UPDATE 1-JDS Uniphase 1st-qtr forecast falls short of expectations
(Adds analyst comment)
By Subrat Patnaik
Aug 12 (Reuters) - Network equipment maker JDS Uniphase Corp forecast first-quarter adjusted revenue and profit below market expectations, sending the company's shares down as much as 7.6 percent in extended trading.
The weak forecast is a result of order delays in the company's network service business, its largest, because of a spate of consolidations, UBS Equities analyst Amitabh Passi said.
Other network gear makers, too, are facing delays in orders as telecom and cable service providers hold back on spending while they work their way through a wave of mergers and acquisitions.
AT&T Inc $48.5 billion bid for DirecTV and Comcast Corp's $45.2 billion offer for Time Warner Cable Inc are awaiting regulatory approvals in the United States.
Last month, rival Juniper Networks Inc forecast revenue and profit below analysts' expectations for the ongoing quarter, citing delays in closing the sale of its routing devices to some customers in North America.
JDS Uniphase said that on an adjusted basis, it expects profit to range between 8 cents and 12 cents per share on net revenue of $405-$425 million in the first quarter ending Sept. 27.
Analysts on average were expecting earnings of 14 cents per share on revenue of $440.9 million, according to Thomson Reuters I/B/E/S.
JDS Uniphase makes instruments and testing tools to deploy and optimize communications equipment and broadband networks for customers such as AT&T Inc, Time Warner Cable Inc and Verizon Communications Inc.
For the fourth quarter ended June 28, the company reported better-than-expected revenue and adjusted profit, largely helped by growth in its network service and optical products businesses.
Net loss attributable to JDS Uniphase was $25.4 million, or 11 cents per share, compared with a net profit of $92.5 million, or 38 cents per share, a year earlier, when the company benefited from a tax gain.
On an adjusted basis, JDS Uniphase earned 14 cents per share.
Revenue rose to $448.6 million from $421.3 million.
Analysts on average were expecting earnings of 13 cents per share on revenue of $436.8 million.
Shares of the company closed at $11.91 on the Nasdaq on Tuesday. (Additional reporting by Lehar Maan; Editing by Saumyadeb Chakrabarty and Feroze Jamal)
Trending On Reuters
We are living longer but not creating financial plans to keep pace. Advisers give tips on how to make sure you don’t outlive your money. Video