View
415
Download
3
Category
Tags:
Preview:
Citation preview
RBC Capital Tech Conference
Tom Waechter Chief E ec ti e OfficerTom Waechter, Chief Executive OfficerJune 10, 2010
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION1
Safe Harbor Statement
Certain statements in this presentation constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1934. “Forward-looking” statements are all statements made by us, other than those dealing specifically with historical matters and any statements we make about the conduct of our business or finances up to this moment. All other statements made by us are forward-looking statements which include any information provided on future business operations and guidance regarding our future financial performance. Actual results may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to materially differ from those in the forward-looking statements are discussed in the Company’s Securities and Exchange Commission Filings, particularly the risk factors section of our most recent form 10-K.This presentation includes Non-GAAP financial measures where indicated. These non-GAAP financial measures complement the Company’s consolidated financial statements presented in a c a easu es co p e e e Co pa y s co so da ed a c a s a e e s p ese edaccordance with GAAP. However, these non-GAAP financial measures are not intended to supersede or replace the Company’s GAAP results. A detailed reconciliation of historical GAAP results to the historical non-GAAP results is provided in the “Non-GAAP Condensed Consolidated Statement of Operations” schedule to our news release announcing our most p grecent quarterly financial results. A discussion of the GAAP measures excluded from the forward-looking non-GAAP measures is provided in the “Business Outlook” paragraph of the news release. The news release is located in the Investor Relations section of our web site at www.jdsu.com.
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION2
j.
JDSU Strategy
Execute as a diversified technology company focused on optical and broadbandcompany focused on optical and broadband innovation
Enable customers’ innovation in broadband and optical marketsDiversify our customer base and product portfolioShape product portfolio: profitability followed by p p p p y yrevenue growthFocus on best-in-class operating metrics
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION3
Enabling Broadband & Optical InnovationC i ti & C i ti Ad d O ti l
Business Segments
Communications & Commercial Optical Products
Communications Test & Measurement
Advanced Optical Technologies
Total Market Size (Annual)* $4.3B $2.8B $1.5B(Annual)
Annual Growth Rate* 5-15% 6-12% 5-10%
JDSU Market P iti * #1-4 #1-2 #1-2Position* # # #
Markets
Telecom, Datacom, Submarine, Long Haul, Metro, Access, Biotech,
Microelectronics,
Telecom/Cable Access, Metro, Core & Home
Networking, SAN
Currency, Defense Authentication, Instrumentation
Semiconductors and Materials Processing
Sample
Alcatel-Lucent, ASML, Becton Dickinson, Ciena,
Cisco, Ericsson, ESI,,
Alcatel-Lucent, AT&T, British Telecom, China Telecom, Comcast, Telmex, Verizon
Astra-Zeneca, Peoples Bank of China, HP, ITT, Lockheed
Martin, Pfizer, SICPA
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION4
pCustomers
, , ,,Tellabs, Huawei, Nortel, NSN,
Fujitsu
, , , ,
* Sources: Central Banks, Frost & Sullivan, Infonetics Research, Ovum-RHK, PIRA Research, Prime Data, US Chamber of Commerce, and internal analysis.
Q3 FY10 Summary
R d d 3% t t t $332 9 illi 19%Revenue decreased 3% quarter-over-quarter to $332.9 million, up 19% year-over-year
Gross margins of 44.1%, third consecutive quarter at or above 44%
Operating margins of 6 6% highest non-December quarter operating marginOperating margins of 6.6%, highest non-December quarter operating margin
Net income of $23.2m compared to $26.6m a quarter ago
EPS of $0.10, above Wall Street expectations
$420 50%
$ , p
Free cash flow positive $7.9 million, 14th consecutive quarter of positive cash flow from operations
$300$320$340$360$380$400$420
25%30%35%40%45%50%
$200$220$240$260$280$300
6 6 7 7 7 7 8 8 8 8 9 9 9 9 0 0 0
0%5%10%15%20%
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION5
Q30
Q40
Q10
Q20
Q30
Q40
Q10
Q20
Q30
Q40
Q10
Q20
Q30
Q40
Q11
Q21
Q31
Revenue ($M) Gross Margin (%)
Enabling Broadband & Optical Innovation
Communications Test & Measurement
Product Groups Lab & Production, Field Service, Service Assurance
T&M Highlights Fiscal Q3 revenue down 17.6% Q/Q, up 14.1% Y/YBook to bill >1Typical seasonality and material supply constraintsGross margin of 54 9% due to product mix and ASP trendsGross margin of 54.9% due to product mix and ASP trendsCompleted acquisition of NSD business from Agilent
InnovationInnovation
Market Position Market leader in served addressable markets #1 market position in optical transport and storage network test
for the lab and production marketfor the lab and production market#1 field test positions in the Ethernet, fiber field, xDSL and cable
networking markets.• Gross Margins: 57%-61%
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION6
Operating Model • Operating Margins: 20%-23%at ≥ $175 million of revenue
JDSU Acquires NSD – 3 Lines of Business
Service Assurance– Largest business line by revenue– Complements JDSU solutions by adding carrier-class OSS with
probe based signaling test including LTE testing capability
Service Assurance– Largest business line by revenue– Complements JDSU solutions by adding carrier-class OSS with
probe based signaling test including LTE testing capabilityprobe-based signaling test, including LTE testing capability– Market-leading carrier solutions for network deployment,
management and operation
probe-based signaling test, including LTE testing capability– Market-leading carrier solutions for network deployment,
management and operation
Network Protocol Test– Largest installed customer base for network protocol analyzers– Used for both lab and field testing by NEMs and wireless service
providers
Network Protocol Test– Largest installed customer base for network protocol analyzers– Used for both lab and field testing by NEMs and wireless service
providersproviders– Supports protocols such as WiMAX, Bluetooth, 3G and emerging
LTE technologies
providers– Supports protocols such as WiMAX, Bluetooth, 3G and emerging
LTE technologies
Wi l D i T tWi l D i T tWireless Drive Test– Drive test network optimization platform– Vehicle-mounted mobile test solution– Measures performance and troubleshoots network coverage in
Wireless Drive Test– Drive test network optimization platform– Vehicle-mounted mobile test solution– Measures performance and troubleshoots network coverage in
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION7
p gsupport of all wireless technologies including LTE and WiMAX
p gsupport of all wireless technologies including LTE and WiMAX
JDSU vs. The Competition
Access Points Transport Signaling
• JDSU is the only vendor with end to end solutions for LTE • Won award for Best LTE Test Product at 2010 LTE World Summit
Access Points Transport Signaling
Drive Test Active Service Testing
Portables System(s) Protocol Analyzers
System(s)
JDSU NSD In process JDSUCommTest
JDSUCommTest
NSD NSD
OtherLeading LTE PlayersPlayers
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION8
No solution Some advantage Leadership position
Enabling Broadband & Optical Innovation
Communications & Commercial Optical Products
Innovation
Optical Communications
highlights
Innovation focus on functional integrationQ3 revenue grew by 15% Q/Q; book to bill >1Gross margins improved to 26%; hit target 25-30% 1 qtr earlyROADM 22% Q/Q t 25% f OCROADM revenue grew 22% Q/Q to over 25% of OC revenue9 of 11 product lines grew; record bookings in at least 2 yrs
Lasers Nearly 12% sequential revenue growthhighlights Gross margins improved to 41.3%, also hitting target
Pipeline for new products expected to increase SAM by more than 3X
Operating Model 10% 15% at ≥ $150 million of revenue
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION9
Operating Model 10%-15% at ≥ $150 million of revenue
Enabling Broadband & Optical Innovation
Advanced Optical Technologies
Solutions Security solutions: brand protection, anti counterfeiting y p gfor currency, transaction card authentication
Custom optics for aerospace and defenseCustom color solutions
Innovation
Hi hli ht R d fit ti fit dHighlights Record revenue, gross profit, operating profit and bookings in Q3Strength in currency including new US $100 billBegan shipping filter for gesture recognitiong pp g g g
Trends Customers seeking more complex integrated design features to combat counterfeiting
Increased custom optic applications
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION10
Operating Model Operating Margins: 34%-37% at current revenue levels
JDSU Quarterly Operating Model
Revenue (mil) Operating Margin
CommTest $175 20‐23%
NSD $40 20‐23%
CCOP $150 10‐15%CCOP (Optical Components/Lasers)
$150 10 15%
AOT $50 34‐37%
TOTAL $415‐425 11%
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION11
Fiscal Year 2010 Strategic Priorities
Focus on profitable, market-based innovation
Increase our global market presence
Focus on lean
Maximize the utilization of our assets
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION12
JDSU Investment Thesis
An Investment in Broadband and Optical Innovation
An Evolving Business ModelClearly Defined Near-Term and Longer-Term Targets
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION13
Q&A
© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION14
Recommended