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Tellabs Inc. Reports Operating Results (10-Q)

May 06, 2011 | About:

10qk

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Tellabs Inc. (TLAB) filed Quarterly Report for the period ended 2011-04-01.

Tellabs Inc. has a market cap of $1.7 billion; its shares were traded at around $4.68 with a P/E ratio of 15.6 and P/S ratio of 1. The dividend yield of Tellabs Inc. stocks is 1.7%.

Highlight of Business Operations:

Net loss for the first quarter of 2011 was $24.1 million or $0.07 per share (basic and diluted), compared with net earnings of $45.6 million or $0.12 per share (basic and diluted) in the year-ago quarter.

For the first quarter of 2011, we reported a tax benefit of $5.8 million, compared with a benefit of $3.6 million for the first quarter of 2010. In the first quarter of 2011, a benefit of $3.4 million was recorded from the reversal of tax accruals that are no longer required due to an expiration of a statute of limitations, compared to a similar $13.3 million benefit recorded in the first quarter of 2010. Excluding these reversals, the tax benefit in the first quarter of 2011 was due to losses from domestic operations, partially offset by a valuation allowance on domestic deferred tax assets.

Data product revenue was $106.5 million in the first quarter of 2011, compared with $130.7 million in the year-ago quarter. Increased revenue from customers in the Europe, Middle East and Africa regions was offset by lower revenue in other geographies. Access revenue was $40.1 million in the first quarter of 2011, up 33.2% from $30.1 million in the year-ago quarter, driven by increased revenue from access systems and single-family optical network terminal (ONT) units. Managed access revenue was $26.4 million in the first quarter of 2011, compared with $30.3 million in the year-ago quarter. Most of the decline came from lower revenue from managed access systems.

Total Broadband revenue for the first quarter of 2011 was $173.0 million, compared with $227.0 million in the prior quarter. Within the Broadband segment, data revenue was $106.5 million, compared with $119.9 million in the prior quarter. Higher revenue for data products from customers outside North America was offset by lower revenue from data customers in North America. Access revenue was $40.1 million, compared with $69.6 million in the prior quarter, driven primarily by lower revenue from single-family ONT units. Managed access revenue was $26.4 million, compared with $37.5 million in the prior quarter, on lower revenue from SDH transport systems and managed access systems. Broadband segment profit for the first quarter of 2011 was $19.7 million, compared with $33.8 million in the prior quarter. The decline in segment profit was driven by lower overall segment revenue, partially offset by a $16.5 million charge for excess purchase commitments in the prior quarter.

Growth portfolio revenue for the first quarter of 2011 was $194.4 million (or 60% of total revenue), compared with $231.4 million (or 56% of total revenue) in the prior quarter. Given the level of research and development expenses in early lifecycle products, this portfolio is not presently profitable. In the first quarter of 2011, core portfolio revenue was $128.0 million (or 40% of total revenue), compared with $179.1 million (or 44% of total revenue) in the prior quarter.

Non-GAAP net loss in the first quarter of 2011, driven primarily by the overall decrease in revenue and gross margin, was $10.9 million or $0.03 per share (basic and diluted), compared with net earnings of $5.7 million or $0.02 per share (basic and diluted) in the prior quarter.

Read the The complete Report

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10qk
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