Epoch Partners Issues Research Note on JDS Uniphase Corporation

JDSU Meets Expectations; Realigns Businesses



Apr 25, 2001, 01:00 ET from Epoch Partners, Inc.

    SAN FRANCISCO, April 25 /PRNewswire/ -- Epoch Partners today announced it
 has issued a Research Note on JDS Uniphase Corporation (Nasdaq:   JDSU). The
 Note is available for free to investors through the Epoch Web site
 (www.epoch.com).
     The Research Note, issued by Mark Langley, Senior Research Analyst for
 Communications Equipment Subsystems, discusses the current investment thesis
 of JDS Uniphase Corporation. Highlights from the report include the following:
 
     -- JDS Uniphase announced its fiscal 3Q earnings two days
        ahead of schedule, with revenues of $920 million and EPS of
        $0.14, in line with our and Street expectations.
     -- The early announcement was prompted by a global
        realignment program that includes job cuts (5,000 employees
        or 20% of the workforce), 25 building closures, and total
        charges of $375-$425 million.
     -- The company continues to see a downturn in carrier
        capital spending and estimates that customer inventory
        reductions could be completed by the end of the June or
        September quarter.  Revenue guidance for fiscal 4Q was
        lowered to $700 million (a sequential decline of 26%), and no
        guidance was given for fiscal 2002.
     -- Management is also investigating a restatement of the
        $56.2 billion of goodwill on its balance sheet as of
        March 30, which is greater than the company's market capitalization
        of $31.5 billion.
     -- We think most of the inventory correction appears to
        have worked its way through the industry, but we see reduced
        spending from ILECs in response to a slowing economy and
        reduced competition from the CLECs and following the market
        exit of weaker positioned service providers.
     -- We are reducing our calendar 2001 revenue estimate to
        $2.9 billion from $3.9 billion and our calendar 2001 EPS
        estimate to $0.30 from $0.55.
     -- Although we think current valuations do not represent
        a good entry point short-term investors, we think JDS
        Uniphase remains one of the best positioned optical component
        manufacturers for a recovery in carrier capital spending.
 
     Communications Equipment Research Coverage
     Investors can visit Epoch's Web site to read research coverage on the
 following public companies:  Avanex Corporation, Avici Systems, Bookham
 Technology plc, Ceragon Networks, CIENA Corporation, Cisco Systems, Corning
 Incorporated, Corvis Corporation, Endwave Corporation, Finisar Corporation,
 Floware Wireless Systems, Foundry Networks, JDS Uniphase Corporation, Lucent
 Technologies, Netro Corporation, New Focus, Inc., Netro Corporation, Sycamore
 Networks, and UTStarcom, Inc.
     In addition, investors can be added to the Communications   Equipment
 email alert system, which alerts investors to new   research in the
 Communications Equipment sector.  To be added to this alert system visit
 http://pluto.sparklist.com/scripts/lyris.pl?join=epochcommeq .
     Full research coverage on other companies under coverage by Epoch is
 available for free to investors through the Epoch Web site (www.epoch.com).
     Epoch Partners is a technology-enabled investment bank focused on
 high-growth companies and electronically connected institutional and
 individual investors.
     The analyst(s) involved in the preparation of this report has an
 investment position in the subject security. (JDSU).
     The information contained herein is based on sources believed to be
 reliable but is neither all-inclusive nor guaranteed by Epoch Partners.
 Opinions, if any, reflect our judgment at this time and are subject to change.
 Epoch Partners does not undertake to advise of changes in its opinion or the
 information.  Epoch Partners may perform or seek to perform investment banking
 services for the issuers of securities which are the subject of our Research.
 Most of the companies Epoch Partners follows are emerging growth companies
 whose securities typically involve a higher degree of risk and more volatility
 than the securities of more established companies.  The securities discussed
 in the Epoch Partners Research may be unsuitable for investors depending on
 their specific investment objectives and financial situation and needs.  No
 report included in the Epoch Partners Research is a recommendation that any
 particular investor should purchase or sell any particular security in any
 amount or at all and is not a solicitation of any offer to purchase or sell
 from or to any particular investor.  For additional information that may be
 available on the securities mentioned, please contact Epoch Partners.  This
 document has been published in the United States for Residents of the United
 States.
 
     Epoch Partners is a member of the National Association of Securities
 Dealers, CRD number 103899.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X02365485
 
 

SOURCE Epoch Partners, Inc.
    SAN FRANCISCO, April 25 /PRNewswire/ -- Epoch Partners today announced it
 has issued a Research Note on JDS Uniphase Corporation (Nasdaq:   JDSU). The
 Note is available for free to investors through the Epoch Web site
 (www.epoch.com).
     The Research Note, issued by Mark Langley, Senior Research Analyst for
 Communications Equipment Subsystems, discusses the current investment thesis
 of JDS Uniphase Corporation. Highlights from the report include the following:
 
     -- JDS Uniphase announced its fiscal 3Q earnings two days
        ahead of schedule, with revenues of $920 million and EPS of
        $0.14, in line with our and Street expectations.
     -- The early announcement was prompted by a global
        realignment program that includes job cuts (5,000 employees
        or 20% of the workforce), 25 building closures, and total
        charges of $375-$425 million.
     -- The company continues to see a downturn in carrier
        capital spending and estimates that customer inventory
        reductions could be completed by the end of the June or
        September quarter.  Revenue guidance for fiscal 4Q was
        lowered to $700 million (a sequential decline of 26%), and no
        guidance was given for fiscal 2002.
     -- Management is also investigating a restatement of the
        $56.2 billion of goodwill on its balance sheet as of
        March 30, which is greater than the company's market capitalization
        of $31.5 billion.
     -- We think most of the inventory correction appears to
        have worked its way through the industry, but we see reduced
        spending from ILECs in response to a slowing economy and
        reduced competition from the CLECs and following the market
        exit of weaker positioned service providers.
     -- We are reducing our calendar 2001 revenue estimate to
        $2.9 billion from $3.9 billion and our calendar 2001 EPS
        estimate to $0.30 from $0.55.
     -- Although we think current valuations do not represent
        a good entry point short-term investors, we think JDS
        Uniphase remains one of the best positioned optical component
        manufacturers for a recovery in carrier capital spending.
 
     Communications Equipment Research Coverage
     Investors can visit Epoch's Web site to read research coverage on the
 following public companies:  Avanex Corporation, Avici Systems, Bookham
 Technology plc, Ceragon Networks, CIENA Corporation, Cisco Systems, Corning
 Incorporated, Corvis Corporation, Endwave Corporation, Finisar Corporation,
 Floware Wireless Systems, Foundry Networks, JDS Uniphase Corporation, Lucent
 Technologies, Netro Corporation, New Focus, Inc., Netro Corporation, Sycamore
 Networks, and UTStarcom, Inc.
     In addition, investors can be added to the Communications   Equipment
 email alert system, which alerts investors to new   research in the
 Communications Equipment sector.  To be added to this alert system visit
 http://pluto.sparklist.com/scripts/lyris.pl?join=epochcommeq .
     Full research coverage on other companies under coverage by Epoch is
 available for free to investors through the Epoch Web site (www.epoch.com).
     Epoch Partners is a technology-enabled investment bank focused on
 high-growth companies and electronically connected institutional and
 individual investors.
     The analyst(s) involved in the preparation of this report has an
 investment position in the subject security. (JDSU).
     The information contained herein is based on sources believed to be
 reliable but is neither all-inclusive nor guaranteed by Epoch Partners.
 Opinions, if any, reflect our judgment at this time and are subject to change.
 Epoch Partners does not undertake to advise of changes in its opinion or the
 information.  Epoch Partners may perform or seek to perform investment banking
 services for the issuers of securities which are the subject of our Research.
 Most of the companies Epoch Partners follows are emerging growth companies
 whose securities typically involve a higher degree of risk and more volatility
 than the securities of more established companies.  The securities discussed
 in the Epoch Partners Research may be unsuitable for investors depending on
 their specific investment objectives and financial situation and needs.  No
 report included in the Epoch Partners Research is a recommendation that any
 particular investor should purchase or sell any particular security in any
 amount or at all and is not a solicitation of any offer to purchase or sell
 from or to any particular investor.  For additional information that may be
 available on the securities mentioned, please contact Epoch Partners.  This
 document has been published in the United States for Residents of the United
 States.
 
     Epoch Partners is a member of the National Association of Securities
 Dealers, CRD number 103899.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X02365485
 
 SOURCE  Epoch Partners, Inc.