Wednesday, October 24, 2012

Tellabs Announces Q3 Revenue of $264 million, 200 Job Cuts

Tellabs posted Q3 revenue of $264 million, compared with $330 million in the year-ago quarter, and a net loss of $4 million or 1 cent per share, compared with a net loss of $130 million or 36 cents per share in the third quarter of 2011. Q3 results included impairment charges for goodwill and other intangible assets of $102.7 million.

For the third quarter of 2012, Optical segment revenue was $108 million, Data segment revenue was $66 million, Access segment revenue was $42 million and Services segment revenue was $48 million.

Tellabs also announced plans to eliminate approximately 200 jobs over the next year.  The company expects to take a restructuring charge of about $11 million in the fourth quarter of
2012, consisting principally of severance and related costs.

“As we transform Tellabs’ business model and create a path to sustained future growth and profitability,
we must continue to lower costs and expenses,” said Dan Kelly, Tellabs acting CEO and president. “At
the same time, we are increasing R&D investments in our next-generation products to help our customers succeed with Tellabs optical, data and access solutions.”