JDS Uniphase Announces Third Quarter Results
Tuesday, April 25, 2000 04:01 PM
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Sales Increase 40% From Second Quarter
NEPEAN, Ontario, and SAN JOSE, Calif., April 25 /PRNewswire/ -- JDS Uniphase
Corporation (Nasdaq: JDSU, news, msgs; TSE: JDU) today reported sales for its third
quarter ended March 31, 2000 of $394.6 million, and pro forma net income of $85.8
million or $0.11 per diluted share. Sales for the nine months ended March 31, 2000
were $906.4 million.
Sales for the quarter were 40% higher than net sales of $281.7 million for the quarter
ended December 31, 1999, and 155% above pro forma combined sales of $154.9
million for the quarter ended March 31, 1999. Sales for the nine months ended March
31, 2000 of $906.4 million were 129% above pro forma sales for the comparable prior
year period. Pro forma sales for the prior year 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
include those of Optical Coating Laboratory, Inc. (OCLI), Epitaxx, Inc. and Sifam Ltd.,
which were acquired in transactions accounted for as purchases on February 4, 2000,
November 15, 1999, and December 16, 1999, respectively.
Including merger-related and purchased intangibles amortization charges, the
Company reported a loss of $240.9 million or $0.32 per share for the quarter and
$485.9 million or $0.70 per share for the first nine months of fiscal 2000.
JDS Uniphase generated $92.1 million in cash flow from operations for the quarter.
The Company invested $77.4 million in capital expenditures during the quarter in
connection with its global capacity expansion.
On a pro forma basis, excluding merger-related charges and the amortization of
purchased intangible assets, JDS Uniphase reported net income of $85.8 million or
$0.11 per share for the quarter, an increase of 31% over the $65.7 million or $0.09 per
share for the quarter ended December 31, 1999. Pro forma net income for the nine
month period ended March 31, 2000 was $202.9 million or $0.27 per share, an
increase of 144% from the $83.2 million or $0.12 per share earned in the prior year's
comparison period. The impact of excluded acquisition, divestiture and amortization
costs is summarized in the Company's pro forma financial tables that follow in this
release.
The following table summarizes pro forma results for the quarter:
(in millions, except per share amounts) Three months ended
March 31,
2000 1999
Net sales $394.6 $154.9
Gross profit 204.9 79.4
Income from operations 122.6 48.5
Income before income taxes 132.6 50.7
Net income $85.8 $33.2
Net income per diluted share $0.11 $0.05
Diluted weighted average shares outstanding 814.3 683.2
Pro forma results for the quarter ended March 31, 2000 exclude the $12.4 million
effect on gross profit of the purchase accounting increase in OCLI inventory at
February 4, 2000, an $84.1 million acquired in-process research and development
charge recorded in connection with the OCLI acquisition, and $249.6 of purchased
intangibles amortization. Fiscal 1999 pro forma results combine the separately
reported results of JDS FITEL Inc. and Uniphase Corporation. Pro forma results for the
quarter ended March 31, 1999 exclude $3.9 million of purchased intangibles
amortization, $0.5 million resulting from a change to estimated costs recorded in
connection with the Ultrapointe asset sale on December 31, 1998, 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.
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.jdsunph.com.
-SELECTED FINANCIAL DATA FOLLOWS-
JDS UNIPHASE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three months ended Nine months ended
March 31, March 31,
2000 1999 2000 1999
Net sales $394.6 $74.5 $906.4 $195.7
Cost of sales 202.1 36.3 466.6 98.7
Gross profit 192.5 38.2 439.8 97.0
Operating expenses
Research and development 33.3 7.3 72.1 18.8
Selling, general and
administrative 49.1 9.1 110.7 24.5
Amortization of purchased
intangibles 249.6 3.9 607.6 11.8
Acquired in-process R&D 84.1 -- 103.7 --
Other operating expenses .5 6.8
Total operating expenses 416.1 20.8 894.1 61.9
Income (loss) from operations (223.6) 17.4 (454.3) 35.1
Interest and other income, net 10.0 .9 26.2 2.6
Income (loss) before
income taxes (213.6) 18.3 (428.1) 37.7
Income tax expense 27.3 5.5 57.8 14.4
Net income (loss) $(240.9) $12.8 $(485.9) $23.3
Net income (loss) per share $(0.32) $0.04 $(0.70) $0.07
Net income (loss) per share,
diluted basis $(0.32) $0.04 $(0.70) $0.07
Number of weighted average
shares outstanding 747.6 320.3 696.1 316.4
Number of weighted average
shares and equivalents 747.6 347.2 696.1 341.3
JDS UNIPHASE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
March 31, June 30,
2000 1999
(unaudited)
Current assets:
Cash, cash equivalents and short-term
investments $962.5 $233.9
Accounts receivable, less allowances for
doubtful accounts 261.9 120.9
Inventories 197.1 87.8
Prepaid assets and other current assets 43.1 21.0
Total current assets 1,464.6 463.6
Property, plant, and equipment, net 449.8 181.1
Intangible assets 5,827.6 3,444.2
Other assets 201.5 7.2
TOTAL ASSETS $7,943.5 $4,096.1
Current liabilities:
Accounts payable $79.5 $38.1
Accrued payroll and related expenses 80.3 27.2
Income taxes payable 48.2 37.2
Other accrued expenses 99.8 46.3
Total current liabilities 307.8 148.8
Deferred tax liabilities 457.6 318.2
Other non-current liabilities 19.8 9.8
Stockholders' equity:
Common stock and additional paid-in
capital 7,849.9 3,822.8
Accumulated deficit and other
stockholders' equity (691.6) (203.5)
Total stockholders' equity 7,158.3 3,619.3
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $7,943.5 $4,096.1
JDS UNIPHASE CORPORATION
OPERATING SEGMENT INFORMATION
(in millions)
(unaudited)
Three months ended Nine months ended
March 31, March 31,
2000 1999 2000 1999
Components:
Shipments $264.6 $44.8 $626.2 $116.1
Intersegment sales (35.0) (0.5) (81.7) (2.1)
Net sales to external customers 229.6 44.3 544.5 114.0
Operating income 94.9 14.1 216.4 33.4
Modules:
Shipments 116.5 17.6 286.8 39.6
Intersegment sales -- -- -- --
Net sales to external customers 116.5 17.6 286.8 39.6
Operating income 25.5 4.1 62.5 9.6
Net sales by reportable segments 346.1 61.9 831.3 153.6
All other net sales 48.5 12.6 75.1 42.1
394.6 74.5 906.4 195.7
Operating income by reportable
segment 120.4 18.2 278.9 43.0
All other operating income 2.3 3.6 2.2 10.6
Unallocated amounts:
Acquisition related charges (346.3) (3.9) (735.4) (11.8)
Interest and other income, net 10.0 0.4 26.2 (4.1)
Income (loss) before income taxes $(213.6) $18.3 $(428.1) $37.7
JDS UNIPHASE CORPORATION
PRO FORMA STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three months ended March 31, 2000
As Pro Forma Pro Forma
Reported Adjustments
Net sales $394.6 $394.6
Cost of sales* 202.1 $(12.4) 189.7
Gross profit 192.5 12.4 204.9
Total operating expenses* 416.1 (333.8) 82.3
Income (loss) from operations (223.6) 346.2 122.6
Interest and other income, net 10.0 10.0
Income (loss) before income taxes (213.6) 346.2 132.6
Income tax expense* 27.3 19.5 46.8
Net income (loss) $(240.9) $326.7 $85.8
Net income (loss) per share $(0.32) $0.11
Net income (loss) per share,
diluted basis $(0.32) $0.11
Number of weighted average
shares outstanding 747.6 747.6
Number of weighted average
shares and equivalents 747.6 814.3
Three months ended March 31, 1999
JDS Pro Forma
Uniphase FITEL Adjustments Pro Forma
Net sales $74.5 $80.6 $(0.2) $154.9
Cost of sales 36.3 38.6 0.6 75.5
Gross profit 38.2 42.0 (0.8) 79.4
Total operating expenses* 20.8 15.4 (5.3) 30.9
Income from operations 17.4 26.6 4.5 48.5
Interest and other
income, net 0.9 1.3 -- 2.2
Income before income
taxes 18.3 27.9 4.5 50.7
Income tax expense* 5.5 10.4 1.6 17.5
Net income $12.8 $17.5 $2.9 $33.2
Net income per share $0.05
Net income per share,
diluted basis $0.05
Number of weighted average
shares outstanding 638.0
Number of weighted average
shares and equivalents 683.2
* Pro forma results for 2000 exclude the purchase accounting impact on
gross profit and in-process R&D recorded in connection with the acquisition of OCLI
and the amortization of purchased intangibles. Fiscal 1999 pro forma results combine
the separately reported results of JDS FITEL Inc. and Uniphase Corporation. Pro
forma results for 1999 exclude the amortization of purchased intangibles, the
reclassification of certain JDS FITEL costs to cost of sales to conform treatment, and
a change to estimated costs recorded in connection with the Ultrapointe asset sale in
the quarter ended December 31, 1998. 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)
Nine months ended March 31, 2000
As Pro Forma Pro Forma
Reported Adjustments
Net sales $906.4 $906.4
Cost of sales* 466.6 $(24.0) 442.6
Gross profit 439.8 24.0 463.8
Total operating expenses* 894.1 (711.4) 182.7
Income (loss) from operations (454.3) 735.4 281.1
Interest and other income, net 26.2 26.2
Income (loss) before income taxes (428.1) 735.4 307.3
Income tax expense* 57.8 46.6 104.4
Net income (loss) $(485.9) $688.8 $202.9
Net income (loss) per share $(0.70) $0.29
Net income (loss) per share,
diluted basis $(0.70) $0.27
Number of weighted average
shares outstanding 696.1 696.1
Number of weighted average
shares and equivalents 696.1 758.4
Nine months ended March 31, 1999
JDS Pro Forma
Uniphase FITEL Adjustments Pro Forma
Net sales $195.7 $200.9 $(0.2) $396.4
Cost of sales 98.7 96.1 1.2 196.0
Gross profit 97.0 104.8 (1.4) 200.4
Total operating expenses* 61.9 40.1 (21.6) 80.4
Income from operations 35.1 64.7 20.2 120.0
Interest and other income,
net 2.6 4.4 -- 7.0
Income before income taxes 37.7 69.1 20.2 127.0
Income tax expense* 14.4 25.6 3.8 43.8
Net income $23.3 $43.5 $16.4 $83.2
Net income per share $0.13
Net income per share,
diluted basis $0.12
Number of weighted average
shares outstanding 633.4
Number of weighted average
shares and equivalents 676.3
* Pro forma results for 2000 exclude the purchase accounting impact on
gross profit and in-process R&D recorded in connection with the Epitaxx, Sifam and
OCLI acquisitions and the amortization of purchased intangibles. Fiscal 1999 pro
forma results combine the separately reported results of JDS FITEL Inc. and Uniphase
Corporation. Pro forma results for 1999 exclude the 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.
SOURCE JDS Uniphase Corporation
CONTACT: Kevin N. Kalkhoven, Co-Chairman and CEO, or Anthony R. Muller, Senior
Vice President and CFO, both of JDS Uniphase Corporation, 408-434-1800
Quote for referenced ticker symbols: JDSU
¸ 2000, PR Newswire |
