Earnings ---JDS Uniphase Announces First Quarter Results
Canadian Corporate News - October 28, 1999 16:04
NEPEAN, ONTARIO and SAN JOSE, CALIFORNIA--JDS Uniphase Corporation(Nasdaq:JDSU and TSE:JDU) reported sales for its first quarter ended September 30, 1999, of $230 million and pro forma net incomeof $51 million or $0.29 per diluted share.
Sales for the quarter represented a 104% increase above pro forma combined sales of $113 million in the quarter ended September 30, 1998, and were 20% higher than pro forma sales of $192 million in the quarter ended June 30, 1999. Pro forma sales for prior periodscombine those of Uniphase Corporation and JDS FITEL Inc., which merged in a transaction accounted for as a purchase at the close of business on June 30, 1999.
Sales for the quarter reflected growth in the Company's component and module business segments, with the latter exhibiting exceptionally high growth as the Company implements its strategy of component integration into modules. Business segment results are provided in a table that follows in this release.
Including merger-related and purchased intangibles amortization charges, the Company reported a loss of $114 million or $0.68 per share for the quarter. Results for the quarter include the post-acquisition results of AFC Technologies, which was acquired on August 20, 1999, in a transaction accounted for as a purchase.
On a pro forma basis, excluding merger-related charges and the amortization of purchased intangible assets, JDS Uniphase reportednet income of $51 million or $0.29 per share for the quarter, an increase of 121% over the $23 million or $0.14 per share pro formacombined income for the quarter ended September 30, 1998. The impact of excluded acquisition and amortization costs is summarized in the Company's pro forma financial tables that followin this release.
The table appearing below summarizes pro forma results for the quarter as compared to pro forma results for the quarter ended September 30, 1998. The earlier period combines the separately reported results of JDS FITEL Inc. and Uniphase Corporation.
Three months ended
(in millions, except September 30,
per share amounts) 1999 1998
Net sales $230.1 $112.6
Gross profit(1) 116.3 56.4
Income from operations(1) 71.2 32.9
Income before income taxes 76.7 35.4
Net income(1) $51.4 $23.2
Net income per diluted share $0.29 $0.14
Diluted weighted avg. shares outstanding 179.5 168.1
(1) Income from operations for the quarter ended September 30, 1999,
excludes the $11.4 million effect on gross profit of the purchase
accounting increase in JDS FITEL inventory at June 30, 1999, and
$172.9 million of purchased intangibles amortization. Income from
operations for the quarter ended September 30, 1998, excludes $3.9
million of purchased intangibles amortization. Pro forma effective tax
rates for the first quarter of fiscal 2000 and 1999 were 33% and 34%,
respectively.
JDS Uniphase is a high technology company that designs, develops, manufactures and distributes a comprehensive range of products forthe 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 isavailable at www.jdsunph.com.
JDS UNIPHASE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions except per share data)
(unaudited)
Three months ended
September 30,
1999 1998
Net sales $ 230.1 $ 57.4
Cost of sales 125.2 28.9
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Gross profit 104.9 28.5
Operating expenses
Research and development 17.2 5.6
Selling, general and administrative 27.9 7.1
Amortization of purchased intangibles 172.9 3.9
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Total operating expenses 218.0 16.6
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Income (loss) from operations (113.1) 11.9
Interest and other income, net 5.5 0.9
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Income (loss) before income taxes (107.6) 12.8
Income tax expense 6.3 4.7
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Net income (loss) $ (113.9) $ 8.1
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Net income (loss) per share $ (0.68) $ 0.10
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Net income (loss) per share, diluted basis $ (0.68) $ 0.10
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Number of weighted average shares outstanding 168.5 78.2
Number of weighted average shares and
equivalents 168.5 84.5
JDS UNIPHASE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
September 30, June 30,
1999 1999
(unaudited)
Current assets:
Cash, cash equivalents and short-term
investments $ 959.2 $ 233.9
Accounts receivable, less allowances
for doubtful accounts 140.2 120.9
Inventories 98.0 87.8
Prepaid assets and other current assets 21.3 21.0
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Total current assets 1,218.7 463.6
Property, plant, and equipment, net 209.2 181.1
Intangible assets 3,311.3 3,444.2
Other assets 6.2 7.2
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TOTAL ASSETS $ 4,745.4 $ 4,096.1
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Current liabilities:
Accounts payable $ 51.7 $ 38.1
Accrued payroll and related expenses 21.1 27.2
Income taxes payable 17.8 37.2
Other accrued expenses 58.2 46.3
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Total current liabilities 148.8 148.8
Deferred tax liabilities 304.0 318.2
Other non-current liabilities 8.3 9.8
Stockholders' equity:
Common stock and additional paid-in
capital 4,593.7 3,822.8
Accumulated deficit and other
stockholders' equity (309.4) (203.5)
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Total stockholders' equity 4,284.3 3,619.3
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,745.4 $ 4,096.1
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JDS UNIPHASE CORPORATION
OPERATING SEGMENT INFORMATION
(in millions)
(unaudited)
Three months ended
September 30,
1999 1998
Components:
Shipments $ 159.9 $ 34.5
Intersegment sales (18.7) (1.0)
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Net sales to external customers $ 141.2 $ 33.5
Operating income 54.9 9.4
Modules:
Shipments $ 76.3 $ 9.3
Intersegment sales -- --
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Net sales to external customers $ 76.3 $ 9.3
Operating income 16.8 1.8
Net sales by reportable segments $ 217.5 $ 42.8
All other net sales 12.6 14.6
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$ 230.1 $ 57.4
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Operating income by reportable segment $ 71.7 $ 11.2
All other operating income (loss) (0.5) 4.6
Unallocated amounts:
Acquisition related charges (184.3) (3.9)
Interest and other income, net 5.5 0.9
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Income (loss) before income taxes $ (107.6) $ 12.8
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JDS UNIPHASE CORPORATION
PRO FORMA STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three months ended September 30, 1999
Pro Forma
As Reported Adjustments Pro Forma
Net sales $ 230.1 -- $ 230.1
Cost of sales(2) 125.2 (11.4) 113.8
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Gross profit 104.9 11.4 116.3
Total operating expenses(2) 218.0 (172.9) 45.1
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Income (loss) from operations (113.1) 184.3 71.2
Interest and other income, net 5.5 -- 5.5
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Income (loss) before income taxes (107.6) 184.3 76.7
Income tax expense(2) 6.3 19.0 25.3
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Net income (loss) $ (113.9) $ 165.3 $ 51.4
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Net income (loss) per share $ (0.68) $ 0.30
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Net income (loss) per share,
diluted basis $ (0.68) $ 0.29
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Number of weighted average
shares outstanding 168.5 168.5
Number of weighted average shares
and equivalents 168.5 179.5
Three months ended September 30, 1998
JDS Pro Forma
Uniphase FITEL Adjustments Pro Forma
Net sales $ 57.4 $ 55.2 -- $ 112.6
Cost of sales 28.9 26.3 1.0 56.2
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Gross profit 28.5 28.9 (1.0) 56.4
Total operating expenses(2) 16.6 11.8 (4.9) 23.5
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Income from operations 11.9 17.1 3.9 32.9
Interest and other income,
net 0.9 1.6 -- 2.5
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Income before income taxes 12.8 18.7 3.9 35.4
Income tax expense(2) 4.7 6.9 0.6 12.2
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Net income $ 8.1 $ 11.8 $ 3.3 $ 23.2
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Net income per share $ 0.15
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Net income per share,
diluted basis $ 0.14
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Number of weighted average
shares outstanding 157.3
Number of weighted average
shares and equivalents 168.1
(2) Fiscal 2000 pro forma adjustments reflect the exclusion of
acquisition-related charges, including the effect on gross profit of
the P. purchase accounting increase in JDS FITEL inventory at June 30,
1999, and amortization of purchased intangibles. These pro forma
adjustments also reflect the impact of acquisition-related charges on
income tax expense. Fiscal 1999 pro forma adjustments combine the
separately reported results of JDS FITEL Inc. and Uniphase
Corporation. Fiscal 1999 pro forma adjustments to cost of sales also
include reclassifications to conform treatment of certain JDS FITEL
costs.
FOR FURTHER INFORMATION PLEASE CONTACT:
JDS Uniphase Corporation
Kevin N. Kalkhoven
(408) 434-1800
or
JDS Uniphase Corporation
Anthony R. Muller
(408) 434-1800 |
