Tellabs reports $1B
loss, cutting 280 jobs
By Sandra Guy, Business Reporter
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
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.