JDSU (NASDAQ:JDSU) Shares Explode As They Blast Past Earnings Expectations

JDS Uniphase (NASDAQ:JDSU) turned things around in their latest quarter, surging to a profit after a big loss in the same quarter last year, as they handily beat analysts' expectations.

Investors rewarded the company, pushing up the share price by over 22 percent in mid-day trading, at point reaching over 24 percent.

Part of the big turnaround is the huge success of Microsoft's (NASDAQ:MSFT) Kinect device, which exploded in sales for the software giant, and of which JDSU supplies two of the components for.

With Microsoft sure to enhance and expand Kinect, JDSU is positioned to ride the Kinect success going forward.

Also of note was the demand for JDSU testing products in relationship to the burgeoning traffic on the Internet, as telecommunications companies grow their networks.

Net income for the second fiscal quarter reached $23.6 million, or 10 cents a share, up from the loss of $19.5 million, or 9 cents a share, in the same quarter last year. Revenue came in at $473.5 million, a big gain over the $342.9 million in revenue generated last year.

After adjustments, income was 29 cents a share, far above the 19 cents a share analysts had estimated. Analysts were looking for revenue to reach $438.4 million for the quarter.

Guidance for the current quarter from JDSU was for revenue to come in at a range of $400 million to $460 million.

JDS Uniphase was trading at $22.00, gaining $4.07, or 22.70 percent, as of 12:23 PM EST.