JDS Uniphase Corp (JDSU) Has Kicked off 2013 in Style

JDS Uniphase is also looking to diversify in other areas, such as gesture recognition. The company brought on board its fourth customer for this technology in the previous quarter        , and would ramp up production for an upcoming gaming platform later this year. Apart from this, Uniphase also began shipments of 100G line cards in the previous quarter and is ramping up production of 40G and 100G coherent components.

Top class cost control

It’s clear that there is a lot of opportunity lying ahead for JDS Uniphase and the company has prepared itself well to benefit from the build out of faster networks and data centers. But another important aspect about it is the way it manages its costs.

As mentioned earlier, the company turned in a record non-GAAP gross margin of 48% in the previous quarter along with an adjusted operating margin of 11.3%. These metrics were better on both a year-over-year basis and a sequential basis, even though Uniphase brought in more revenue.

The company’s strategy of outsourcing its repair services apart from consolidation of contract manufacturing, proper supply chain management, and reduction of design costs have enabled it to improve margins.

The bottom line

I have always maintained that JDS Uniphase is one of the best optical networking stocks that one can buy and its recent quarterly report proves why. Uniphase combines solid cost management with cutting-edge technology, and its bright prospects make it a compelling investment option. What do you think?

The article This Stock Has Kicked off 2013 in Style originally appeared on Fool.com and is written by Harsh Chauhan.

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