Tellabs to cut 530 jobs as revenue dips 21 percent in 2011 to $1.3 billion


By
Telecom Lead Team:
Tellabs has posted a fourth quarter 2011 revenue of $317
million, compared with $410 million in the year-ago quarter. Revenue
of Tellabs in 2011 was $1.29 billion compared with $1.64 billion in
2010, registering 21 percent dip.

 

Tellabs
posted a net loss of $5 million or 1 cent per share in Q4 2011, compared with a
net loss of $11 million or 3 cents per share in the fourth quarter of 2010.


Tellabs
recorded net earnings of $4 million or 1 cent per share in the fourth quarter
of 2011, compared with net earnings of $6 million or 2 cents per share in the
year-ago quarter.


Tellabs
will restructure its business and recognize a pretax charge, substantially all
of which is expected to be incurred in the first quarter of 2012, currently
estimated at $107 million.


The
23 percent decrease in revenue in Q4 2011 is forcing the company to cut 530
jobs shortly.


In
a climate of economic uncertainty, Tellabs needs to align expenses with
revenue. Unfortunately, our restructuring will affect about 530 people. We will
reduce expense and stop new development work on the Tellabs SmartCore 9100 LTE
product, while continuing to support Tellabs SmartCore 9100 WiMax customers,”
said Rob Pullen, Tellabs
CEO and President.


We’ll
address customers’ needs through our next-generation portfolio of products and
services for the smart mobile Internet, including Tellabs Mobile Backhaul
Solution, Tellabs Packet Optical Solution and professional services such as
Tellabs Insight Analytics Services,” Pullen added.


Tellabs’
gross profit margin was 42.5 percent in the fourth quarter of 2011, compared
with 38.0 percent in the year-ago quarter.


For
the fourth quarter of 2011, Broadband segment revenue was $166 million,
transport segment revenue was $92 million and Services segment revenue was $59
million.


In
2011 Tellabs lost $188 million or 52 cents per share, down from net earnings of
$156 million or 41 cents per share in 2010.


For
2011, Broadband segment revenue was $671 million, Transport segment revenue was
$392 million and Services segment revenue was $223 million.


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