Fiber-optic networking equipment maker JDS Uniphase Corp. is separating into two companies as it looks to stimulate growth.
The tax-free spinoff cuts Milpitas-based JDSU into an optical components and commercial lasers company and a network-equipment company.
"We believe two fundamentally focused companies best position us to stay ahead of the accelerating pace of technology change and to compete even more effectively across the unique markets we serve today," CEO Tom Waechter said in a statement.
The split is expected to be completed during the third quarter of 2015, and is estimated to decrease costs by $50 million. Waechter will be chief executive of the network company, while components division head Alan Lowe will become CEO of the optical business.
JDSU, founded in 1981, employs about 5,000 people. Its shares closed at $12.11 each on Wednesday but jumped more than 12 percent in extended trading following news of the split.
Companies: JDSU