UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________to _________
Commission file number 0-22874
JDS Uniphase Corporation
(Exact name of Registrant as Specified in its Charter)
| Delaware | 94-2579683 |
| (State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification Number) |
210 Baypointe Parkway
San Jose, California 95134
(Address of Principal Executive Offices including Zip Code)
(408) 434-1800
(Registrant's Telephone Number, Including Area Code)
(Former name, former address and former fiscal year if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ]
Number of shares of Common Stock outstanding as of the latest practicable date, October 31, 2000: 961,537,397, including 173,904,237 Exchangeable Shares of JDS Uniphase Canada Ltd., each of which are exchangeable at any time into Common Stock on a one-for-one basis, entitle their holders to dividend and other rights economically equivalent to those of the Common Stock, and through a voting trust, vote at meetings of stockholders of the Registrant.
JDS UNIPHASE CORPORATION
FORM 10-Q
INDEX
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements (Unaudited):
Condensed Consolidated Statements of Operations Three months ended September 30, 2000 and 1999
Condensed Consolidated Balance Sheets September 30, 2000 and June 30, 2000
Condensed Consolidated Statements of Cash Flows Three months ended September 30, 2000 and 1999
Notes to Condensed Consolidated Financial Statements
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
ITEM 3. Quantitative and Qualitative Disclosure about Market Risks
PART II. OTHER INFORMATION
ITEM 1: Legal Proceedings
ITEM 2: Changes in Securities
ITEM 3: Defaults Upon Senior Securities
ITEM 4: Submission of Matters to a Vote of Security Holders
ITEM 5: Other Information
ITEM 6: Exhibits and Reports on Form 8-K
Signatures
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements
JDS UNIPHASE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
Three Months Ended
September 30,
--------- ----------
2000 1999
--------- ---------
Net sales................................. $ 786.5 $ 230.1
Cost of sales............................. 436.7 125.2
--------- ---------
Gross profit............................ 349.8 104.9
--------- ---------
Operating expenses:
Research and development................ 62.4 17.2
Selling, general and administrative..... 116.2 27.9
Amortization of purchased
intangibles........................... 1,107.4 172.9
Acquired in-process research and
development........................... 8.9 --
--------- ---------
Total operating expenses.................. 1,294.9 218.0
--------- ---------
Loss from operations...................... (945.1) (113.1)
Activity related to equity interests
in certain investments.................. (41.2) --
Interest and other income, net............ 13.6 5.5
--------- ---------
Loss before income taxes................ (972.7) (107.6)
Income tax expense........................ 43.9 6.3
--------- ---------
Net loss.................................. $(1,016.6) $ (113.9)
========= =========
Basic and dilutive loss per share......... $ (1.07) $ (0.17)
========= =========
Shares used in per share calculation:
Basic and dilutive........................ 946.6 673.9
========= =========
See accompanying notes to condensed consolidated financial statements.
JDS UNIPHASE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
September 30, June 30,
2000 2000
------------ ------------
(unaudited)
ASSETS
Cash and cash equivalents...................... $ 213.3 $ 319.0
Short-term investments......................... 931.6 795.3
Accounts receivable, less allowances for
returns and doubtful accounts of $10.0 at
September 30, 2000 and $8.2 at June 30, 2000. 493.8 381.6
Inventories.................................... 394.5 375.4
Deferred income taxes.......................... 66.4 62.4
Other current assets........................... 38.8 39.2
------------ ------------
Total current assets........................ 2,138.4 1,972.9
Property, plant, and equipment, net............... 770.5 670.7
Deferred income taxes............................. 702.7 642.7
Intangible assets, including goodwill, net........ 21,082.0 22,337.8
Long-term investments............................. 939.8 760.9
Other assets...................................... 34.6 4.1
------------ ------------
Total assets................................ $ 25,668.0 $ 26,389.1
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable............................... $ 161.2 $ 195.2
Accrued payroll and related expenses........... 110.5 98.8
Income taxes payable........................... 66.5 108.6
Accrued expenses and other current liabilities. 237.7 244.6
------------ ------------
Total current liabilities................... 575.9 647.2
Deferred income taxes............................. 955.4 902.1
Accrued pension and other non-current liabilites.. 20.3 20.2
Long-term debt.................................... 31.3 41.0
Stockholders' equity:
Preferred stock................................ -- --
Common stock and additional paid-in capital.... 26,238.3 25,898.3
Accumulated deficit............................ (2,119.2) (1,102.5)
Accumulated other comprehensive loss........... (34.0) (17.2)
------------ ------------
Total stockholders' equity.................. 24,085.1 24,778.6
------------ ------------
Total liabilities and stockholders' equity.. $ 25,668.0 $ 26,389.1
============ ============
See accompanying notes to condensed consolidated financial statements.
JDS UNIPHASE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended
September 30,
----------- ------------
2000 1999
----------- -----------
Operating activities
Net loss.......................................... $ (1,016.6) $ (113.9)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Acquired in-process research and development.... 8.9 --
Depreciation and amortization expense........... 1,139.3 180.2
Activity related to equity interests in equity
investments.................................. 41.2 --
Deferred income taxes........................... (11.2) (15.9)
Tax benefits from stock options................. 44.7 12.0
Change in operating assets and liabilities:
Accounts receivable.......................... (111.7) (18.6)
Inventories.................................. (12.3) (9.9)
Other current assets......................... 9.2 3.6
Accounts payable, accrued liabilities and
other ..................................... (69.5) 1.9
----------- -----------
Net cash provided by operating activities........... 22.0 39.4
----------- -----------
Investing activities
Purchase of available for sale investments........ (422.0) (819.8)
Proceeds from maturities and sales of available
for sale investments....................... 277.8 514.9
Merger related expenses, net of cash acquired..... (65.2) (21.6)
Purchase of property, plant and equipment......... (127.9) (34.9)
Increase in other assets.......................... (18.0) (0.1)
----------- -----------
Net cash used in investing activities............... (355.3) (361.5)
----------- -----------
Financing activities
Proceeds from issuance of common stock and private
placement of exchangeable shares............ -- 713.9
Proceeds from issuance of common stock under
stock option and stock purchase plans....... 246.6 28.4
Principal repayments on notes receivable
from stockholders........................... 3.1 --
Repayment of debt acquired........................ (3.4) --
----------- -----------
Net cash provided by financing activities........... 246.3 742.3
----------- -----------
Effect of exchange rate changes on cash and
cash equivalents............................ (18.7) --
Increase (decrease) in cash and cash equivalents.... (105.7) 420.2
Cash and cash equivalents at beginning of period.... 319.0 75.4
----------- -----------
Cash and cash equivalents at end of period.......... $ 213.3 $ 495.6
=========== ===========
See accompanying notes to condensed consolidated financial statements.
JDS UNIPHASE CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Business Activities and Basis of Presentation
The financial information at September 30, 2000 and for the three month period ended September 30, 2000 and 1999 is unaudited, but includes all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for a fair presentation of the financial information set forth herein, in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, such information does not include all of the information and footnotes required by generally accepted accounting principles for annual financial statements. For further information, refer to the Consolidated Financial Statements and footnotes thereto incorporated by reference in the Company's Annual Report on form 10-K for the year ended June 30, 2000.
The results for the three month period ended September 30, 2000 may not be indicative of results for the year ending June 30, 2001 or any future period.
