Tellabs Reports Fourth-Quarter Revenue
January 27, 2009
Tellabs, a company that advances telecommunications networks to meet the evolving needs of users, has announced today its fourth-quarter 2008 revenue of $408 million, down 13 percent from $469 million in the fourth quarter of 2007. For 2008, Tellabs revenue totaled $1.7 billion, down ten percent from $1.9 billion in 2007.
“Customers continued to choose Tellabs this quarter. BT placed orders for the Tellabs 8600 system, marking our 96th customer for this product. A new cable TV multiple system operator (MSO) customer selected Tellabs 7100 system for optical networking,” said Rob Pullen, Tellabs president and chief executive officer.
“In these tough times, Tellabs is focused on improving profitability – both for our customers and for our company – and investing for the future to emerge stronger after the downturn. We help customers succeed by enabling new service revenue, reducing capital expenses and cutting operating expenses,” Pullen continued.
Tellabs reported the following:
Broadband — Fourth-quarter 2008 revenue from the broadband segment totaled $227 million, down 17 percent from $274 million in the fourth quarter of 2007. Full-year 2008 revenue from the broadband segment was $920 million, down ten percent from $1,018 million in 2007. Within the broadband segment, for the fourth quarter of 2008:
• Data revenue was $60 million, up 49 percent from $40 million in the year-ago quarter.
• Access revenue was $98 million, down 36 percent from $154 million in the year-ago quarter.
• Managed access revenue was $69 million, down 14 percent from $80 million in the year-ago quarter.
Transport — Fourth-quarter 2008 revenue from the transport segment totaled $124 million, down nine percent from $136 million in the fourth quarter of 2007. Full-year 2008 revenue from the transport segment was $580 million, down 14 percent from $673 million in 2007.
Services — Fourth-quarter 2008 services revenue was $57 million, down three percent from $59 million in the fourth quarter of 2007. Full-year 2008 revenue from the services segment was $229 million, up three percent from $222 million in 2007.
Share Repurchase – Under previously announced share repurchase plans, Tellabs repurchased 2.7 million shares for $10.3 million during the fourth quarter of 2008.
For its first-quarter in 2009, Tellabs, based on current expectations, expects its current market conditions to continue.
Company officials said in a statement released today, “We expect first-quarter 2009 revenue to be in the $345 million to $375 million range. First-quarter 2009 non-GAAP gross margin is expected to be flat, plus or minus a point or two, depending on product mix, compared with the fourth quarter of 2008; non-GAAP gross margin excludes about $1 million in equity-based compensation expense.”
“First-quarter 2009 non-GAAP operating expense is expected to be flat to slightly down from the fourth quarter of 2008. Non-GAAP operating expense excludes about $10 million in equity-based compensation expense and amortization of purchased intangibles,” officials concluded.
Tellabs, a part of the NASDAQ Global Select Market, Ocean Tomo 300 Patent Index, the S&P 500 and several corporate responsibility indexes including FTSE4Good and eight KLD indexes, provides solutions enabling service providers to deliver quality voice, video and data services over wireline and wireless networks around the world.