Monday, January 25, 2010

Tellabs Posts Q4 Revenue of $389 Million, Profitability Rises, First Dividend

Tellabs reported Q4 2009 revenue of $389 million, compared with $408 million in the fourth quarter of 2008. Tellabs 2009 annual revenue was $1.5 billion, compared with $1.7 billion in 2008.

On a GAAP basis, Tellabs earned 16 cents per share in the fourth quarter of 2009, up from 3 cents per
share in the fourth quarter of 2008. Fourth-quarter 2009 GAAP earnings were $62 million, compared with
$13 million in the year-ago quarter. Fourth-quarter 2009 GAAP earnings include a tax benefit of $23.4
million or 6 cents per share.

"Tellabs' fourth-quarter operating margin of 9.0% was the highest since 2006," said Rob Pullen, Tellabs
president and chief executive officer. "To return capital to shareholders, today we're announcing the
company's first cash dividend. It's based on our confidence that Tellabs will continue to generate ample
cash from operations to invest in the growth of our business, repurchase shares and pay dividends."

Tellabs also announced a restructuring, in order to shift more investment from TDM
products to Ethernet and IP products; to improve Ethernet, IP and mobile packet core
skill sets worldwide; to move its supply chain closer to suppliers; and to reduce general and
administrative expenses. Although the company plans to reduce its workforce by about 200 people over
the next five quarters, Tellabs expects overall headcount to rise during 2010.

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