High-tech security products are driving revenue growth at JDSU's Santa Rosa-based optical technology division, where quarterly sales are up 7.5 percent from last year.
The unit posted $58.7 million in revenue for the fourth quarter ended July 2, compared to $54.6 million a year ago.
JDSU's Santa Rosa business makes thin-film optical coatings and components for electronics, aerospace, office technology, 3-D cinema and video game applications. It has about 500 employees in Santa Rosa.
Its Flex unit sells color-shifting pigments used in currency printing to prevent counterfeiting. A third business segment, Authentication Solutions, creates holograms for authenticating credit cards and other financial instruments.
Demand for JDSU's security products is growing as financial institutions merge and launch new brands, CEO Tom Waechter told Wall Street analysts Wednesday.
New banking regulations also are helping sales, he said.
Earlier this month, JDSU partnered with a San Rafael firm, New Momentum, to offer an online brand monitoring service. It alerts brand owners to counterfeiting by tracking activity in global marketplaces, trade forums and auctions.
The service helps companies pinpoint and address illegal counterfeit and gray market transactions, JDSU said.
The company's Santa Rosa unit, called Advanced Optical Technologies, posted $231 million in sales for the full year, up 4 percent from 2010.
The division's customers include 3M, Dolby Laboratories, Lockheed Martin, Northrup Grumman and Kingston Technology.
Companywide, JDSU reported $472 million in revenue for the fourth quarter, up 21 percent from a year ago. Income was $9.3 million, compared to $1.5 million last year.
JDSU forecast companywide sales between $400 and $425 million for the first quarter.
Company shares fell Thursday to $10.21 on the Nasdaq exchange, down nearly 13 percent from Wednesday's close, after its forecast fell short of analyst targets.
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