JDS Uniphase shares fall on 3Q earnings report

Shares of JDS Uniphase Corp. sank Thursday after the communications equipment company reported fiscal third-quarter revenue below analysts' expectations and predicted lower-than-expected fourth-quarter revenue.

The Milpitas, Calif.-based company's shares fell 95 cents, or 17 percent, to $4.62.

Late Wednesday, JDSU said it lost 40 cents per share _ or 3 cents per share when excluding special items, which is what analysts polled by Thomson Financial expected.

The company's revenue fell 27 percent to $280.6 million; analysts had expected $284.8 million.

JDSU predicted $265 million to $285 million in adjusted fourth-quarter sales. Analysts are looking for $290.5 million.

In a client note, Morgan Keegan & Co. analyst Paul A. Bonenfant kept his "Market Perform" rating and said the company's forecast probably caused the stock to decline.

"JDSU is a strategic supplier to both carriers and network equipment providers and eventually growth resumes, yet management continues to highlight limited visibility and hesitates to call a bottom," he said.

The analyst said that the stock is a "quality investment for long-term holders" due to factors like its strong balance sheet, but "barring a sustained recovery has limited near-term upside."