JDS Uniphase

(JDSU)

was down 7.5% in early trading after hitting a 52-week low of $29.25.

In a speech, the optical-equipment maker's CEO said it was examining its options in the wake of a major warning last week from rival

Nortel

(NT)

. Nortel issued its warning and its stock plummeted just two days after it closed a stock deal for JDSU's Zurich plant. JDSU CEO Jozef Straus said the company is not considering a lawsuit.

Late Wednesday, JDSU said it has bought

Optical Process Automation

. Terms were not disclosed.

Nortel was down 2.6%.

UBS Warburg

cut its 2001 and 2002 earnings estimates and sliced its price target to $27 from $30.