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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: Chris Stovin who wrote (184)	4/15/1999 6:20:00 AM
From: Glenn McDougall	Respond to of 24042

JDS Fitel profits soar Nepean firm's third-quarter results up 119% over last year By SUSAN TAYLOR, Ottawa Sun JDS FITEL Inc. turned in another trademark financial performance yesterday, releasing third quarter results that blew by analysts' expectations. The Nepean firm, whose technology is used in the growing fibre-optic communications market, reported a profit of $26.7 million -- 34cents a share -- on sales of $122.6 million. The consensus of 14 brokers polled by First Call Corp. was 27cents for the quarter ended Feb. 28. The results represent a 109% sales boost and 119% profit increase over the same period last year. In the third quarter of 1998, JDS reported a profit of $12.2 million -- 16cents a share -- on sales of $58.5 million. "Picture in your mind what it takes to do this kind of growth quarter after quarter," said chief financial officer Zita Cobb. "It's just been an incredible place to be." The U.S. continues to drive the bulk of sales -- 82% -- while Europe represents 14% of the total and other regions 4%. A blistering telecommunications industry is driving sales growth for JDS technology. The component and module products brought in $99 million, up 163% over the same period last year. Instruments technology sales came in at $16.7 million, up 39% over the third quarter in 1998. Resale products -- which JDS supplies to customers to provide complete technical solutions -- fell from $8.9 million to $7.2 million. The market likely expected good news from JDS after E-Tek Dynamics Inc., a comparable firm, Tuesday beat estimates of 11cents per share with 14cents per share results. "Traditionally, JDS has been a stronger company than E-Tek and has had stronger growth," said Emil Savov, an analyst with Goepel McDermid Inc. Savov said he is a strong supporter of JDS, but recently changed his rating from buy to accumulate because of the high share price. High valuations can make companies vulnerable to stock market fluctuations, he said. JDS stock has been on a recent tear. Just two weeks ago, the stock was trading at $83.50. Yesterday, the stock climbed $4.75 to end the session on the TSE at $96.25, a 5% increase, before the results were released. Increased interest may also be tied to market demand for everything Internet. "A lot of people are saying the real way of benefiting from the Internet phenomena is to invest in the companies building the infrastructure, not the companies selling the products," Savov said. JDS is basking in a brighter market spotlight after announcing plans to merge with California-based Uniphase Corp. The deal is expected to conclude in late June without any hurdles. "It's moving along quite well," said Cobb. "We're certainly enjoying getting a more intimate knowledge of our new partner." During the third quarter, JDS moved several hundred staff into the first phase of its new headquarters on West Hunt Club Rd. The company now has about 3,400 staff. A second phase of the campus -- a 239,000-sq.-ft. building -- is under construction for manufacturing and R&D.