Tellabs reported Q4 2007 revenue of $469 million, up 3% from $455 million in the fourth quarter of 2006. For the year 2007, Tellabs revenue totaled $1.9 billion, down 6% from $2.0 billion in 2006. Tellabs earned $6 million or 1 cent per share in the fourth quarter of 2007 on a GAAP basis, down 78% from $29 million or 7 cents per share in the fourth quarter of 2006.
Tellabs also announced a plan to reduce operating expenses. Under this plan, together with the restructuring announced in September 2007, Tellabs expects to achieve $100 million in savings by the end of 2008. Reductions include $75 million from annual operating expenses and $25 million from overhead costs of products and services.
Included in the $100 million plan are future workforce reductions of approximately 225 employees, in addition to 125 employees who were affected by the September restructuring. Under this plan, Tellabs will take charges of $12 million to $14 million during 2008, including approximately $8 million in the first quarter of 2008.
“Last year, nearly half of Tellabs revenue came from new products added since 2003,” said Krish A. Prabhu, Tellabs president and chief executive officer. “Gross profit margins are trending up, and Tellabs’ plan will reduce annual costs and operating expenses by $100 million. Unfortunately, implementation of the plan will impact Tellabs’ workforce.”
Broadband — Fourth-quarter 2007 revenue from the broadband segment totaled $274 million, up 10% from $249 million in the fourth quarter of 2006. Full-year 2007 revenue from the broadband segment was $1,018 million, down 6% from $1,080 million in 2006. Within the broadband segment, for the fourth quarter of 2007:
- Data revenue was $40 million, up 29% from $31 million in the fourth quarter of 2006.
- Access revenue grew 12% to $154 million from $138 million in the fourth quarter of 2006.
- Managed access revenue of $80 million was flat with $80 million in the fourth quarter of 2006.
Transport — Fourth-quarter 2007 revenue from the transport segment totaled $136 million, down 14% from $159 million in the fourth quarter of 2006. Full-year 2007 revenue from the transport segment was $673 million, down 14% from $778 million in 2006.
Services — Fourth-quarter 2007 services revenue was $59 million, up 26% from $47 million in the fourth quarter of 2006. Full-year 2007 revenue from the services segment was $222 million, up 22% from $183 million in 2006.http://www.tellabs.com
