Thursday, January 4, 2007

Tellabs Trims Q4 Estimates Citing Spending Delays from RBOCs

Citing delays attributed to uncertainty surrounding telecom industry consolidation, Tellabs trimmed its preliminary revenue estimate for Q4 2006, saying it now expects revenue to range from $455 million to $470 million. Fourth-quarter GAAP earnings per share, assuming dilution, are expected to range from 5 cents to 7 cents.

Tellabs said these preliminary estimates were driven by lower than expected revenue from some large North American customers, an unfavorable shift in product mix, revenue deferrals related to a new product launch, and a lower effective tax rate.

"Uncertainty surrounding telecom industry consolidation led to lower than
expected revenue in North America during the fourth quarter," said Krish A. Prabhu, Tellabs president and chief executive officer. "We expect the revenue impact to be temporary since, as 2007 begins, our customers continue to see growing user demand for bandwidth. Tellabs remains well-positioned to benefit from this."