Santa Rosa bright spot for JDSU

<p>JDSU's Santa Rosa optical business was the company's most profitable unit last quarter as the communications equipment maker struggled with weak sales, JDSU said Wednesday. </p><p>The Advanced Optical Technologies division posted $51 million in revenue in the fourth quarter, down just 4 percent from the same period last year. </p><p>Companywide, JDSU sales of $276 million fell 29 percent from the fourth quarter in 2008. The company lost $60 million, or 28 cents per share, for the period ending June 27, compared to a loss of $30 million a year ago, or 13 cents a share. </p><p>The Santa Rosa division makes color-shifting pigments that are used to print the national currencies of 100 countries, including the United States. The pigments, which change colors when viewed from different angles, make it harder to counterfeit currency. </p><p>The special inks also are used for product decoration and authentication. In May, JDSU won a contract to supply authentication technology to Muhammad Ali Enterprises, which markets clothes, collectibles, sporting goods and memorabilia that carry the boxing champ's name. </p><p>The Santa Rosa business also makes technology for defense and aerospace customers, including lenses for night vision goggles. </p><p>JDSU has about 530 employees in Santa Rosa. It acquired the business from Optical Coating Laboratory in 2000. </p><p>The unit had fourth-quarter operating profit of $19 million, beating two larger JDSU divisions that supply optical components and test equipment to telecom network operators. </p><p>Those segments suffered as communications providers cut back sharply on capital spending during the economic downturn. </p><p>The Santa Rosa business gained from a diverse product line, JDSU president Tom Waechter told Wall Street analysts in a conference call. </p><p>“It showed top line resilience despite the economic conditions,” he said. </p><p>JDSU continues to cut costs, outsourcing much of its manufacturing to factories in China and consolidating its operations in the United States. </p><p>Still, the company posted an annual loss of $866 million on $1.3 billion in sales for 2009. The loss included $760 million in impairments related to JDSU's slumping stock price. </p><p>JDSU lost $22 million on sales of $1.5 billion in 2008.</p><p>The company forecast revenue of $283 to $300 million for the first quarter of 2010. </p><p>Shares closed at $5.79 on Wednesday and fell 3 cents to $5.76 in after-hours trading.</p>