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.

Gold/Mining/Energy : JDS Fitel -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (304)	7/23/1998 12:20:00 PM
From: Chris Stovin	Read Replies (1) \| Respond to of 815

Sorry Pat, I'm not sure how to copy a link...so here is the copied story from the Ottawa Sun Thursday, July 23, 1998 JDS Fitel profits soar By SUSAN TAYLOR, Ottawa Sun ÿ JDS FITEL has closed the book on a banner year that saw profit soar 112% and revenue up 98% over fiscal 1997. In its fourth quarter, ending May 31, the Nepean-based firm recorded a profit of $13.9 million, 18cents a share, on sales of $66.9 million. Net earnings were up 66% over the same period last year while revenue rose 65%. For 1998, JDS recorded sales of $227.2 million, up from $115 million last year. Net income, meantime, came in at $47.6 million, 64cents a share, up from $22.5 million last year. Those results beat consensus estimates from analysts which pegged profit for the quarter at 16cents and for the year at 60cents. "That was nicely above (estimates), but not so far out that people are thrown for a tailspin," said Zita Cobb, chief financial officer. Some Bay Street analysts said there was concern that revenue would not reflect the level of growth JDS is known for, or show strong gross margins. But the fibre-optic maker proved those fears wrong, showing impressive sales increases and margins. Strong demand drove growth in the firm's three product areas. "No question, there's still an incredible thirst for bandwidth," said Cobb. The component and modules division -- the firm's main product area -- represented $147.9 million in sales during the year, up 111% over the $70 million recorded last year. Instruments products drew $47.4 million, up 111% from $22.4 million in sales last year. The resale division drew $31.8 million for the year, up 41% from $22.5 million in 1997. The U.S. continues to be the main base for JDS sales, representing 74% of all revenue. Europe pulled in about 15% of sales, followed by 7% for Asia Pacific and 3% for Canada. "Our strategy going forward will continue to emphasize the breadth of our product portfolio, the depth of our technology base and the strength and flexibility of our manufacturing infrastructure," said chief executive Jozef Straus. Despite the stellar results and strong demand, JDS has seen sluggish action on the stock market recently. "The stock really hasn't performed this year," said Gurinder Parhar, an analyst with HSBC James Capel Canada in Toronto. That's despite a huge growth surge from the firm's leading customers, such as telecommunications giants Nortel, Lucent Technologies, and Ciena. "From a company perspective, they've performed," Parhar said. "I'm very happy." Parhar had set a 16cents target for the quarter and has a $35 target for the stock in the next 12 months. Recently, JDS has made headlines as three unions lobby to represent non-management staff. "It's pretty difficult to speculate on," Cobb said of how that may impact the business. "We don't really want a union. We don't think it's going to enhance the business or lives of our employees." Many of the firm's manufacturing and semi-skilled staff earn between $9 and $13 an hour. "What investors would be concerned about is does it provide less flexibility," Parhar said of unionized staff. Increased labor costs could also be an issue. The stock, which closed trading before the results were released, rose 80cents yesterday to close at $28.40 on the Toronto Stock Exchange. Previous story: Ottawa misses out on convention profits

To: pat mudge who wrote (304)	7/23/1998 2:09:00 PM
From: N Zucco	Read Replies (1) \| Respond to of 815

Pat, Here is the Citizen story from today. JDS growth train still on track Fibre-optic specialist beats estimates, delivers record fourth quarter James Bagnall The Ottawa Citizen JDS Fitel: Fiscal revenue and earnings: Revenue - $227.2 million, Earnings - $47.6 million JDS Fitel Inc. turned in another stellar quarter yesterday, firmly establishing itself as one of this region's most consistent growth companies. The Nepean-based manufacturer of fibre-optic components recorded a 67-per-cent surge in net profits to $13.9 million, or 17 cents a share, in its fourth quarter ended May 31. This compares with $8.3 million, or 11 cents a share, for the year-earlier period. It also marks the seventh straight quarter in which JDS profits have topped a very healthy 20 per cent of sales. This is a record unmatched by any publicly traded firm in the Ottawa region. Fourth-quarter sales were also robust. They jumped 65 per cent to a record $66.9 million from $40.6 million a year earlier. JDS exceeded the mean estimate of 16 cents a share of four analysts surveyed by IBES Inc. The fibre-optic technology specialist also blew by analysts' revenue projections. "JDS is in a great market and executing its game plan very well," said Kevin Slocum, a financial analyst with SoundView Financial Group. "There is nothing in these results that would swing me away from my earlier recommendations." Mr. Slocum is one of the few U.S.-based analysts to track JDS, which trades only on the Toronto Stock Exchange. He issued a "buy" recommendation last month when JDS shares were trading at $26.75 and predicted they will reach $38 by next June. JDS shares closed yesterday at $28.40, up 80 cents. The company released its quarterly results after the markets closed. The strong fourth quarter contributed to a record financial year for JDS. Net earnings were up 112 per cent to $47.6 million, or 62 cents a share, while revenues jumped 98 per cent to $227.2 million in fiscal 1998. Growth was strong in all three of the company's main operating units. Sales of fibre-optic components, used to increase capacity in large telecommunications networks, were up 111 per cent from fiscal 1997. JDS also makes instruments that measure the performance of fibre-optic products. The division that produces these also reported a 111-per-cent jump in revenues. The company's resale unit, which distributes various products made by third parties, was comparatively anemic, recording a 41-per-cent increase in sales. This division accounts for less than 15 per cent of company revenues and therefore had a relatively small impact on the final growth numbers. One of the big puzzles about JDS, at least as far as investors are concerned, is why its share price has drifted of late. After peaking at $31.67 last Oct. 14, JDS shares have sagged. They've been trading mainly between $22 and $28, showing little sign of resuming a steady upward trajectory. Part of the explanation lies with the company's pattern of growth. Year-over-year revenue increases peaked at 139 per cent in the first quarter, and this has proved a tough act to follow. To a certain extent, JDS is falling victim to the law of large numbers --Ethe greater its size, the more difficult it is to sustain rapid growth. And from the first to the fourth quarter, the company's year-over-year sales momentum slowed by half. This sort of pattern is true of all fast-moving technology firms, but the swings for JDS have been especially pronounced. Yet, even though growth rates are likely to continue falling, Mr. Slocum does not view this as cause for concern. The SoundView analyst predicts JDS sales and earnings will improve by 35 per cent to 45 per cent annually "over the next few years" --Ea pattern that would produce a $625-million-per-year giant by fiscal 2001. The fiscal 1998 results provide a good base for getting there.