Tellabs Quarterly Profits Down by 60%

Backhaul and networking equipment vendor, Tellabs has reported a 60% drop in second-quarter profits of $16 million compared with $39 million a year ago. Revenues dropped by 11% to $385 million, compared with $432 million in the second quarter of 2008.

GAAP gross profit margin was 43.5% in the second quarter of 2009, compared with 34.7% in the year-ago quarter. The company generated $64 million in cash from operations and added $58 million to its cash, cash equivalents and marketable securities, which rose to more than $1.2 billion.

"Tellabs' focus on innovative growth products is helping our customers and our company succeed, as growth products generated more than half of our second-quarter revenue," said Rob Pullen, Tellabs president and chief executive officer. "We continue to achieve solid gross profit margins, and our business appears to be stabilizing as customers placed the strongest orders in more than a year. But it's too soon to predict a recovery."

For the second quarter of 2009, Broadband segment revenue was $210 million, Transport segment revenue was $119 million and Services segment revenue was $56 million.

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

Posted to the site on 27th July 2009