Tellabs Inc.'s (TLAB) second-quarter earnings more than
quadrupled, and adjusted results topped analysts' forecasts, as the
company benefited from higher revenue and margins.
The telecommunications-equipment maker also forecast
current-quarter revenue of $425 million to $435 million. Analysts
surveyed by Thomson Reuters expected $416 million on average.
Tellabs has seen its results improve of late, helped by rising
revenue from both its products and services. The company has
focused on growth products and innovating in growth markets, such
as mobile Internet. Growth products make up more than half of
Tellabs's revenue.
It reported a profit of $64.1 million, or 16 cents a share, up
from $15.7 million, or 4 cents, a year earlier. Excluding items
such as stock-compensation expenses, earnings rose to 17 cents from
8 cents. Analysts most recently forecast 13 cents.
Revenue jumped 9.7% to $422.7 million from a year earlier and
from $379.7 million in the prior quarter. In April, the company had
forecast 10% to 12% sequential growth.
Gross margin rose to 53.5% from 43.5%.
Revenue in the company's broadband segment, its biggest,
increased 8.8% while profit jumped 50%. Its transport segment saw
revenue rise 12% while profit nearly doubled.
Shares closed at $7.79 Monday and were inactive premarket. The
stock has risen 37% so far this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com