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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV