3 March 2015

JDSU to spin off CCOP business as Lumentum by Q3/2015; NE, SE and OSP businesses to become Viavi

JDSU of Milpitas, CA, USA has filed a registration statement with the US Securities and Exchange Commission (SEC) in connection with the spinoff of its Communications and Commercial Optical Products (CCOP) business (announced last September), which will result in two independent, publicly traded companies. CCOP will become Lumentum Holdings Inc. At the time of this separation (expected by third-quarter 2015), JDSU's Network Enablement (NE), Service Enablement (SE) and Optical Security and Performance Products (OSP) businesses will be renamed Viavi Solutions Inc.

"We are creating two unique brands - both representing well-established expertise and market leadership - and positioning them with greater customer focus and agility," says president & CEO Tom Waechter.  

Lumentum focusing on optical communications and commercial lasers

Shares of Lumentum common stock will be distributed on a pro rata basis to JDSU stockholders in a manner intended to be tax-free for US federal income tax purposes. Lumentum intends to apply to list its shares on the Nasdaq Stock Market under the ticker 'LITE'.

Lumentum will specialize in optical components and subsystems for the telecoms market, with high-growth opportunities in data communications, driven by the rapid expansion of cloud networking and data-center infrastructure, and in high-performance lasers for both macro and micro materials processing applications. Lumentum will also focus on growing its 3D sensing and commercial lasers business and expanding into other market segments that can benefit from optical and laser technologies. 

Alan Lowe will be CEO of Lumentum. He joined JDSU in September 2007 as senior VP of the Lasers business and in 2008 he became president of JDSU's newly formed CCOP business segment (combining the firm's Optical Communications and Lasers businesses). Lowe led the transformation of the combined business by focusing on the customer, investing in market-leading innovation, and streamlining and improving operational execution, says JDSU.

Aaron Tachibana will be Lumentum's chief financial officer. He joined JDSU in November 2013 as VP of finance and corporate controller, responsible for driving financial close process improvements, enhancing organizational performance, and reducing operating expenses. Prior to JDSU, he was CFO at Pericom Semiconductor Corp.

Viavi Solutions focusing on network and application visibility

JDSU says that its new Viavi brand has a track record of collaboration with service providers and enterprises worldwide through periods of intense network transformation. The firm has the ability to provide solutions for end-to-end network and application visibility from a portfolio of instruments, software and services, addressing customers' needs to profitably scale to meet the demands of the fast-growing volume of connected devices and applications, and to transition to virtualized, software-based networks. 

Viavi's OSP business is said to be a leader in anti-counterfeiting solutions for currency authentication and high-value optical components and instruments for security, safety, electronics and other applications.

Leading Viavi will be Tom Waechter, who became president & CEO of JDSU in January 2009 and executed a strategy to enhance investment in market-based innovation. He joined JDSU as president of Communications Test and Measurement (the predecessor to JDSU's NE business) in October 2007.

JDSU CFO to leave firm after separation

Also, following the expected completion of the CCOP spinoff and necessary fiscal year-end filing of an annual report for Viavi, chief financial officer Rex Jackson will leave JDSU at the end of September. He joined JDSU in 2011 as senior VP, business services, and was promoted to CFO in January 2013. Prior to JDSU, he was CFO of Symyx Technologies.

"Rex has provided outstanding leadership during an eventful period of change at JDSU, played a key role in charting the bright futures for Viavi and Lumentum, and strengthened our finance, information technology and other shared services operations," comments Waechter. 

Current JDSU stockholders will own shares in both corporations following the separation. The spinoff is subject to the satisfaction or waiver of a number of conditions, including the registration statement on Form 10 for Lumentum common stock being declared effective by the SEC. Approval by JDSU's stockholders is not required for completion of the separation.

See related items:

JDSU reports quarterly 40G/100G transmission optical component revenue growth of 30% year-on-year

JDSU separates into optical components and commercial lasers company and network and service enablement company

Tags: JDSU Optical communications

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