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Tellabs reports $1B loss, cutting 280 jobs
By Sandra Guy, Business Reporter
Chicago Sun Times
Wednesday, October 22, 2008

Tellabs on Tuesday reported a nearly $1 billion loss, mostly to write down asset value, and said it will lay off 280 employees due to weak sales.

The writedown has no effect on the company's $1.2 billion in cash or its other assets that could quickly be converted into cash.

The Naperville-based company, which sells network equipment to phone companies, said its third-quarter loss totaled $999 million, or $2.51 a share, versus a profit of $3.6 million, or 1 cent a share, in the year-ago period.  Excluding the goodwill impairment and restructuring charges, Tellabs would have earned $19 million, or 5 cents a share, compared with $14 million, or 3 cents, in the year-ago quarter.

Revenue fell 7 percent in the third quarter, to $424 million.

Most of the 280 employees to be let go in Tellabs' access business work in Dallas, but some employees will be affected in Naperville, a Tellabs spokesman said.  No more specific numbers were available.

Employees will be notified Tuesday and Wednesday, and will leave by year end.

Tellabs said its fourth-quarter revenue will fall below Wall Street's forecasts, with revenue expected to be flat to down, and will require more cost-cutting.,CST-FIN-tellabs20w-w.article