JDS Slashing 7,000 Jobs

JDS Uniphase (JDSU Quote) Thursday posted a steep fourth-quarter loss and laid out plans to cut its workforce by nearly two-thirds.

JDS said first-quarter results wouldn't meet its already sharply reduced guidance, which had the company breaking even on revenue of $450 million. JDS said it "does not yet see any positive signs of a reversal in the downward trend in the industry" and declined to offer any further financial projections for other periods. JDS also recognized $45 billion in acquisition-overpayment charges.

Trading in JDS shares was halted ahead of the postclose earnings report, with the stock up 68 cents at $9.47.

JDS outlined a restructuring that will result in 16,000 layoffs. The company said it has already fired 9,000 workers this year and will cut 7,000 more jobs during the current quarter. JDS, which earlier this year employed about 25,000 workers, said the firings will allow it to break even at $350 million in quarterly sales.

The company also took a $6.1 billion fourth-quarter charge and a $38.7 billion third-quarter charge to write down the value of acquisition-related goodwill. The company said the industrywide erosion of asset values may force it to take further goodwill reductions against fourth-quarter results.

For the fourth quarter ended June 30, the maker of optical telecommunications components reported a pro forma loss of $477 million, or 36 cents a share, on revenue of $601 million. Wall Street had expected a profit of 3 cents a share. For the year-ago fourth quarter, JDS earned $137 million, or 14 cents a share, on revenue of $641 million.

JDS said it had $1.6 billion in cash and liquid securities at June 30, and reported $65 million in cash flow from operations for the latest quarter.