Tellabs Profits Down - Better Than Expected

Tellabs has reported that its first-quarter revenue dropped by 22% to US$362 million - although this was a smaller fall than was generally expected. First-quarter profits dropped to $7 million, compared with $17 million in the year-ago quarter. The company generated $44 million in cash from operations and increased its cash and cash equivalents to $1.18 billion.

"Tellabs continues to focus on improving profitability - both our customers' and our own - by helping customers generate new revenues, reduce capital expenses and cut operating expenses," said Rob Pullen, Tellabs president and chief executive officer. "During the first quarter, we gained new customers for our innovative growth products, including our dynamic optical networking and data products. Data products continue to be our fastest-growing product category: first-quarter data revenue grew 45% compared with the year-ago quarter. We are successfully transitioning to growth products while improving gross profit margins, generating cash and investing in the future."

For the first quarter of 2009, broadband segment revenue was US$178 million, transport segment revenue was US$130 million and services segment revenue was US$54 million.

Compared with the first quarter of 2009, Tellabs expects second-quarter revenue to be flat to up by a high-single-digit percentage.

Posted to the site on 28th April 2009