JDS Uniphase Corp. announced first quarter results on Thursday that met its lowered guidance, including US$193 million in revenue.
JDS started its new fiscal year with a $29-million drop (all figures in U.S. dollars) in net sales from the previous quarter. As for its bottom line, JDS reported a loss of $521 million ($0.37 per share).
The company said that Q2 sales could fall as low as $150 million.
The quarterly results did not include new information about job cuts. On Monday, the Ottawa Business Journal reported the company's workforce would dwindle from its high of more than 10,000 workers to just a few hundred by the spring of 2003. That project came from sources familiar with JDS's restructuring plan.
JDS's revenues have declined for seven consecutive quarters as the telecom sector continues to wallow in a slump expected to persist until 2004. In the past weeks, a host of telecom equipment makers have issued fresh warnings as business continues to sink. Many of these firms are customers of JDS.
In its conference call on Thursday, a JDS executive said, "We have nearly completed a reorganization of the company … that will centralize functions.” He explained that functions such as human resources, finance and information technology have been centralized. He did not mention specifically if Ottawa was impacted.
JDS did say that manufacturing would continue to be shifted from Ottawa to China. The city will be the company's centre of excellence for certain optical layer components. It will also see research and development of switching modules, amplified and other passive components.
The company did not comment about its number of employees in Ottawa. It did say that its global workforce has fallen to 8,000 employees. It also expects layoffs to continue.
"While Ottawa will continue to have responsibility for some product lines,” said the spokesperson, "we are continuing to transfer other products that are mature or ready for high-volume manufacturing to Shenzhen. Ottawa will continue to be the centre for our instrumentation and transmission product lines.”
The savings will eventually save JDS $1.1 billion per year.
JDS started its new fiscal year with a $29-million drop (all figures in U.S. dollars) in net sales from the previous quarter. As for its bottom line, JDS reported a loss of $521 million ($0.37 per share).
The company said that Q2 sales could fall as low as $150 million.
The quarterly results did not include new information about job cuts. On Monday, the Ottawa Business Journal reported the company's workforce would dwindle from its high of more than 10,000 workers to just a few hundred by the spring of 2003. That project came from sources familiar with JDS's restructuring plan.
JDS's revenues have declined for seven consecutive quarters as the telecom sector continues to wallow in a slump expected to persist until 2004. In the past weeks, a host of telecom equipment makers have issued fresh warnings as business continues to sink. Many of these firms are customers of JDS.
In its conference call on Thursday, a JDS executive said, "We have nearly completed a reorganization of the company … that will centralize functions.” He explained that functions such as human resources, finance and information technology have been centralized. He did not mention specifically if Ottawa was impacted.
JDS did say that manufacturing would continue to be shifted from Ottawa to China. The city will be the company's centre of excellence for certain optical layer components. It will also see research and development of switching modules, amplified and other passive components.
The company did not comment about its number of employees in Ottawa. It did say that its global workforce has fallen to 8,000 employees. It also expects layoffs to continue.
"While Ottawa will continue to have responsibility for some product lines,” said the spokesperson, "we are continuing to transfer other products that are mature or ready for high-volume manufacturing to Shenzhen. Ottawa will continue to be the centre for our instrumentation and transmission product lines.”
The savings will eventually save JDS $1.1 billion per year.
