Tellabs 4Q results, outlook disappoints

NAPERVILLE — Telecommunications equipment maker Tellabs Inc. on Tuesday reported a fourth-quarter loss as operating expenses rose and overall costs increased. It also forecast revenue for the first quarter of 2011 that was well below analysts' forecasts.

Its shares fell $1.41, or 20 percent, to $5.63 in morning trading.

The company reported a net loss of $10.9 million, or 3 cents per share, compared with net income of $62.1 million, or 16 cents per share, a year ago. Revenue rose 5.4 percent to $410.5 million from $389.3 million.

During the quarter, the cost of revenue rose 20 percent to $254.7 million while operating expenses rose 15 percent to $162.5 million.

Excluding charges, the company said it earned 2 cents per share. Analysts polled by Factset expected profit of 8 cents per share on $418.4 million in revenue.

For the full year, the company reported net income of $155.6 million, or 41 cents per share, up from $113.6 million, or 29 cents per share, in 2009. Revenue rose to $1.64 billion from $1.53 billion.

Looking ahead, the company expects revenue between $315 million and $335 million for the first quarter. Analysts had forecast revenue of about $402.4 million.