To separate into two separate public companies; Reaffirms Q1 $0.08-0.12 v $0.10e, R$405-425M v $416Me- filing
- Two Companies:
An optical components and commercial lasers company (CCOP) consisting of JDSUs current Communications and Commercial Optical Products segment. The CCOP company, with its long-standing reputation for optical innovation and quality, serves a $7.4 billion optical communications market expected to grow at a compounded rate of 11% over the next four yearsi. It also addresses an approximate $2.5 billion commercial lasers market, growing at a forecasted 7% annually.
A network and service enablement company (NSE) consisting of JDSUs current Network Enablement, Service Enablement and Optical Security and Performance Products (OSP) segments. The stand-alone NSE company will be a leader in its core businesses, addressing an approximate $7 billion network and service enablement market expected to grow at 6-8% annuallyiii. The NSE company will primarily focus its investments in higher growth markets, particularly software supporting virtualized and software-defined networks. The optical security business addresses an approximate $1.1 billion market growing at an expected 6-8%.
- JDSU shareholders will receive a pro rata distribution of shares in the stand-alone CCOP company via a tax-free spinoff. The separation of the two companies and the distribution of the new CCOP companys shares to JDSU shareholders is expected to be completed in the third calendar quarter of 2015.- expects to incur significant one-time charges related to the separation and to achieving the expense savings referenced in the highlights. Cash expenditures to obtain the cost savings are expected to be between $75 and $100 million.