Citing uncertainty from its large North American carrier customers, Tellabs reported fourth-quarter 2006 revenue of $455 million, down 13% from $521 million in the fourth quarter of 2005. For the year 2006, Tellabs revenue totaled $2,041 million, up 8% from $1,883 million in 2005. Tellabs earned $29 million or 7 cents per share in the fourth quarter of 2006 on a GAAP basis, down 68% from $92 million or 20 cents per share in the fourth quarter of 2005.
Tellabs expects first- quarter 2007 revenue to be flat to slightly down from the fourth quarter of 2006, in a range from $445 million to $455 million.
“While our fourth-quarter results reflected temporary uncertainty around carrier consolidation in North America, we are hopeful that this will clear soon,” said Krish A. Prabhu, Tellabs president and chief executive officer. “As 2007 begins, our customers continue to see growing user demand for bandwidth, and Tellabs remains well-positioned to benefit from this.”
Some highlights:
- Broadband – Fourth-quarter 2006 revenue from the broadband segment totaled $249 million, down 17% from $302 million in Q4 2005. Within the broadband segment, access revenue fell 23% to $138 million from $180 million in the fourth quarter of 2005. Managed access revenue fell 12% to $80 million from $91 million a year ago. Data revenue was $31 million, flat with $31 million in the fourth quarter of 2005. Full-year 2006 revenue from the broadband segment was $1,080 million, up 4% from $1,042 million in 2005.
- Transport – Fourth-quarter 2006 revenue from the transport segment totaled $159 million, down 10% from $175 million in the fourth quarter of 2005. Full- year 2006 revenue from the transport segment was $778 million, up 15% from $674 million in 2005.
- Services – Fourth-quarter 2006 services revenue was $47 million, up 7% from $44 million in the fourth quarter of 2005. Full-year 2006 revenue from the services segment was $183 million, up 9% from $167 million in 2005.
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