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JDS widens write-downs
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September 19, 2001: 11:43 a.m. ET
Fiber-optic equipment maker expects charges from early goodwill reduction
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NEW YORK (CNNfn) - JDS Uniphase said Wednesday it would take more write-downs of the value of its long-term assets, which could add another $5.3 billion to the $50.6 billion loss it logged in its last fiscal year.
The company, which is the No. 1 supplier of components used to build fiber-optic network equipment, said it had completed a review of the carrying value of its long-term assets and would record another $4.2 billion in goodwill write-downs for its fiscal fourth-quarter, which ended June 30.
JDS Uniphase also said it would record another $1.1 billion in goodwill write-downs the fiscal third quarter, which ended March 31.
The company also anticipates additional write-downs for the quarter ending Sept. 29. JDS has declined to give financial guidance for current quarter, saying only that it expects sales to fall below earlier guidance of $450 million. Restructuring efforts should result in break-even financial results at a sales level of $350 million, executives have said.
JDS Uniphase has been logging huge losses in recent quarters, faced with a swift and sudden slowdown in demand for fiber-optic networking equipment as telecom and Internet service providers pared back spending amid slowing and uncertain economic conditions.
During its fiscal fourth-quarter, JDS Uniphase recorded a net loss of $7.9 billion, or $5.99 per share, on revenue of $601 million. For the full year, losses totaled $50.6 billion, or $46.30 per share.
The company responded to the weakness in its end market by restructuring its operations, including the elimination of 16,000 jobs that it expects will save $700 million in annual expenses.
Shares of JDS Uniphase (JDSU: up $0.01 to $5.36, Research, Estimates), one of Wall Street's darlings in late 1999 and 2000, were down modestly in late-morning Nasdaq trade Wednesday.
Shares of JDS have lost more than 43 percent since its fourth-quarter results were released in late July. 
-- from staff and wire reports
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