Tellabs reports Q4

Fiber Optics Weekly Update, Feb 7, 2003

Tellabs reported fourth quarter earnings with revenues of $313 million, up 9 percent sequentially. In the quarter, all product groups delivered higher sequential sales, with a record 37 percent of sales coming from international customers. Globally, new products accounted for 14 percent of sales, up from 9 percent in the previous quarter. Tellabs maintained its leadership in North American bandwidth management market share in the third quarter, according to a report issued last month by industry analyst firm RHK. Including a non-cash charge of approximately $87.7 million to establish a valuation allowance against U.S. deferred taxes and the pre-tax reversal of $18.5 million in previously announced but unused restructuring charges, Tellabs recorded a net loss of $84.5 million or 21 cents per share for the quarter.

Excluding these charges, Tellabs recorded a pro forma net loss of $10.2 million or 2 cents per share for the quarter. In the quarter, Tellabs held tight control on its operating expenses, which were $152 million, flat with third-quarter 2002. The company generated positive net cash flow of $12 million and ended the year with more than $1 billion in cash and marketable securities. Fourth-quarter revenues were modestly boosted by carriers' traditional seasonal spending and the company expects to see more than a typical sequential decline in first-quarter 2003 revenues, based on customers' spending patterns. Full-year 2002 sales totaled $1.3 billion. Including previously announced restructuring and other onetime charges, Tellabs recorded a net loss of $313 million for the year, or 76 cents per share. Excluding these charges, Tellabs recorded a proforma net loss of $16.5 million for the year or 4 cents per share.