May 4, 2011 / 8:50 PM / 7 years ago

UPDATE 2-JDS Uniphase sees Q4 growth driven by high bandwidth demand

* Sees Q4 adj. rev $455-$475 mln vs est $469.8 mln

* Sees strong growth for its tunable lasers and ROADM products

* Shares up 10 pct in extended trade (Adds analyst comments in para 10,12, conference call details in para 7, 8; updates shares)

By Siddharth Cavale

May 4 (Reuters) - JDS Uniphase Corp sees strong demand for its laser and fiber optic products as soaring demand for bandwidth and an explosion in volume of data traffic through mobile phones and the internet, drives sales.

Shares of the company rose 10 percent in after-market trade, after the company reported market beating first quarter results and forecast fourth-quarter adjusted revenue of $455-$475 million. [ID:nASA022DM]

Analysts are expecting the company to post revenue of $469.8 million for the fourth quarter, according to Thomson Reuters I/B/E/S.

Telcos are looking to spend-big on high end optic components to unclog and manage their networks using tunable lasers and ROADMs-- a device used to switch traffic between fiber optic networks-- which JDS Uniphase provides.

“We expect that the demand for ROADM products will continue to grow over the long term,” Chief Executive, Thomas Waechter, said on a conference call with analysts.

The demand for tunable laser products will also remain strong as customers remain committed to using these lasers within their growing optical networks, he added.

However, analyst Cobb Sadler with Catamount Strategic Advisors believes that even though there is significant upside to the next quarter, some concerns remain over the next 12-18 months.

“The high growth products like tunable lasers and supertransport blades segments could be second sourced,” he said.

Sadler believes JDSU’s tunable lasers could be sourced from rivals like Oclaro Inc and its ROADMs to Finisar Corp or Oclaro.

“They could most likely lose some market share from those two segments,” Sadler said.

Shares of Milpitas, California-based JDS, which counts Alcatel Lucent and Ciena Corp as its customers rose 9 percent to $21.8 in after-market trade.

They closed at $20 on Wednesday on Nasdaq. (Reporting by Swati Chitnis and Siddharth Cavale in Bangalore;Editing by Vyas Mohan, Prem Udayabhanu)

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