This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

JDSU Steps Up the Pace

A retooled JDSU (JDSU) says it's geared up for a little growth.

Lest troubling memories linger of the former JDS Uniphase, the San Jose, Calif., company is on Wall Street this week to stress that this is the "new JDSU." And with several underperforming businesses and nearly four dozen executives out the door, the new-and-improved JDSU says it is succeeding by focusing on three main businesses: optical components, network testing and specialty coatings.

David Gudmundson, the company's head of corporate development, dropped by Monday. The visit came ahead of a shareholder vote Thursday on a proposed reverse stock split. JDSU wants investors to rubber-stamp a plan to boost the share price by reducing the number of shares outstanding.

Even without any reverse split, JDSU's revival efforts have been handsomely rewarded. The stock has gained nearly 50% in the two months since the company floated the reverse split plan and changed its name. JDSU shares fell 4 cents to $2.39 in midday trading Monday.

As the key supplier of lasers at the heart of the optical networks, JDSU enjoyed a blistering ride up during the heady Internet building boom. Today, the company appears to have survived the ensuing postboom industry collapse.

CEO Kevin Kennedy is credited with the reorganization of JDSU. Before joining the company in 2003, Kennedy spent time at wireless software shop Openwave (OPWV), and prior to that he ran Cisco's (CSCO) telco business.

Gudmundson, who worked with Kennedy at Cisco, shared an updated to-do list of businesses shoved out or in the process of moving toward the exit. He also showed a new organizational chart featuring only four holdovers from the old JDS Uniphase days. In fact, since Kennedy's arrival, 47 executives have been replaced, says Gudmundson.

And though not as acquisitive as its prebust days, JDSU has made several deals to bolster its offerings. Lacking growth, but with a surplus of cash, JDSU veered off in an entirely new direction in May with the $760 million purchase of Acterna, a network testing and measurement gearmaker.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs