Has The Optical Worm Turned?


The recent demand for bandwidth spurred on by more broadband connections, wireless users and 3G might be finally working its way to the bottom of the food chain. JDS Uniphase, one of those bubble era optical networking companies that bought other companies for breakfast, has been making encouraging noises about their business. JDS makes optical components, and its new CEO recently told Wall Street that he expects revenues to $300 – $320 million in the next quarter. (Oh lord how the mighty have fallen. This is the same company that once bought a rival for a whopping $41 billion without breaking a sweat or running a spreadsheet!) In the most recent quarter, the company posted its strongest gross margin improvement in three years, from 17.6 to 32%. Much of strength, the company says is coming from expansion of fiber optic networks by service providers such as SBC and Verizon. The company says it is seeing better demand for its integrated and intelligent modules and subsystems. I will chat with Kevin and find out more details soon.



The chatter on CNBC about JDS Uniphase is also getting louder. Are startups like Infinera going to eat JDS for breakfast this time round?

Jesse Kopelman

When I think of JDSU I often think that this stock almost single handedly destroyed many a Janus mutual fund. Then I think about all the money I would have if that were not the case . . .

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