JDS Uniphase Corporation F4Q09 (Qtr and Yr End 27/06/09) Earnings Call Transcript

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2009-08-19 18:47:34.0

Tags: JDS Uniphase, Broadband, Call Transcript, Earnings, Mark Sue, RBC Capital Markets, Wireless, Broadband Internet, Network Technology, Telecommunications, Wi-Fi, Wireless And Mobility, Networking, Seeking Alpha

Question-and-Answer Session

Operator

Your first question comes from Mark Sue - RBC Capital Markets.

Mark Sue - RBC Capital Markets

Tom, from your commentary it seems you may be more inclined to add to your testing product portfolio, should we assume more acquisitions particularly maybe in wireless? Does it mean any subsequent optical communications divestitures in the future and then separately, just your high level thoughts on what the incremental opportunity maybe for JDSU as it relates to the broadband stimulus bill. If you could kind of have frame that for us that would be great. Thank you.

Tom Waechter

As you know, we have been pretty active in the M&A market. We continue to evaluate the market and we look that across all of our business units because we think there are opportunities out there across the Board. So wireless is an interesting area for us as I mentioned during the call that we do benefit on the fixed backhaul and back into the core network.

We’re looking to see if there are opportunities where we can get directly involved in the wireless transmission test as well, so that is of interest to us. I think as far as the broadband stimulus packages, I think are really just starting to rollout in the U.S. in August. There are some stimulus packages also in Australia that we believe we’ll participate in, so we have stayed close to that situation. We think we’ll be able to benefit from some of the stimulus rollout as it starts happening here in the near future.

Operator

Your next question comes from Subu Subrahmanyan - Sanders Morris Harris Group.

Subu Subrahmanyan - Sanders Morris Harris Group

My question is related to optical comp. You’d mentioned inventory depletion by some of the customers. Does that seem to be complete at this point especially on the ROADM front and then if you look at your sequential growth guidance, obviously some of that is coming from the tools business addition, but it sounded like you were suggesting there’s probably more growth in test and measurement in the near term was Optical Comm. So I was just trying to understand that better.

Tom Waechter

I think as far as the Optical Comm and our customers with bleeding through their inventory. We do believe that has accelerated to some degree as we’ve looked at the last couple of months here and particularly in ROADMS, that was an area where a customer or two of ours, larger customers that we do high volume ROADM business with were definitely still working through some inventory on hand.

 

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