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URL:  https://boards.fool.com/rm-analysis-jdsu-q399-11766274.aspx

Subject:  RM Analysis: JDSU, Q3/99 Date:  1/7/2000  3:47 AM
Author:  Phileo Number:  5093 of 8329
Ok, This post serves 2 purposes:
1) celebrate my first post to this board.
2) Trying to get a sneak peek of next week's RM Article on ranking JDSU). 


Financial AnalysiCompany Being Evaluated                        Competitor #1   Competitor #2  Competitor #3

                 JDS Uniphase Corp.                          E - Tek Dynamics     Nortel      SDL Inc.
                     (JDSU)                                      (ETEK)            (NT)       (SDLI)
                 Current Period Year-ago PeriodYear-over-Year     Current Period  Current Period Current Period
                   Sept 30/99     Sept 30/98      Growth           Sept 30/99      Sept 30/99     Sept 30/99
Income Statement . . .
  Sales                  230.10          57.40     3.01                   60.34        5393.00          47.51
  Cost of Goods S        125.20          28.90     3.33                   30.18        3099.00          26.66
  Net Income            (113.90)          8.10      N/A                    6.68           8.00           7.38
  Shares Outstand        168.50          84.50     0.99

Balance Sheet . . .
  Cash & Equivale        495.60          75.40     5.57                  178.72        1213.00         206.06
  Current Assets       1,218.70         463.60     1.63                  268.93       11673.00         368.99
  Short-term Debt          0.00           0.00    No Debt                  6.98         351.00           0.00
  Current Liabili        148.80         148.80     0.00                   69.74        7019.00          30.26
  Long-term Debt           0.00           0.00    No Debt                 17.64        1470.00           4.25
                                                                           1.00           1.00           1.00Competitors
Margins & Ratios . . .
  Gross Margins            0.46           0.50    (4.06)                   0.50           0.43           0.44      45.5%
  Net Margins             (0.50)          0.14    (63.61)                  0.11           0.00           0.16       8.9%
  Cash-to-Debt          No Debt!       No Debt!  No Debt!                  7.26           0.67          48.48       0.86
  Net Cash               495.60          75.40     5.57                  154.09        -608.00         201.81      -84.0
  Fool Flow Ratio          4.86           2.61     0.86                    1.44           1.57           5.38       2.80


                  Continue Here


Ranking Rule Makers

1) Brand          Points (0-1)                                3) Financial Dire Points (0-3)
Familiarity                    0                              Sales Growth                   3
Openness                       1                              Gross Margins                  0
Optimism                       1                              Net Margins                    0
Legitimacy                     1                              Shares Outstandin              0
Inevitability                  0                              Cash-to-Debt                   3
Solitariness                   1                              Fool Flow Ratio                0
Humor                          1                              Expansion Potenti              3
  Subtotal                     5                                Subtotal                     9


2) Financial Loca Points (0-2)                                4) Monopoly Status Points (0-4)
Mass Market Habit              1                              Gross Margins                  2
Gross Margins                  1                              Net Margins                    0
Net Margins                    0                              Net Cash                       4
Cash-to-Debt                   2                              Fool Flow Ratio                0
Fool Flow Ratio                0                              Convenience                    4
Your Interest                  1                                Subtotal                    10
  Subtotal                     5
                                                              5) Your  Enjoyment             1

                   Total Score               30 Third Tier

Summary- (score/total)
Brand: 5/7
Financial Location: 5/12
Financial Direction: 9/21
Monopoly Status: 10/20

JDSU loses points in the following areas:
1) Net Margins - The merger with JDS Fitel in Jan/99,
and subsequent acquisitions (see http://www.jdsunph.com/html/corpinfo/faqs.cfm )
led to these one time charges which brought down the
net income.
As the growth of JDSU matures, I expect them to report
+ve earnings again.

2) Flowie - JDSU scored a 4.86!!!! Current Assets far
bigger than cash on hand. JDSU is getting lots of
cash, but it's not able to retain the cash because of
its current growth stage (lots more mergers &
acquisitions to come this year!)

3) Financial Direction - The acquisitions and expansion
(JDSU is acquiring more real estate to build up its
manufacturing plants) make year over year comparisons
difficult.

4) Monopoly Status - Still not considered a monopoly
(at least not according to this RM Ranker!)



Comments and Feedback welcome.


Thx.
Cheers,
Albert
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