Tellabs earnings grow as revenue rises 10 percent

Naperville-based Tellabs' second-quarter 2010 revenue totaled $423 million, up 10% from $385 million in the second quarter of 2009.

On a GAAP basis, Tellabs earned 17 cents per basic share and 16 cents per diluted share in the second quarter of 2010, up from 4 cents per share (basic and diluted) in the year-ago quarter. Second-quarter

2010 GAAP net earnings were $64 million, compared with $16 million in the year-ago quarter.

On a non-GAAP basis, Tellabs earned 17 cents per share (basic and diluted) in the second quarter of

2010, compared with 8 cents per share (basic and diluted) in the year-ago quarter. Non-GAAP net earnings were $67 million in the second quarter of 2010, compared with $33 million in the second quarter

of 2009. Non-GAAP results for the second quarter of 2010 exclude pretax charges of $14.4 million, which include $7.5 million or 1.3 cents per share in equity-based compensation expense.

Tellabs' GAAP gross profit margin was 53.5% in the second quarter of 2010, compared with 43.5% in the year-ago quarter. The company generated $110 million in cash from operations during the quarter.

"Tellabs is achieving profitable revenue growth as our innovations help our customers succeed in growth markets such as mobile Internet," said Rob Pullen, Tellabs president and chief executive officer. "In the second quarter, our growth products with IP and Ethernet technologies generated 58% of our revenue."