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News Breaks
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November 8, 2009
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| 18:14 EDT |  | JDSU |
| theflyonthewall.com: | JDS Uniphase once the ultimate bubble stock -- is back, Barron's reports | | The stock JDS Uniphase (JDSU), now trading for a little more than $6, adjusted for splits is seeing demand for its wares, which include both optical components and related test and measurement hardware, pick up. CEO Tom Waechter, in an interview Thursday, said demand from North American carriers is improving, with European telcos not far behind. Waechter said that JDS Uniphase is seeing "very strong demand," and that "network operators are starting to spend again." In particular, he sees growth in a segment known as "wireless backhaul," where capacity is being pinched by the rapid growth in wireless broadband. The company has slashed costs, outsourcing most of its manufacturing. Head count, which early in the year was above 7,000, is now under 4,000. Gross margins in the latest quarter hit 44% for JDS, up from 42.2% in the previous one. As revenue recovers, Waechter says, a bump to the 46%-plus range is ahead. While Barron's Technology Trader columnist Eric Savitz won't predict a return to $1,000 for the stock, a gradual recovery back to double digits is a reasonable bet. Reference Link :theflyonthewall.com |
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