JDSU

JDSU, formally known as JDS Uniphase Corporation, was a telecommunications technology company created in 1999 through the merger of JDS Fitel and Uniphase. The combined company developed and manufactured equipment and components used in optical communications networks, along with communications test and measurement systems, lasers, authentication and decorative optical products, and other specialized optical technologies. Its operations served network equipment manufacturers, telecommunications carriers, cable operators, data-network providers, electronics companies, and industrial customers. The company brought together two different but complementary histories. Uniphase began in 1979 in a San Jose, California garage and initially produced lasers for semiconductor manufacturers and scanners. JDS Optics was established in Ottawa, Ontario, in 1981 by Philip Garel-Jones, Gary Duck, Jozef Straus, and Bill Sinclair. The JDS name was derived from the surnames or initials associated with Jones, Duck, Straus, and Sinclair. JDS Optics later became associated with Fitel through a partnership and operated as JDS Fitel before merging with Uniphase. JDSU expanded rapidly during the late-1990s telecommunications boom. It acquired several important optical technology companies, including Optical Coating Laboratory Inc. (OCLI), E-TEK Dynamics, and SDL. These transactions significantly broadened its portfolio in optical coatings, wavelength-management components, lasers, and related photonics technologies. The acquisition strategy also made JDS Uniphase one of the most prominent suppliers to the rapidly expanding fiber-optic communications sector, although the scale and timing of the deals left the company highly exposed to a later collapse in telecommunications capital spending. JDS Uniphase became a prominent technology-market stock during the late 1990s and early 2000s. Its share price rose dramatically and the company carried out several stock splits while using its high market valuation to support an acquisition-led expansion. After the telecommunications downturn and the bursting of the dot-com bubble, demand weakened sharply. In 2001, the company announced a very large goodwill write-down and began a major restructuring program. Employment fell from nearly 29,000 people to approximately 5,300, while facilities and factories were closed in several parts of the world. The market value of the company also declined substantially. The company subsequently sought to rebalance its business toward communications testing as well as optical components. In 2005, it acquired Acterna, a provider of network test and measurement equipment, and made Acterna part of its Test and Measurement Group. In 2013, JDSU announced the acquisition of Network Instruments, a network-performance management company, for approximately $200 million. These moves expanded its ability to serve customers managing, testing, and troubleshooting communications infrastructure rather than relying solely on the capital cycle for optical-network construction. JDSU changed locations and leadership structure as it consolidated its operations. After Jozef Straus retired as chief executive in 2003, the company moved its headquarters to San Jose, California. It later moved its headquarters to Milpitas, California, in 2006. On August 1, 2015, JDSU was separated into two independent successor companies: Viavi Solutions, which received the communications test and measurement business, and Lumentum Holdings, which received the optical and photonic products business. The split ended JDSU as a standalone corporate entity while preserving its principal operating activities in two successor companies.

JDSU was the corporate successor to two optical-technology businesses with roots in Canada and the United States. Uniphase was established in 1979 in a San Jose garage and initially focused on lasers used by semiconductor manufacturers and scanners. In Ottawa, Ontario, Philip Garel-Jones, Gary Duck, Jozef Straus, and Bill Sinclair founded JDS Optics in 1981. Its name reflected the people associated with the company’s founding, and the business later developed a relationship with Fitel, a fiber-optic and optical-connector company. The resulting operation became known as JDS Fitel. The merger of JDS Fitel and Uniphase in 1999 created JDS Uniphase Corporation, commonly abbreviated as JDSU. The combination joined optical components and photonics expertise with laser and communications technologies at a time when telecommunications operators and network builders were investing heavily in fiber-optic infrastructure. JDSU quickly became one of the sector’s most visible companies and used its elevated stock valuation to pursue an aggressive acquisition program. Among its largest transactions were the acquisitions of Optical Coating Laboratory Inc., E-TEK Dynamics, and SDL. OCLI added optical-coating capabilities, while E-TEK and SDL strengthened the company’s position in optical-network components and lasers. The deals gave JDSU a broad product base, but also increased its exposure to the telecommunications investment cycle. During the late 1990s, JDS Uniphase’s stock became a favorite among technology investors, with dramatic price appreciation and several stock splits. This market value helped finance further expansion. The telecommunications downturn after the dot-com boom exposed the risks of that strategy. In July 2001, JDS Uniphase announced a major goodwill write-down. It then implemented a Global Realignment Program involving large-scale workforce reductions and the closure of factories and other facilities around the world. Employment declined from nearly 29,000 people to approximately 5,300, and the company’s share price fell from roughly $153 to below $2 according to the cited historical account. The contraction transformed JDSU from a rapidly expanding acquisition vehicle into a substantially smaller and more focused technology supplier. In 2003, Jozef Straus retired as chief executive. The company consolidated its headquarters in San Jose, California, and moved again in 2006 to Milpitas, California. JDSU also broadened its business beyond optical components. Its 2005 purchase of Acterna brought network test and measurement products into the company and created the basis for a larger Test and Measurement Group. Acterna itself had been formed through the 2000 combination of Wavetek Wandel Goltermann and TTC. In 2013, JDSU announced the purchase of Network Instruments, adding network-performance management capabilities. The final corporate transition came in 2015. Rather than continuing as a single diversified company, JDSU was separated on August 1 into Viavi Solutions and Lumentum Holdings. Viavi received the communications test and measurement operations, while Lumentum received the optical and photonic products business. The transaction ended JDSU’s existence as an independent listed company, but its technology portfolios and organizational legacy continued through the two successor businesses. JDSU also faced shareholder-related litigation following the 2001 telecommunications collapse. Connecticut alleged that JDSU and four executives had misled investors by withholding information about the company’s impending deterioration. The matter proceeded to trial in 2007, unusual compared with many securities disputes that end earlier through dismissal or settlement. The company was acquitted of all charges in November 2007.

• 2015

  JDSU splits into Viavi Solutions and Lumentum

  [1]JDSUen.wikipedia.org

  The company was separated into Viavi Solutions and Lumentum Holdings on August 1, ending JDSU as an independent company.

• 2013

  Network Instruments acquisition announced

  [1]JDSUen.wikipedia.org

  JDSU announced a transaction to acquire Network Instruments and expand its network-performance management capabilities.

• 2007

  Company acquitted in Connecticut securities case

  [1]JDSUen.wikipedia.org

  Following a trial concerning alleged investor deception, JDSU was acquitted of all charges in November.

• 2006

  Headquarters move to Milpitas

  [1]JDSUen.wikipedia.org

  JDSU moved its headquarters from San Jose to Milpitas, California.

• 2005

  Acterna is acquired

  [1]JDSUen.wikipedia.org

  JDSU acquired Acterna and incorporated its network test and measurement activities into the Test and Measurement Group.

• 2003

  Straus retires and headquarters consolidate

  [1]JDSUen.wikipedia.org

  Chief executive Jozef Straus retired, and the company consolidated its headquarters in San Jose, California.

• 2001

  Telecommunications downturn triggers restructuring

  [1]JDSUen.wikipedia.org

  JDS Uniphase announced a major goodwill write-down and began a global realignment involving severe workforce and facility reductions.

• 1999

  JDS Fitel and Uniphase merge

  [1]JDSUen.wikipedia.org

  The merger created JDS Uniphase Corporation, later commonly referred to as JDSU.

• 1981

  JDS Optics is founded in Ottawa

  [1]JDSUen.wikipedia.org

  Philip Garel-Jones, Gary Duck, Jozef Straus, and Bill Sinclair founded JDS Optics in Ottawa, Ontario.

• 1979

  Uniphase begins operations

  [1]JDSUen.wikipedia.org

  Uniphase was started in a San Jose garage and initially made lasers for semiconductor manufacturers and scanners.

A diversified supplier of optical-network infrastructure, photonic components, and communications testing technologies, positioned between specialized photonics manufacturing and network operations equipment.

• Optical networking

  Optical communications products

  JDSU designed and manufactured optical components and systems used in fiber-optic communications networks. The portfolio was shaped by the company’s acquisitions in wavelength management, optical coatings, lasers, and related photonics technologies. These products supported the construction and operation of high-capacity telecommunications infrastructure.

• Telecommunications testing · 2005

  Communications test and measurement equipment

  The Test and Measurement Group supplied equipment and solutions for installing, validating, monitoring, and troubleshooting communications networks. The acquisition of Acterna substantially strengthened this business by adding established network-test products and expertise for carriers, cable operators, and other network service providers.

• Photonics and industrial technology · 1979

  Lasers

  JDSU’s laser activities traced back to Uniphase’s original work supplying lasers for semiconductor manufacturing and scanning applications. Over time, lasers became part of a broader photonics portfolio serving communications, industrial, and specialty optical applications.

• Network management software and tools · 2013

  Network performance management solutions

  Through its announced acquisition of Network Instruments, JDSU expanded into tools for observing and managing network performance. These capabilities complemented its hardware-oriented testing operations by helping customers analyze network behavior and identify operational problems.

• Custom optics

  Custom optics and specialty optical solutions

  JDSU also produced specialized optical technologies for authentication, decorative applications, optical coatings, and other custom uses. This business reflected the company’s effort to apply photonics expertise beyond conventional telecommunications equipment.

• 2015

  Separation into two successor companiesStrategy

  Background

  JDSU combined optical products with communications testing and related businesses, creating a diversified portfolio with different operating and investment characteristics.

  Action taken

  On August 1, JDSU was split into Viavi Solutions, focused on communications test and measurement, and Lumentum Holdings, focused on optical and photonic products.

  Aftermath

  JDSU ceased to exist as a standalone corporate entity, while its principal businesses continued under the two successor companies.

  Source

• 2005

  One-for-eight reverse stock splitOther

  Background

  After the telecommunications-sector collapse and the company’s prolonged share-price decline, JDSU sought to adjust its share structure.

  Action taken

  The company announced a one-for-eight reverse stock split in September 2005.

  Aftermath

  The action consolidated outstanding shares but did not restore JDSU as an independent company after its later separation.

  Source

• 2001

  Launch of the Global Realignment ProgramStrategy

  Background

  The collapse in telecommunications investment after the dot-com boom sharply reduced demand for optical-network equipment and exposed the company to substantial goodwill and capacity pressures.

  Action taken

  JDS Uniphase announced a major goodwill write-down, reduced its workforce from nearly 29,000 employees to approximately 5,300, and closed factories and other facilities internationally.

  Aftermath

  The program transformed JDSU into a much smaller company and coincided with a severe decline in its market value and share price.

  Source

1. 1JDSUen.wikipedia.org
2. 2JDS Uniphase scores a win in securities caselaw.com
3. 3Defense verdict in JDSU securities trialdandodiary.com