JDSU turns color into cash

<p>Microscopic flakes of colorful metal are driving sales at JDSU’s Santa Rosa optical business, which grew 7 percent in the first quarter, the company said Thursday. </p><p>The flakes make up color-shifting pigments that protect international currency and decorate consumer goods including cell phones, golf clubs, running shoes, clothes, luggage and toys. </p><p>“It’s kind of like pixie dust,” said Jim Whittle, director of marketing at JDSU’s Flex Products unit in Santa Rosa. </p><p>On Thursday, JDSU’s advanced optical business reported sales of $54 million for the period ending Oct. 3, up 7 percent from the prior quarter and 1 percent above the same period a year ago. </p><p>The division, which employs 530 workers in Santa Rosa, makes pigments used to print currencies of 100 countries, including the United States. The pigments change colors when viewed from different angles, making it tougher for criminals to produce counterfeit bills. </p><p>The pigments also are added to paints, coatings and plastics for consumer goods and packaging. </p><p>Last month, JDSU introduced a new line of titanium-based pigments that meet strict environmental regulations and produce gem-like colors. Companies such as Apple and Nike are demanding pigments that don’t contain toxic metals, Whittle said. </p><p>“They wanted something more environmentally-friendly and we needed to go along with them,” he said. </p><p>Each microscopic flake contains layers of ultra-thin film that reflect light or allow it to pass through, like a tiny prism. </p><p>Each flake displays a range of colors depending on the angle of view. The flakes are made in vacuum machines where metals are vaporized onto thin film sheets. They range in size from 17 to 67 microns, less than the width of a human hair. </p><p>JDSU’s new emerald titanium flake shifts from deep green to blue to bright purple. The aquamarine flake shifts from silver to teal to blue. </p><p>JDSU works with designers to find the most exciting colors, said Chris Vomvolakis, a marketing communications specialist at Flex. </p><p>“Colors like this are really popular in Asia,” he said.</p><p>JDSU’s Flex business has its roots in Optical Coating Laboratory, which JDSU acquired in 2000. OCLI was Sonoma County’s first technology company, moving to Santa Rosa in 1951. It made thin-film optical coatings, mostly for the aerospace and defense industries. </p><p>On Thursday, JDSU reported a net loss of $32 million on companywide sales of $298 million. That compared with a loss of $64 million on $273 million in revenue for the prior quarter. </p><p>JDSU sales are down dramatically from last year’s first quarter, when it posted revenue of $377 million. The company’s largest business, telecom equipment, has been hit hard by the economic downturn, as communication providers cut back on network expansion and upgrades. </p><p>But first-quarter results showed demand is improving, said CEO Tom Waechter. </p><p>The results were better than analyst forecasts and JDSU stock rose 33 cents, or 5.4 percent, to $6.40, in after-hours trading.</p>