JDSU

Infobox_Company
company_name = JDSU
company_
company_type = Public (NASDAQ|JDSU) (TSX|JDU)
foundation = Merger of JDS Fitel and Uniphase Corporation in 1999
location = Milpitas, California, United States
key_people = Kevin Kennedy, President & CEO
David Vellequette, Chief Financial Officer
industry = Optical products and broadband communications
products = Communications test and measurement equipment; optical communications components, modules, and subsystems.Lasers used for biotechnology, semiconductor manufacturing, and materials processing.

Thin film coatings, components, and assemblies used to manage light for displays, instrumentation, office automation, and aerospace/defense. Optical solutions for brand protection and document authentication; and decorative coatings for brand enhancement and differentiation
num_employees = ~7,000 (2008)
locations = 80 offices, serving customers in more than 160 countries

Lasers used for biotechnology, semiconductor manufacturing, and materials processing.

Thin film coatings, components, and assemblies used to manage light for displays, instrumentation, office automation, and aerospace/defense.

Optical solutions for brand protection and document authentication; and decorative coatings for brand enhancement and differentiation. | net_income = profit$1.4 Billion USD (FY2008)
homepage = [http://www.jdsu.com/ www.jdsu.com]

JDSU nasdaq|JDSU is a company that designs and manufactures products for optical communications products, communications test and measurement equipment, lasers, optical solutions for authentication and decorative applications, and other custom optics. It is headquartered in Milpitas, California, USA. It was formerly known as JDS Uniphase, prior to a rebranding of its corporate image on September 14, 2005. The legal entity is now called JDS Uniphase Corporation, whereas elsewhere the company always refers to itself as JDSU.

History

JDSU was formed by the 1999 merger between two fiber optic companies, JDS FITEL and Uniphase Corporation, and became known as JDS Uniphase subsequent to the merger. In 1981, JDS Fitel was founded by Jozef Straus, Philip Garel-Jones, Gary Duck, and Bill Sinclair. The "JDS" is short for Jones, Duck and Sinclair. JDS Uniphase had two corporate headquarters, one at 3000 Merivale Road, Ottawa and the other in San Jose, California. Three other major fiber companies merged with JDS Uniphase during the telecom boom: OCLI based in Santa Rosa, California, and E-TEK Dynamics and SDL, both based in San Jose, California. With the downturn in the telecom business that started in 2000, JDSU moved its headquarters first to San Jose, California, and then in 2006 to nearby Milpitas.

JDS Uniphase stock was a high-flyer tech stock investor favorite. Its stock price doubled three times and three stock splits of 2:1 occurred roughly every 90 days during the last half of 1999 through early 2000, making millionaires of many employees who were stock option holders, and further enabling JDS Uniphase to go on an acquisition and merger binge. After the telecom downturn, JDS Uniphase announced in late July 2001 the largest (up to then) write-down of goodwill and business losses in business history: $45 billion. Employment soon dropped as part of the Global Realignment Program from nearly 29,000 to approximately 5,300, many of its factories and facilities were closed around the world, and the stock price dropped from $153 per share to less than $2 per share. Especially hard-hit were the R&D activities and researcher jobs related to producing new OC-768 (40 Gbit/s) and OC-192 (10 Gbit/s) products, which were largely terminated in light of the shift in market interest to continuing with legacy OC-48 (2.5 Gbit/s) data rate products.

The logo of the former JDS Uniphase was an open multi-colored box, intended to evoke a feeling of thinking "outside the box" among employees. The logo of the new re-branded JDSU represents the cycle of innovation that begins and ends with the customer.

On September 23, 2005, JDSU announced a reverse stock split one-to-eight to one-to-ten. [http://biz.yahoo.com/ap/050923/jds_uniphase_reverse_split.html?.v=1] On December 2, 2005 JDSU stock holders authorized the reverse stock split after its 2005 annual meeting.

Epitaxx was absorbed by JDS Uniphase in the 1990s; Alka Swanson was the General Manager of this branch of the corporation.

As of March 2006, JDSU stock has been making somewhat of a rebound. Analysts like Jim Cramer laud the stock, citing the new interests that telecommunications companies now have in optical fiber telephone and Internet services, will bring a rebirth to this once reeling company. Verizon FiOS is an example of a fiber optic service that may benefit JDSU in the future.

hareholder litigation

After the 2001 crash of the telecommunications industry, the state of Connecticut filed a lawsuit against the company and four key executives, claiming that they had, and hid from company shareholders, advance knowledge of the company's impending downturn. Unlike most similar lawsuits, which are dismissed or settled before trial, Connecticut's lawsuit went to trial in October, 2007. JDSU was acquitted of all charges in November, 2007. [cite news|publisher=San Jose Mercury News|accessdate=2007-10-22|title=JDS collapse headed for court|author=Chris O'Brien|date=October 21, 2007|url=|http://www.siliconvalley.com/news/ci_7240763]

Acquisitions

JDSU has continued to add to its offerings through acquisitions, which include:

"2008 Acquisitions"

American Bank Note Holographics, Inc. In February 2008, JDSU purchased ABNH, a company that originated, produced, and marketed holograms for security applications, and supplied optical security devices for the transaction card market. It is part of the JDSU Advanced Optical Technologies business.

Westover Scientific, Inc. In January 2008, JDSU purchased Westover Scientific’s Fiber Optic Division, adding fiber optic inspection and cleaning solutions to JDSU’s existing fiber field and lab and production test portfolio in its Communications Test and Measurement segment.

"2007 Acquisitions"

Innocor Ltd. In May 2007, JDSU purchased Innocor, a provider of broadband test solutions for network equipment manufacturers. The merger strengthened JDSU’s position in the North American lab and production markets and helped grow the company’s business in the Europe-Middle East-Africa and Asia and Pacific regions. Innocor was included in JDSU’s Communications Test and Measurement segment.

Picolight, Inc. In May 2007, JDSU acquired Picolight, a designer and manufacturer of optical pluggable transceivers. The acquisition of Picolight strengthened the company’s position in high-growth pluggable optics for the enterprise market and added an established, vertically integrated manufacturing model. Picolight was added to the JDSU Optical Communications segment.

Casabyte, Inc. In January 2007, JDSU acquired Casabyte, a provider of service quality monitoring solutions for mobile network operations. The acquisition of Casabyte accelerated the company’s service assurance growth by capitalizing on a number of key assets, including Casabyte’s wireless service quality solutions expertise, technology and established customer relationships. Casabyte was included in the JDSU Communications Test and Measurement business.

"2006 Acquisitions"

Test-Um, Inc.In May 2006, JDSU purchased Test-Um, a provider of portable test, talk and trace products for datacom and communications networks. The acquisition established JDSU as a leader in the growing market for home and enterprise network testing. Test-Um is a well-known manufacturer of high-quality, low-cost instruments used in the field to troubleshoot, test, map and certify various types of networks. Test-Um is included in the JDSU Communications Test and Measurement segment.

Agility Communications, Inc.In November 2005, JDSU completed the acquisition of Agility Communications, Inc., a provider of widely tunable laser solutions for optical networks. The acquisition boosted JDSU’s position in tunable lasers and transponders, and offered a path to efficient high-volume, high-yield, tunable, pluggable solutions when combined with JDSU’s manufacturing scalability. The acquisition established JDSU as an agile optical network provider. Agility was included in the JDSU Optical Communications segment.

"2005 Acquisitions"

Acterna, Inc.In August 2005, JDSU completed the acquisition of Acterna, Inc., a provider of broadband and optical test and measurement solutions for telecommunications, cable service providers, and network equipment manufacturers, including many of the largest 100 telecommunications, cable services providers, and system manufacturers worldwide. The combined companies’ products and services support the deployment of IP-based data, voice, and video services over optical long haul, metro, fiber-to-the-home, DSL, and cable networks. The addition of Acterna led to the creation of the JDSU Communications Test and Measurement business.

Photonic Power Systems, Inc.In May 2005, JDSU acquired Photonic Power Systems, a provider of photonic power for the delivery of power over fiber. Photonic power is a power delivery system whereby light from a laser source travels over fiber to its destination where it is then is changed to electricity using a highly efficient photovoltaic power converter. The acquisition provided a solution to remote powering for many commercial applications, including medical, wireless communications, electrical power, industrial sensor, and aerospace applications.

Lightwave Electronics CorporationIn April 2005, JDSU completed the acquisition of Lightwave Electronics Corporation, a provider of solid-state lasers for commercial markets such as materials processing, semiconductor fabrication, and biotechnology. With the acquisition of Lightwave, JDSU added solid-state lasers that range from low-to-high powers and ultraviolet, visible, and infrared wavelengths to its high power single emitter laser diodes, fiber lasers, argon ion, and helium neon lasers. Press Release

Other Significant AcquisitionsE2O Communications, Inc.In May 2004, JDSU acquired E2O Communications, Inc., a developer and manufacturer of optical transceivers to support Fast Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet, 1X-4X Fibre Channel, 10 Gigabit Fibre Channel, ESCON, ATM and SONET.

LA LabelIn January 2003, JDSU completed the acquisition of LA Label, a producer of pressure-sensitive labels for a variety of industrial and commercial applications, including custom labels, tags, and tickets to distributors and the printing trade. This acquisition allowed JDSU SecureShift pigment technology to be integrated into labels and packaging that protect brand-name consumer goods from counterfeiting.

OptronX—Optical Transceiver/Transponder BusinessIn September 2002, JDSU acquired OptronX's business of small form factor, low power consumption, microprocessor-based transceiver designs. The acquisition added uncooled 10 Gbit/s short reach (SR) and very short reach (VSR) transponders to the JDSU transmission module portfolio, which also includes other reaches for telecommunications, a XENPAK module for data communications for 10 Gbit/s data-rate applications, as well as modules for applications at other data rates.

Scion Photonics, Inc.In April 2002, JDSU acquired Scion Photonics, Inc., a leading provider of application-specific photonic solutions based on planar lightwave circuit manufacturing using 200 mm wafers, advanced packaging, and automated fiber interfacing capabilities. The addition of Scion’s extensive knowledge and experience in semiconductor manufacturing, specifically chemical vapor deposition (CVD), and optical materials technology, allowed JDSU to deliver silica-based waveguide devices.

IBM Optical Transceiver BusinessIn January 2002, JDSU acquired the IBM Optical Transceiver business (formerly the IBM Transport Business Line), a provider of high-quality, high-performance, leading-edge optical products supporting host-to-host and high-speed interconnects within a system. IBM's optical data communications products included small form factor (SFF) transceivers and Gigabit Interface Converters (GBIC) for storage area networks (SAN) and local area networks (LAN) using optical Fiber Channel and Gigabit Ethernet protocols. The acquisition allowed JDSU to design and develop standards-compliant 1 through 10 gigabit data communications transceivers. The patented latch designs are especially useable for the hot pluggability needed to achieve maximum network up-time or higher manufacturing yields.

SDL, Inc.In February 2001, JDSU completed the acquisition of SDL, Inc. a maker of products that power the transmission of data, voice, and Internet information over fiber optic networks for telecommunications, data transmission, dense wavelength division multiplexing (DWDM), and cable television applications. These products allowed customers to meet the bandwidth needs of increasing Internet, data, video, and voice traffic by expanding their fiber optic communications networks more quickly and efficiently than was possible using conventional electronic and optical technologies.

E-TEK Dynamics, Inc.In June 2000, JDSU acquired E-TEK Dynamics, Inc., a producer of wavelength division multiplexers (WDMs) designed to increase the bandwidth capacity of fiber optic networks. E-TEK also produced components such as isolators, couplers and integrated optics used in optical communications systems, terrestrial and submarine long-haul fiber optic networks, and short-haul networks, such as metro and cable.

Optical Coating Laboratory, Inc.In February 2000, JDSU completed the acquisition of Optical Coating Laboratory, Inc., a manufacturer of optical thin film coatings and components used to control and enhance light propagation to achieve specific effects, such as reflection, refraction, absorption, and wavelength separation. This functionality is essential in the fiber optic telecommunications industry and other important markets. As the demand for bandwidth continues to the drive the need of system manufacturers to increase the number of wavelengths in their wavelength division multiplexing (WDM) systems, optical thin film coating technology is increasingly important.

Oprel Technologies Inc.In December 1999, JDSU acquired Oprel Technologies, whose product line included erbium-doped fiber amplifiers (EDFA) for fiber optic networks, as well as test equipment for optoelectronic devices. Oprel also developed packaging for devices, including DFB laser diodes, high-temperature and high-power laser diodes, and semiconductor optical amplifiers.

EPITAXX, Inc.In November 1999, JDSU acquired EPITAXX, Inc., whose products includes long wavelength detectors and receivers used for dense wavelength division multiplexing (DWDM) and SONET/SDH transmission, optical network monitoring for terrestrial and undersea networks, test and measurement, and fiber optic analog CATV.

IOT GmbHIn 1999, JDSU acquired IOT Integrated Optical Technology GmbH, a company located in Waghaeusel Germany. The company products are PLC waveguide splitter modules based on ion exchange in glass, and PLC DWDM modules leveraging silica on silicon substrates.

Litigation References

1. Dan Levine. "JDS Uniphase Scores a Win in Securities Case," Law.com, November 28, 2007

2. Kevin M. Lacroix. “Defense Verdict in JDSU Securities Trial,” The D&O Diary, November 27, 2007

3. Stanford Law School Securities Class Action Clearinghouse, November 2007

External links

* [http://www.jdsu.com/ JDSU]
* [http://finance.groups.yahoo.com/group/JDSU-/ JDSU JDS Uniphase Message Board] Active community of JDSU investors and watchers.