Tellabs warns of disappointing fourth quarter
Blames "consolidation uncertainty"
Tellabs has said that its fourth quarter2006 revenue is expected to range from US$455 million to US$470 million. That represents a quarter on quarter reduction from the $523 million earnt in the third quarter 2006, as well as a year on year reduction from revenues of $521 million in 4Q 2005.
It also said, in a preliminary estimate, that GAAP EPS for the quarter would be in the 5-7 cent range. Third quarter GAAP earnings were 13 cents, and 20 cents per share in the fourth quarter 2005.
The company said that "preliminary estimates were driven by lower than expected revenue from some large North American customers, an unfavorable shift in product mix, revenue deferrals related to a new product launch, and a lower effective tax rate."
"Uncertainty surrounding telecom industry consolidation led
to lower than expected revenue in North America during the fourth quarter," said Krish A. Prabhu, Tellabs president and chief executive officer. "We expect the revenue impact to be temporary since, as 2007 begins, our customers continue to see growing user demand for bandwidth. Tellabs remains well-positioned to benefit from this."
Share this article with others
Post to del.icio.us
Printed from http://www.mobileeurope.co.uk/news_analysis/112428/Tellabs_warns_of_disappointing_fourth_quarter.html
Comment on this article
Skip to comments
We encourage users to analyse, comment on and even challenge Mobile Europe's articles, including the one above - 'Tellabs warns of disappointing fourth quarter'
User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site.
Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. We will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site.