Q1 2013 Earnings Call Transcript

Transcript Call Date 10/30/2012

Operator: Good day, ladies and gentlemen, and welcome to the First Quarter 2013 JDSU Earnings Conference Call. My name is Keith and I will be your operator for today. At this time, all participants are in a listen-only mode. Later on we will conduct a question-and-answer session. As a reminder, today's conference is being recorded for replay purposes.

With that, I'd now like to turn the conference over to your host for today, Ms. Cherryl Valenzuela, Investor Relations. Please go ahead.

Cherryl Valenzuela - IR: Great. Thank you, Keith, and welcome to JDSU's fiscal 2013 first quarter earnings call. Joining me today are Tom Waechter, CEO; and Rex Jackson, Acting CFO. David Heard, President of CommTest will join us for Q&A.

I'd like to remind you that this call will include forward-looking statements about the Company's future financial performance. These statements are subject to risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to look at our most recent filings with the SEC, particularly the risk factors section of our Annual Report on Form 10-K filed August 24, 2012. The forward-looking statements, including guidance provided during this call are valid only as of today. JDSU undertakes no obligation to update these statements.

Please also note that all results are non-GAAP unless otherwise stated. We include a detailed reconciliation of these non-GAAP results to our GAAP results, as well as a discussion of their usefulness and limitation in today's earnings press release. The release plus our supplementary slides and historical financial tables are available on our website. We have completed the sale of our hologram business. Accordingly, the operating results from this business are categorized as discontinued operation and are not included in the results we discuss today. Further we have re-casted our historical financial results to reflect the change and base the financial comparisons we make today on these re-casted historical financials. Finally we are recording this call today and we'll make the recording available promptly on our website.

I would now like to turn the call over to Tom.

Thomas Waechter - President and CEO: Thank you, Cherryl, and good afternoon, everyone. JDSU delivered first quarter revenue of $420.9 million, excluding approximately $5 million from our divested hologram business. Gross margin improved sequentially to 45.8%. Operating margin was 9.2% above management guidance.

Our balance sheet continues to gain strength. We generated a solid $43 million of cash from operations and finished with $730 million of total cash. We are pleased with our results especially given challenging conditions. Like our peers, we are seeing conservative global carrier CapEx spending due to ongoing macroeconomic weakness in Europe, slower growth in China and uncertainty in the United States. However, the relentless increase in broadband demand remains a powerful driver for our business, we continue to execute on our strategic priorities which are successfully guiding us through this uncertain period and preparing us to take advantage of a market upturn when it occurs. Our top priority is collaborative innovation. For the sixth consecutive quarter, products less than two years old generated more than half of our core network revenue with 57% in fiscal Q1.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.