Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (42531)	9/24/2001 5:44:16 PM
From: Dealer	Respond to of 65232

JDSU--JDS Uniphase Sees Industry Stabilizing By Ian Karleff TORONTO (Reuters) - JDS Uniphase Corp. (JDU.TO) (Nasdaq:JDSU - news) shares jumped on Monday after the maker of optical components said it was seeing positive signs its industry was stabilizing, and predicted quarterly sales figures at a time when industry forecasts are rare. JDS said it expected sales for the fiscal first quarter ending Sept. 30 to be about $325 million, in keeping with previous comments its revenues in the quarter would be below earlier guidance of $450 million. ``While forecasting continues to be difficult in the current environment, we believe our ability to predict future sales has begun to improve,'' Jozef Straus, co-chairman and chief executive of JDS, said in a statement. Investors, still reeling from attacks on the World Trade Center and fearful of a recession, greeted the news with enthusiasm, bidding JDS's stock up $1.03 to close at $6.39 amid strength in tech stocks, with Nasdaq up 5 percent. ``I don't think the sales number in and of itself is any reason to get excited. But people are getting excited about the statement that things are getting easier to predict,'' said Jim Kedersha, analyst at Adams Harkness & Hill. JDS shares have dropped 87 percent since the beginning of the year, outpacing a 42-percent fall in the broader Nasdaq Composite index, as demand sagged for fiber-optic components. Kedersha said JDS's sales guidance was below his estimate of $375 million, and that Monday's news could signal order cancellations were slowing, although his checks had shown the pace of new orders still had not rebounded. Last week, Credit Suisse First Boston raised its rating on JDS shares to a ``buy,'' but cut first-quarter sales targets by 18 percent to $310 million. It said it was optimistic about JDS's ability to survive with cash reserves of $1.8 billion. JDS said job cuts were ahead of schedule, with the company's total head count now at 14,000, down from peak levels of 29,000 at the start of 2001. ``And while the downturn in our markets has not yet reversed, we believe we are beginning to see the early signs of stabilization at levels from which our industry can grow in the future,'' Straus said. Analysts polled by Thomson Financial/First Call were expecting first-quarter sales of $357.4 million, less than half the year-earlier revenue figure of $786 million. JDS has said it expected restructuring efforts to result in break-even financial results at a sales level of $350 million. It is slated to release its results on Oct. 25. Kedersha said a new emphasis on safety and cost-cutting after the Sept. 11 attacks on the United States will impact any company that depends on air travel to close sales. Prospects for JDS were also dwindling as companies cut costs in the face of an imminent recession, namely regional phone companies and incumbent national carriers who depend on the health of regional economies, he said. In addition, demand for phone gear is not nearly what it was as alternative phone companies wrestle with bankruptcy, said Kedersha. In September, JDS reevaluated the carrying value of its long-term assets, adding another $4.2 billion in goodwill write-downs for its fiscal fourth quarter ended June 30, and another $1.1 billion for the third quarter ended March 31. The company expects to take additional write-downs for the first quarter because of the decline in its market capitalization since June 30.