Tellabs reports 3Q09 revenue of $389M
OCTOBER 27, 2009 -- Gross profit margins rise to 41.7% as operations generate $66 million in cash.
OCTOBER 27, 2009 -- Tellabs' third-quarter 2009 revenue totaled $389 million, compared with $424 million in the third quarter of 2008. Almost half of overall revenue came from growth products, including the Tellabs 6300, 7100, 7300, 8600, and 8800 systems and professional services.
Tellabs earned $29 million or 7 cents per share on a GAAP (U.S. generally accepted accounting principles) basis, compared with a loss of $999 million or $2.51 per share in the year-ago quarter, which included a non-cash goodwill charge of $988 million.
On a non-GAAP basis, Tellabs earned $28 million or 7 cents per share, up 51% from $19 million or 5 cents per share in the year-ago quarter. The current quarter's non-GAAP results exclude pretax charges of $11 million, which includes $4.5 million or 0.8 cents per share for equity-based compensation.
GAAP gross profit margin was 41.7% in 3Q09, compared with 38.2% in the year-ago quarter. The company generated $66 million in cash from operations and added $12 million to its cash, cash equivalents, and marketable securities, which rose to more than $1.25 billion. During the quarter, Tellabs repurchased approximately 9.5 million shares at a cost of $62 million under previously announced share repurchase programs.
"As we innovate to help our customers and company succeed, Tellabs continues to increase gross profit margins and generate cash," says Rob Pullen, Tellabs president and chief executive officer. "Tellabs' recently announced acquisition of WiChorus will bring customers breakthrough technology for the mobile Internet, logically extend our mobile business into an adjacent high-growth market, and help ensure Tellabs' future growth."
For 3Q09, broadband segment revenue was $206 million, transport segment revenue was $128 million, and services segment revenue was $55 million.
The following statements are based on current expectations and involve risks and uncertainties, some of which are set forth below. Compared with 3Q09, Tellabs expects 4Q09 revenue to be flat, plus or minus 3%. Non-GAAP gross margin is expected to be 43%, plus or minus one or two points, depending on product mix. Non-GAAP operating expense is expected to be flat to slightly down. Non-GAAP gross margin excludes about $1 million, and non-GAAP operating expense excludes about $4 million, in equity-based compensation expense.
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