Monday, July 25, 2011

Tellabs Post Q2 Sales Decline, Announces Job Cuts

Tellabs reported Q2 revenue of $334 million, down 21% from $423 million in the year-ago quarter. North America revenue fell 46%, while international revenue rose 70%, compared with the year-ago quarter.

On a GAAP basis, Tellabs recorded a net loss of $20 million or 6 cents per share (basic and diluted) in
the second quarter of 2011, compared with net earnings of $64 million or 17 cents per basic share and 16
cents per diluted share in the second quarter of 2010.

Broadband segment revenue was $163 million, down 29% from the yearago quarter. Transport segment revenue was $114 million, down 14%. Services segment revenue was $57 million, down 6%.

"While we're never satisfied with a loss, we're making progress in improving Tellabs' performance. In the
second quarter, international revenue grew 70% year-over-year, growth products generated a record 61%
of revenue, and the Tellabs 7100 system had its best quarter ever. Compared with the first quarter, we
reduced operating expenses and improved cash flow from operations," said Rob Pullen, Tellabs president
and chief executive officer. "Going forward, we will cut $50 million from expenses and costs over the next
year, better aligning our expenses with revenue expectations."

The job cuts affect about 330 or 10% of Tellabs employees.