UPDATE 1-JDS Uniphase 1st-qtr forecast falls short of expectations

Tue Aug 12, 2014 7:13pm EDT
 
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(Adds analyst comment)

By Subrat Patnaik

Aug 12 (Reuters) - Network equipment maker JDS Uniphase Corp forecast first-quarter adjusted revenue and profit below market expectations, sending the company's shares down as much as 7.6 percent in extended trading.

The weak forecast is a result of order delays in the company's network service business, its largest, because of a spate of consolidations, UBS Equities analyst Amitabh Passi said.

Other network gear makers, too, are facing delays in orders as telecom and cable service providers hold back on spending while they work their way through a wave of mergers and acquisitions.

AT&T Inc $48.5 billion bid for DirecTV and Comcast Corp's $45.2 billion offer for Time Warner Cable Inc are awaiting regulatory approvals in the United States.

Last month, rival Juniper Networks Inc forecast revenue and profit below analysts' expectations for the ongoing quarter, citing delays in closing the sale of its routing devices to some customers in North America.

JDS Uniphase said that on an adjusted basis, it expects profit to range between 8 cents and 12 cents per share on net revenue of $405-$425 million in the first quarter ending Sept. 27.

Analysts on average were expecting earnings of 14 cents per share on revenue of $440.9 million, according to Thomson Reuters I/B/E/S.   Continued...