Analyst James Parmelee says results are in line with his expectations, and long-term fundamentals remain intact. He says he is "fine-tuning" Q3 2001 revenues to reflect customer inventory adjustments and uncertain near-term capital spending plans. JDS lowered its fiscal 2002 (June) sales from $6.15B billion to $5.7 billion. Parmelee thinks the company's revised EPS guidance removes an overhang on the stock price.
The upcoming merger with SDL Inc. (SLDI
) in February will serve as additional catalyst, Parmelee says. He sees $0.82 fiscal 2001 EPS, and $1.10 fiscal 2002 EPS.