NEW YORK (AP) -- Shares of JDS Uniphase neared a new yearly high Thursday after the company, which makes equipment for optical communications networks, returned to a profit and beat Wall Street expectations in the latest quarter.
The Milpitas, Calif., company late Wednesday posted net income of $4.1 million, or 2 cents per share, for the second quarter. That compared with a net loss of $10.2 million, or 4 cents per share, in the same quarter a year earlier. Excluding amortization, restructuring and other items, it earned 18 cents per share, 4 cents more than analysts had expected.
Revenue, which jumped 5 percent, also topped most expectations.
Analyst James Kisner at Jefferies & Co. noted that most of the beat came from the division that makes test equipment for optical networks. He called the company's guidance "mixed," but its overall outlook was bullish, pointing to an early-stage recovery in capital spending by its customers. He raised his price target on the shares from $16 to $19 and kept a "Buy" rating.
Shares of JDS Uniphase Corp. closed up $2.11, or 17 percent, at $14.51. The day's high was $15.14, while the 52-week high set in February 2012 was $15.17.