Tellabs reported Q2 revenue of $432 million, down 19% from $535 million in the second quarter of 2007. International revenue rose 20% to $145 million, up from $121 million in the year-ago quarter. Tellabs earned $39 million or 10 cents per share on a GAAP (U.S. generally accepted accounting principles) basis, including a one-time benefit of $35 million or 9 cents per share resulting from the favorable completion of IRS audits. In the second quarter of 2007, Tellabs earned $30 million or 7 cents per share on a GAAP basis.
Gross profit margins were 35%, better than expected. The company said improved gross profit margin improvements on the Tellabs 7100 system resulted from cost reductions, additional customers and a beneficial mix including more transponder cards.
“Three Tellabs products delivered record quarterly revenues in a tough market, and we’re encouraged that Tellabs’ innovations are gaining traction with customers worldwide,” said Rob Pullen, Tellabs president and chief executive officer. “As we continued to apply focus and discipline, our second-quarter gross profit margins outperformed our expectations.”
Some highlights:
- Broadband — Second-quarter 2008 revenue from the broadband segment totaled $231 million, down 6% from $246 million in the second quarter of 2007. Within the broadband segment:
Data (multiservice routers) revenue was $45 million, up 28% from $35 million in the year-ago quarter. Quarterly revenue from the new Tellabs 8600 managed edge system reached a new high.
Access revenue was $103 million, down 23% from $135 million in the year-ago quarter.
Managed access revenue was $83 million, up 8% from $77 million in the year-ago quarter. Quarterly revenue from the Tellabs 6300 managed access system reached a new high.
- Transport — Second-quarter 2008 transport revenue totaled $141 million, down 37% from $223 million in the year-ago quarter. Quarterly revenue from the Tellabs 7100 optical transport system reached a new high, excluding deferred revenue recognized in the year-ago quarter. During the second quarter of 2008, Tellabs recognized revenue from two Tellabs 7100 system customers outside the United States.
- Services — Second-quarter 2008 services revenue was $60 million, down 8% from $66 million in the year-ago quarter.
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