JDS Uniphase (NASDAQ: JDSU) raised its revenue guidance last night. The company had seen Q2 revenue of $332M-$352M and now sees revenue at $360M-$365M; consensus is for $343.29M.

The company cited strong performance by its communications test and measurement segment, which has been an area of focus for JDSU CEO, Kevin Kennedy, a former top executive at Cisco (NASDAQ: CSCO).

However, JDSU's test and measurement business is focused more on IP and optical traffic than the test and measure tools used in the semiconductor space. Two different businesses.

This is another data point that the optical business continues to improve. Ciena (NASDAQ: CIEN) should also benefit from this news.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

CDC Corp. (NASDAQ: CHINA) is a favorite speculative idea for 2007 from momentum trading expert, Kevin Kennedy. The editor of The Coolcat Report notes, "CDC operates companies focused on enterprise software applications and services, mobile applications, online games, and the Chinese portal China.com.

"The company's software solutions are used by more than 5,000 customers worldwide within the manufacturing, financial services, health care, home building, real estate, and wholesale and retail distribution industries.

"Its China.com unit is a leading Mobile Value Added Services (MVAS) provider and Internet services company operating principally in China. CDC Mobile is focused on providing MVAS products to subscribers in China. CDC Games Limited is one of the market leaders of online and mobile games in China with more than 37 million registered users.

"CDC reported blowout third-quarter results in November. Total revenue was $78.2 million, an increase of 26%. Earnings per share tripled to $0.09 per share. Future plans include an initial public offering of either CDC Software or CDC Games and a continued emphasis on acquisitions. The stock is on a five-month win streak, including a 41% surge in November."