Boston, MA 09/11/2014 (wallstreetpr) – Optical products and communications test and measurement solutions provider, JDS Uniphase Corp (NASDAQ:JDSU) President and Chief Executive Officer, Tom Waechter, said that two fundamentally focused companies would place themselves in a better position to stay ahead of hurrying rate of technology change. He was giving a reason as to why its board has decided to split into two publicly traded companies.
CEO Speaks
The JDS Uniphase Corp (NASDAQ:JDSU) President and CEO said that it has invested a lot in the last five years in innovation, which was well-associated with the industry’s available growth opportunities, a statement from the company indicated. It included data center expansion, cloud networking and software-defined networks. Therefore, the opportunities go beyond the purview of the traditional telecom ecosystem. As a result opportunities were abundant in enterprise, web services, over-the-top and other areas.
Tom Waechter said that the time has come for the company to be split into two so as to focus separately on the hurried rate of technology changes taking place so as to compete more effectively in every market that the company caters to currently. He also said that the transition would provide these businesses further opportunities to make the most of their success. It would also offer shareholders a diverse investment opportunity in two growth-oriented markets.
Splitting Two Companies
JDS Uniphase Corp (NASDAQ:JDSU) said that its board has decided to separate the company into two publicly traded companies. As a result, its optical components and commercial lasers or CCOP comprising its Communications and Commercial Optical Products division would take care of the $7.4 billion market. The optical communication sector is predicted to record compounded pace of 11% in the next four years.
Another company with network and service enablement comprising its Network Enablement, Optical Security and Performance Products and Service Enablement division would focus approximately $7 billion market. The company expects the market to witness 6% – 8% growth a year.
The shareholders of JDS Uniphase Corp (NASDAQ:JDSU) can expect a tax-free pro rata spinoff of CCOP. The separation of the company is likely to be completed in the third quarter of the calendar year 2015.
