Oclaro, Inc. (Avanex-Bookham) Message Board

From: FUBHO	5/14/2007 4:22:54 PM
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JDSU May Be Mulling Optical Exit MAY 14, 2007 Following a restructuring process that has created something akin to a holding company, JDS Uniphase Corp. (Nasdaq: JDSU - message board; Toronto: JDU) could be preparing to sell off its Optical Communications division, industry sources say. A sale doesn't appear imminent, but market chatter is that JDSU considers a selloff to be one option, given the continued disappointing returns in optical. "What I've heard on my side was that JDSU is seriously considering divesting its optical communications business," says one source in the optical industry. "If it compares the margins to the test-and-measurement side, optical communications looks invisible." It's not as if JDSU has lost all interest in optical: After all, the company is in the process of acquiring Picolight Inc. (See JDSU Picks Up Picolight for $115M.) But sources say the removal of optical would let JDSU concentrate more on its Communications Test and Measurement unit, which was launched with the 2005 acquisition of Acterna. JDSU is continuing to beef up that side of the business, too. Just last week, JDSU grabbed Innocor Ltd. for an undisclosed sum. (See JDSU Buys Into Testy Market and JDSU to Acquire Innocor.) lightreading.com