JDS Uniphase Corp To Spin Off Optical Unit, Shares Up 14%

JDS Uniphase Corp JDSU traded sharply higher in the extended session Wednesday on news it will spin off its optical components and subsystem operation as a separate company.

JDS said the spin-off to shareholders, expected by the third quarter of 2015, will create "clearer investment profiles" for both resulting companies and boost the value of shares.

The operation to be spun off serves a $7.4 billion optical communications market expected to grow at a compounded rate of 11 percent over the next four years. It also serves the $2.5 billion commercial lasers market, growing at seven percent annually, JDS said.

Operations retained following the spin-off will continue to focus on the $7 billion network and service enabling market -- expected to grow at six percent to eight percent annually, the company said.

JDS named Alan Lowe chief executive of the soon-to-be created optical company. Lowe has served as president of the optical unit since 2008.

JDS traded recently up more than 14 percent at $13.81 a share.