JSDU said that it plans to separate its operations into two publicly traded companies: an optical component and commercial lasers company and a network and services company.
The former company, known as CCOP, would consist of JDSU's current Communications and Commercial Optical Products segment, while the latter includes the Network Enablement, Service Enablement and Optical Security and Performance Products segments.
It expects to conduct the company separation through a tax-free pro rate spin-off of CCOP to JDSU's shareholders.
Before the separation occurs, JDSU said it expects to "incur significant one-time charges related to the separation and to achieving the expense savings" and that "cash expenditures to obtain the cost savings are expected to be between $75 and $100 million."
By conducting this split, JDSU said it would allow CCOP to achieve three goals: focus more on its position in telecom, expand its position in the high-growth datacom market and grow its commercial lasers and 3-D sensing businesses, while NSE can transition to a more software-centric company aligned with the industry's shift to software defined networks.
Leading up the CCOP stand-alone company will be Alan Lowe, who has served as CCOP's president since 2008 and executive vice president of JDSU, while current CEO Tom Waechter will continue as head of the networks company.
JDSU said it expects to complete the split in the third quarter after meeting customary regulatory approvals.
- see the release
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