income per share,
pro forma, diluted
basis $0.32 $0.15 $0.95 $0.49
Number of weighted
average shares
outstanding 67.0 58.3 65.1 43.2
Number of weighted
average shares and
equivalents 72.1 64.1 70.6 61.7
For further information
Anthony R. Muller, Executive Vice President and CFO, 408-434-1800, or Alison Reynders, Manager, Investor Relations, 408-434-1800, both of JDS Uniphase Corporation
Web site: jdsunph.com |
