Tellabs Inc. (TLAB) swung to a first-quarter loss as revenue
declined sharply in North America and margins plunged.
The company also forecast current-quarter revenue of $325
million to $345 million. Analysts surveyed by Thomson Reuters
expect $357 million.
The telecommunications-equipment maker's bottom line has been
stung recently by plunging margins and charges, though before the
most recent quarter, it had seen stronger revenue, helped by its
broadband segment.
Tellabs reported a loss of $24.1 million, or 7 cents a share,
compared with a year-earlier profit of $45.6 million, or 12 cents.
Excluding items such as amortization of intangible assets and
restructuring charges, the loss was 3 cents compared with an
11-cent profit a year earlier. Analysts polled by Thomson Reuters
had most recently forecast a loss of 3 cents.
Revenue dropped 15% to $322.4 million. The company had forecast
revenue between $315 million and $335 million.
Gross margin plunged to 37.9% from 50.6%.
Revenue from customers in North America--which makes up more
than half of the company's top line--dropped 36% to $175.1 million,
while revenue outside North America jumped 40% to $147.3
million.
Shares closed at $5.39 on Monday and were inactive premarket.
The stock has fallen 34% the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;