MEDIA RELEASE PR38298
JDSU to Acquire Network Solutions Test Business from Agilent
MILPITAS, Calif., Feb. 11 /PRNewswire-AsiaNet/ --
Acquisition Targets Emerging LTE/4G Wireless Market
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
dialing 866-700-6979 within the U.S. and Canada or 617-213-8836 from abroad.
The participant passcode is 49347980.
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
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.
SOURCE JDSU
CONTACT: Press/Industry, Jim Monroe, +1-240-404-1922, jim.monroe@jdsu.com,
or Investors, Michelle Levine, +1-408-546-4421, michelle.levine@jdsu.com,
both of JDSU
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