DAVID PADDON
Canadian Press
Thursday, August 21, 2003
TORONTO (CP) - Saying it's time to "pass the baton," high-tech entrepreneur Jozef Straus announced Thursday he is retiring as CEO and co-chairman of JDS Uniphase Corp., a company that soared during the telecom industry boom but produced one of the biggest corporate losses in history after the technology bubble burst.
The fibre optics component company, which Straus helped co-found in 1981 and which became a major Ottawa employer, also announced it's moving its head offce to California's Silicon Valley. Meanwhile, No. 2 executive Syrus Madavi, president and chief operating officer, will leave the company "to pursue future opportunities" after a transition period.
After the announcements, JDS Uniphase shares rose 10 per cent, or 45 cents to $4.91, on the Toronto stock market - a far cry from levels above $180 three years ago.
On the Nasdaq stock market, where most trading of JDS shares is done, the stock rose more than nine per cent to $3.49 US, up 30 cents.
"It's the right time to pass the baton," Straus said in a conference call, saying his decision to step down after 20 years in control was difficult.
Despite the challenges of recent years, he said, "there was never a dull moment on this roller-coaster ride."
Straus told analysts that Madavi had been "naturally considered as the leading candidate" for the CEO position when Straus retired but after "careful deliberation" offered the job to Kevin Kennedy, a former Cisco Systems executive.
Kennedy, 47, joined the JDS board in October 2001, will be the new CEO and handle the chief operating officer's responsibilities as well. Kennedy said he expects Madavi, who wasn't on the conference call, to remain for several months during a transitional phase lasting "a quarter to two quarters."
Saying he doesn't "feel encumbered by history," Kennedy pledged to carry through JDS's global realignment strategy - which has already cut more than 24,000 jobs from the company's global payroll and closed dozens of locations.
"Achieving optimal operational results will be a continuing priority for the company," Kennedy said, adding he believes that "in this environment, strategic positioning in key near-term growth markets is the path to pursue."
At its peak in early 2001, JDS employed 10,000 people in Ottawa, but that number is now below 600.
Straus, 57, was a co-founder of the predecessor company, JDS Fitel, which was founded in 1981 in Ottawa.
JDS Uniphase (TSX:JDU) was created in 1999 when JDS Fitel merged with San Jose-based Uniphase Corp., in a $6-billion US merger.
The combined company grew dramatically through a number of acquisitions - including the $18-billion US purchase of SDL Inc. of San Jose in 2001 - during the telecom building boom, when companies like Nortel Networks, Cisco Systems and others were hungry for components to build their fibre optics networks.
But when spending on network equipment suddenly dried up in early 2001, JDS Uniphase saw sales plunge dramatically. It has lost money for more than four years - a total of $67.26 billion US. In one quarter, the company reported a loss of around $50 billion US after massive non-cash writeoffs - at the time the biggest three-month loss in corporate history.
Straus, who made millions along with other JDS executives after cashing in stock during the high-tech boom, said he will stay on the board and assume the role of Founder Emeritus and adviser to the CEO. No other major corporate changes are planned, he told the conference call.
Straus asked the company's high-tech customers to "bear with us" during the transition.
Along with the executive changes, the company will consolidate its corporate headquarters in San Jose, Calif.
In recent years, the HQ has been split between Ottawa and San Jose - although Straus has recently been the only top-level executive based in Ottawa and most head-office functions have already moved to San Jose.
Canadian Press
Thursday, August 21, 2003
TORONTO (CP) - Saying it's time to "pass the baton," high-tech entrepreneur Jozef Straus announced Thursday he is retiring as CEO and co-chairman of JDS Uniphase Corp., a company that soared during the telecom industry boom but produced one of the biggest corporate losses in history after the technology bubble burst.
The fibre optics component company, which Straus helped co-found in 1981 and which became a major Ottawa employer, also announced it's moving its head offce to California's Silicon Valley. Meanwhile, No. 2 executive Syrus Madavi, president and chief operating officer, will leave the company "to pursue future opportunities" after a transition period.
After the announcements, JDS Uniphase shares rose 10 per cent, or 45 cents to $4.91, on the Toronto stock market - a far cry from levels above $180 three years ago.
On the Nasdaq stock market, where most trading of JDS shares is done, the stock rose more than nine per cent to $3.49 US, up 30 cents.
"It's the right time to pass the baton," Straus said in a conference call, saying his decision to step down after 20 years in control was difficult.
Despite the challenges of recent years, he said, "there was never a dull moment on this roller-coaster ride."
Straus told analysts that Madavi had been "naturally considered as the leading candidate" for the CEO position when Straus retired but after "careful deliberation" offered the job to Kevin Kennedy, a former Cisco Systems executive.
Kennedy, 47, joined the JDS board in October 2001, will be the new CEO and handle the chief operating officer's responsibilities as well. Kennedy said he expects Madavi, who wasn't on the conference call, to remain for several months during a transitional phase lasting "a quarter to two quarters."
Saying he doesn't "feel encumbered by history," Kennedy pledged to carry through JDS's global realignment strategy - which has already cut more than 24,000 jobs from the company's global payroll and closed dozens of locations.
"Achieving optimal operational results will be a continuing priority for the company," Kennedy said, adding he believes that "in this environment, strategic positioning in key near-term growth markets is the path to pursue."
At its peak in early 2001, JDS employed 10,000 people in Ottawa, but that number is now below 600.
Straus, 57, was a co-founder of the predecessor company, JDS Fitel, which was founded in 1981 in Ottawa.
JDS Uniphase (TSX:JDU) was created in 1999 when JDS Fitel merged with San Jose-based Uniphase Corp., in a $6-billion US merger.
The combined company grew dramatically through a number of acquisitions - including the $18-billion US purchase of SDL Inc. of San Jose in 2001 - during the telecom building boom, when companies like Nortel Networks, Cisco Systems and others were hungry for components to build their fibre optics networks.
But when spending on network equipment suddenly dried up in early 2001, JDS Uniphase saw sales plunge dramatically. It has lost money for more than four years - a total of $67.26 billion US. In one quarter, the company reported a loss of around $50 billion US after massive non-cash writeoffs - at the time the biggest three-month loss in corporate history.
Straus, who made millions along with other JDS executives after cashing in stock during the high-tech boom, said he will stay on the board and assume the role of Founder Emeritus and adviser to the CEO. No other major corporate changes are planned, he told the conference call.
Straus asked the company's high-tech customers to "bear with us" during the transition.
Along with the executive changes, the company will consolidate its corporate headquarters in San Jose, Calif.
In recent years, the HQ has been split between Ottawa and San Jose - although Straus has recently been the only top-level executive based in Ottawa and most head-office functions have already moved to San Jose.
