JDSU to Acquire Network Solutions Test Business from Agilent
February 11 2010 - 3:00AM
PR Newswire (US)
Acquisition Targets Emerging LTE/4G Wireless Market MILPITAS,
Calif., Feb. 11 /PRNewswire-FirstCall/ -- JDSU today announced that
it has entered into a definitive agreement to acquire the Network
Solutions communications test business of Agilent, including the
unit's innovative Long Term Evolution (LTE), or 4G, network
verification and deployment products, for $165 million in cash. The
parties expect to close the transaction, which is subject to
receipt of customary regulatory approvals, in the June calendar
quarter 2010. The Agilent unit being acquired by JDSU had annual
revenue for its fiscal year ending October 31, 2009 of $162 million
from global sales of service assurance monitoring systems, drive
test and protocol test instruments used by leading service
providers and equipment manufacturers worldwide. JDSU expects the
acquisition to be accretive to non-GAAP earnings per share on a
quarterly basis and for the full fiscal year starting in fiscal
2011. The acquisition significantly expands JDSU's communications
test position, including the emerging market for LTE/4G solutions
required by the dozens of wireless service providers and network
equipment manufacturers upgrading to this next-generation
technology. LTE will provide much higher bandwidth to support
mobile data and video applications on handsets, notebooks, portable
readers and gaming devices. More than 50 wireless service providers
worldwide have announced plans to deploy LTE, including such
companies as AT&T, Bell Canada, China Telecom, China Mobile,
T-Mobile Germany, NTT DoCoMo and Verizon Wireless. Test products
are used throughout the LTE development, deployment and operational
life-cycle. "This acquisition establishes JDSU as a market leader
in wireless test instruments and systems and enables us to provide
customers with new innovative LTE solutions as they deploy this
next-generation mobile data technology," said Tom Waechter,
president and chief executive officer of JDSU. "JDSU gains
market-leading technology and a talented employee team that will
fit well with JDSU's customer-centric culture." The Agilent unit
being acquired by JDSU has approximately 700 employees with
business operations located in Colorado, the U.K., Singapore and
Beijing. New Product Lines for JDSU With the acquisition, JDSU will
broaden its wireless service assurance and instruments business
with the addition of the following customer offerings: -- Service
Assurance--Agilent's wireless and wireline service assurance
solutions are the market leader in helping service providers deploy
services and manage and operate their networks for maximum
reliability, efficiency and customer satisfaction. -- Protocol
Analyzers--Agilent's network protocol analyzers instruments are
used both for lab and field testing by network equipment
manufacturers and wireless service providers and support such
protocols as WiMAX(TM), Bluetooth, 3G and emerging 4G/LTE
networking technology. Test applications include: integration,
interoperability, field trials, deployment, troubleshooting and
operations. -- Wireless Drive Test--Agilent's E6474A drive test
network optimization platform and instruments are used by service
providers to measure performance and to troubleshoot network
coverage in support of all wireless technologies including LTE and
WiMAX(TM). JDSU Financial Analyst Call JDSU will hold a financial
analyst conference call today at 8:30 a.m. Eastern Time (5:30 a.m.
Pacific Time) to discuss the acquisition. The call will be hosted
by Tom Waechter, president and chief executive officer, and Dave
Vellequette, chief financial officer. The call is available through
a live audio broadcast via the Internet at
http://www.jdsu.com/investors or by dialing 866-700-6979 within the
U.S. and Canada or 617-213-8836 from abroad. The participant
passcode is 49347980. The webcast will also be archived on
http://www.jdsu.com/investors. A telephonic playback of the
conference call will be available following the call until
Thursday, March 11, 2010. The replay can be accessed by calling
888-286-8010 within the U.S. and Canada and 617-801-6888 from
abroad. The replay passcode is 53223548. About JDSU JDSU (Nasdaq:
JDSU; and TSX: JDU) enables broadband and optical innovation in the
communications, commercial and consumer markets. JDSU is the
leading provider of communications test and measurement solutions
and optical products for telecommunications service providers,
cable operators, and network equipment manufacturers. JDSU is also
a leading provider of innovative optical solutions for
medical/environmental instrumentation, semiconductor processing,
display, brand authentication, aerospace and defense, and
decorative applications. More information is available at
http://www.jdsu.com/. Certain statements contained in this press
release that are not purely historical are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Act of 1934. Such
forward-looking statements include, but are not limited to any
statement or implication that Agilent's Network Solutions
communications test operations, sales channels and business will be
successfully incorporated into JDSU, or that Agilent's Network
Solutions communications test products described in this
presentation (i) will be successfully introduced or marketed, (ii)
will be qualified and purchased by our customers, or (iii) will
perform to any particular specifications or performance or
reliability standards. Such forward-looking statements involve
risks and uncertainties that, if realized, could materially impair
the Company's results of operations, business, and financial
condition. These risks and uncertainties include the following,
among other things: (a) our current visibility as to customer
demand levels, future market growth and the timing, extent,
location, requirements and nature of network build-outs and
technology transitions, is extremely limited; (b) our ability to
retain key employees within the Agilent business unit being
acquired during the transition phase after the transaction closes;
(c) our ability to integrate this new business into our
Communications Test and Measurement business segment and corporate
infrastructure without interruption to the operation of the
business and while generating positive operating income; (d) the
products may not (i) perform as expected without material defects,
(ii) be manufactured at acceptable volumes, yields, and cost, (iii)
be qualified and accepted by our customers, and (iv) successfully
compete with products offered by our competitors, (e) anticipated
synergies in product innovation and development and services may
not materialize; and (f) factors discussed from time to time in
reports filed by the Company with the Securities and Exchange
Commission. The forward-looking statements contained in this
presentation are made as of the date hereof, and the Company does
not assume any obligation to update or qualify any of the
statements made herein.
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Press/Industry, Jim Monroe, +1-240-404-1922, , or Investors,
Michelle Levine, +1-408-546-4421, , both of JDSU Web Site:
http://www.jdsu.com/
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