JDSU sees growth in anti-counterfeit technologies business
Phil Taylor, 03-Feb-2012
JDS Uniphase has seen "steadily
rising demand" for its anti-counterfeit technologies in the second
quarter of its fiscal year, with combined sales for pharmaceutical
and currency applications rising around 13 per cent
year-on-year.
The company's Advanced Optical Technologies (AOT) division, which
encompasses its authentication and brand protection businesses,
contributed $53.7m or 13 per cent of the company's total revenue in
the quarter ended December 31, 2011. Operating profit was steady at
around $15m.
Currency protection and related applications makes up the lion's
share of JDSU's AOT business via its Flex optically-variable
pigment (OVP) technology, which is used on the currencies of more
than 100 countries around the world, according to JDSU chief
executive Thomas Waechter.
"We continue to see steadily rising demand for our optically
variable pigments, driven largely by continued adoption of these
products in banknote and other high-security anti-counterfeiting
applications," he said in a conference call to discuss the
second-quarter results.
The company said it is also encouraged by the take-up of its next
generation product, optically variable magnetic pigment (OVMP),
which is currently deployed in 12 currencies.
"OVMP's unique attributes enable banknote designers to add depth
and motion effects that cannot be readily simulated by conventional
printing techniques or by using conventional printing materials,"
said the company.
JDSU is planning to boost capacity for OVPs and OVMPs by around 25
per cent later this year with a new production line in its Beijing
manufacturing facility that should be online in early 2013.
The company does not go into too much detail about its
pharmaceutical operations for obvious reasons, but has a
long-running collaboration with security ink specialist SICPA,
which provides technology and services to a number of
drugmakers.
Anti-counterfeiting technologies "represent a smaller portion of
our revenue but are a significant contributor to profitability,"
said Waechter.
Across all its operations, which include broadband test and
measurement solutions and optical products for communications, JDSU
achieved second-quarter revenues of $413m, at the high end of
management's guidance range.
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