April 21, 2005 San Jose, CA -- JDS Uniphase (JDSU), a provider of components, modules, and subsystems for communications and other applications, has announced what it calls a milestone in its strategy to achieve profitability by reducing costs and eliminating non-core products.
Specifically, according to a press release, the company will:
* Consolidate the functions of its Ewing, NJ and Melbourne, FL manufacturing operations into its facility in Shenzhen, China, and into the facilities of two contract manufacturing partners.
* Transfer its manufacturing facilities in Ewing and Mountain Lakes, NJ to Fabrinet, one of the company's key manufacturing partners.
* Reduce manufacturing operations in Santa Rosa, CA, in association with the phasing out of certain display products, including high-volume consumer light engines and coated micro display windows.
The company expects its facility transfers to Fabrinet to be completed by the end of the current quarter (June 30, 2005), with the remaining actions set for completion by the end of the second quarter of fiscal 2006 (December 31, 2005).
The company says the announced actions will significantly consolidate its North American manufacturing operations. By the end of the year, the company expects to reduce its manufacturing ranks by more than 15%, eliminating approximately 700 positions, plus 150 support positions. Research and development will continue at all sites, except Mountain Lakes, according to the company.
"These initiatives are part of a multi-quarter business transformation strategy for JDS Uniphase to achieve profitability by reducing cost structure and improving corporate agility," explains Kevin Kennedy, president and CEO of JDSU. "We firmly believe that our ability to restructure major operations and rationalize our current portfolio, while investing in next-generation products, positions JDS Uniphase for success, and differentiates us from the competition."
In a separate announcement, the company confirmed that it expects to achieve previously provided financial guidance for the third quarter of fiscal 2005, which forecasted revenue in the range of $155 to $165 million, and a non-GAAP loss per share of approximately two cents.