JDS makes target, but warns
Firm sets major restructuring and plans to cut 5,000 jobs
By Greg Morcroft, CBS.MarketWatch.com Last Update: 7:07 AM ET Apr 24, 2001
SAN JOSE, Calif. (CBS.MW) -- Fiber optic industry leader JDS Uniphase reported fiscal third quarter net income of that met analysts' estimates, and announced a major restructuring that will include closing several plants and eliminating 5,000 jobs, or 20 percent of its workforce.
The company (JDSU: news, msgs, alerts) reported fiscal third quarter pro-forma net income of $160 million or 14 cents per share, meeting the analyst estimate on sales of $920 million, compared to $108 million, or 11 cents per share on revenue of $485 million in the same quarter a year ago.
The company also said it expects fourth quarter pro forma earnings per share will be 5 cents, on revenue of about $700 million. The consensus analyst estimate for JDS's fourth quarter earnings is 12 cents. See company earnings release
JDS said it will take a fourth quarter charge of $375 million to $425 million for severance and restructuring and the result will be cost savings going forward of $25 million.
Pro forma net income for the nine months ended March 31, 2001 was $545 million or 51 cents per share, an increase of 112 percent from the $257 million or 28 cents per share earned in the comparable prior year period.
"The Company has limited visibility as to sales in future periods, and is not currently providing sales guidance for fiscal 2002."
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