JDS: The 1-Time Deal Wonder
Online staff -- EDN, August 19, 2005
After delaying earnings Thursday because of multiple one-time transactions, JDS Uniphase Corp. today has agreed to sell its passive Q-switched microlaser product line and Grenoble, France, facility to Teem Photonics S.A.
The sale, for which JDS did not disclose an amount, mimics several one-time moves the San Jose-based company made during its last quarter, forcing it to push back its earnings. During its closed fiscal Q4, JDS sold its Mountain Lakes, N.J., and Ewing, N.J., facilities to Fabrinet, a contract manufacturing partner; divested both the CATV and bulk optics businesses; phased out some products manufactured at the company’s Santa Rosa, Calif., facility; and acquired Photonic Power Systems and Lightwave Electronics.
Teem Photonics, which is also based in Grenoble, and JDS Uniphase said they reached today’s agreement in recognition that current customers would be best served by a local owner.
"This transaction is beneficial to customers, employees, and the two companies," Antoine Kevorkian, CEO of Teem Photonics, said in a statement. "We are located virtually next door to the Grenoble microlaser group of JDS Uniphase. Our track record in selling optical modules that require state-of-the art performance, high reliability and cost-effectiveness will enable us to serve current microlaser customers well and expand this activity. This transaction offers Teem Photonics the ability to leverage our assets, facilities and sales channel to market this product effectively."
The parties have also agreed that JDS will continue to supply Teem Photonics with components critical to the manufacture of these differentiated microlasers, ensuring no disruption of customer supply. Additionally, JDS Uniphase said it will exclusively license to Teem intellectual property, including a number of patents, associated with passive Q-switched microlasers.
"The divestiture enables us to focus management attention, sales resources and R&D on our leading solid state laser portfolio," said Phillip Meredith, VP of JDS Uniphase's commercial laser business unit, in the statement. "Transferring the Grenoble business to Teem Photonics serves our microlaser customers better and is consistent with our strategy of strengthening the performance of our laser business through effective partnerships."
The transaction is expected to close during the current calendar quarter.
