April 21, 2005, San Jose, CA--JDS Uniphase is implementing three new initiatives as part of its ongoing business strategy to achieve profitability and increase corporate agility by reducing cost structure and eliminating non-core products. The company plans to:
* Consolidate its Ewing, NJ, and Melbourne, FL, manufacturing to its Shenzhen, China, facility and to the facilities of two contract manufacturing partners,
* Transfer its Ewing and Mountain Lakes, NJ, manufacturing facilities to Fabrinet (San Francisco, CA), a key manufacturing partner, and
* Reduce manufacturing in Santa Rosa, CA, associated with the phasing out of certain display products including high-volume consumer light engines and coated micro display windows.
"These initiatives are part of a multi-quarter business transformation strategy for JDS Uniphase to achieve profitability by reducing cost structure and improving corporate agility," said president and CEO Kevin Kennedy. "We firmly believe that our ability to restructure major operations and rationalize our current portfolio, while investing in next-generation products, positions JDS Uniphase for success and differentiates us from the competition."
The facility transfers to Fabrinet are expected to be completed by the end of the current quarter, ending June 30, 2005, while the remaining actions are expected to be completed by the end of the second quarter of fiscal 2006, ending December 31, 2005.
The actions will result in the significant consolidation of the Company's North American manufacturing operations. Specifically, the Company expects that by the end of the calendar year, manufacturing positions will be reduced by more than 15 percent (approximately 700 people plus 150 people in support positions). Research and development will continue at all sites, except Mountain Lakes.
The Company separately confirmed that it expects to achieve the previously provided financial guidance for the Third Quarter of fiscal 2005, which forecasted that revenue would be in the range of $155 to $165 million, and non-GAAP loss per share would be approximately two cents. Further details will be discussed during the JDS Uniphase Third Quarter Results conference call on Wednesday, April 27, 2005, at 2:00 p.m. Pacific Time.
