Another Blowout Quarter for SDL - TheStreet

Another Blowout Quarter for SDL

JDS' intended reports third-quarter earnings of 45 cents a share, 7 cents above estimates.
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Updated from 4:48 p.m. EDT

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SDL

(SDLI)

blew past Wall Street's earnings estimates Thursday, quieting for now the fears of a slowdown at the hot optical components maker.

SDL reported third-quarter earnings of $40.4 million, or 45 cents a share, exceeding Wall Street's expectations by 7 cents. Revenue jumped to $146.5 million from $47.5 million a year earlier, and a 33% increase over the previous quarter.

The San Jose-based maker of fiber optic components including lasers, amplifiers and communications chips quadrupled its net income of a year ago on strong sales to network equipment manufacturers. The 45-cent profit also marks a 52% increase over the profits of the previous quarter. Shares of SDL, which agreed in July to be acquired by components giant

JDS Uniphase

(JDSU)

, closed at $289.13 Thursday but jumped 4% after hours to $301.

Company executives were asked what impact

Lucent's

(LU)

troubles had on

Photonic Integration Research

, a company SDL acquired in June. (

TheStreet.com

had examined SDL's earnings prospects, focusing on this question, in a

story earlier Thursday.)

SDL Chairman and CEO Donald Scifres said Lucent's woes caused revenue for the Photonic Research unit to be flat compared to the second quarter. But Scifres was optimistic nonetheless. "We strengthened the PIRI situation," says Scifres. "We have four new customers and new product lines."

Scifres also dispelled any concerns that the cash crunch in the telecom sector was reaching SDL's customers. "I'd say we are seeing extremely good results," says Scifres. "The products are in high demand and the customers are really continuing to jump after our product line."