MANHASSET, N.Y. JDS Uniphase Corp. has sold the assets of its CATV business to communications semiconductor and subsystems supplier Emcore Corp. for $1.5 million.
Struggling with profitability in recent quarters, JDS Uniphase (San Jose, Calif.) has been consolidating operations. In April, the company sold its Fuzhou, China operation to electronic manufacturing services company Fabrinet, and announced it would move over 800 manufacturing jobs to Shenzhen, China, resulting in a 15-percent reduction in its U.S. workforce.
In its latest move, JDS will sell to a number of broadband and fiberoptic product lines including hybrid fiber coaxial (HFC) 1550-nm broadcast transmitters, 1310-nm transmitters linking cable network hubs and nodes, 1550-nm DWDM quadrature amplitude modulation (QAM) transmitters, and associated analog receivers, amplifiers, and microwave over fiber specialty products for defense and satellite communications.
In addition to paying JDS Uniphase $1.5 million for the acquired product lines, Emcore (Somerset, N.J.) has also agreed to purchase $2.8 million to $3.8 million of components and parts for use in the manufacture of the acquired products over the next two years.
JDS Uniphase's CATV business had revenues of about $20 million over the prior completed four quarters. The acquired businesses will be part of Emcore's fiber optic segment and are expected to increase the company's projected fiscal 2006 revenues by $10 to $15 million.
Under the agreement, Emcore will hire an unspecified number of JDS Uniphase employees to assist in the product design, marketing, sales, and application engineering for the acquired products. Emcore plans to establish a small design center in northern Pennsylvania, near several major CATV product customers.