Tellabs reports 3Q loss due to restructuring

NAPERVILLE — Tellabs’ third-quarter 2011 revenue fell $116 million due to company restructuring and noncash accounting charge, the company reported.

Revenues for the period totaled $314 million, compared with $430 million during the same period last year. North American revenue declined to $151 million, and revenue outside North America rose to $163 million, the company reported in a statement.

“We’re disappointed by third-quarter revenue in North America,” said Rob Pullen, Tellabs president and chief executive officer. “Yet we’re encouraged by the continuing growth of our business outside North America, which generated more than half of Tellabs’ quarterly revenue for the first time.”

Tellabs recorded a net loss of $138 million or 38 cents per share in the third quarter of 2011, compared with net earnings of $57 million or 15 cents per share in the third quarter of 2010. The loss was primarily driven by a noncash goodwill impairment charge of $83 million, a noncash in-process R&D impairment charge of $20 million and previously announced restructuring charges of $20 million.

Tellabs’ gross profit margin was 40.8% in the third quarter of 2011, compared with 50.2% in the

year-ago quarter.

“Looking forward, we’re focusing on a next-generation product portfolio to fulfill our mobile Internet

strategy,” Pullen added. “We recently recognized our first revenue from the new Tellabs 8609, a low-cost,

high-density Ethernet mobile backhaul platform. And we announced the new Tellabs SmartCore® 9200

platform, which will help our customers succeed by making networks smarter, improving the user

experience and generating new revenue streams.”

For the third quarter, Tellabs’ broadband segment revenue was $170 million, down 15 percent from last year, transport segment revenue was $87 million, down 49 percent, and services segment revenue was $57

million, down 6 percent.