Tellabs Announces First-Quarter 2011 Results
Company posts GAAP net loss of $24 million or 7 cents per share
Naperville, Ill. - Tellabs' first-quarter 2011 revenue totaled $322 million, down 15% from $379 million in the first quarter of 2010.
On a GAAP basis, Tellabs recorded a net loss of $24 million or 7 cents per share in the first quarter of 2011, compared with net earnings of $46 million or 12 cents per share in the first quarter of 2010.
In the first quarter of 2011, Tellabs had a non-GAAP net loss of 3 cents per share, compared with net earnings of 11 cents per share in the year-ago quarter. Non-GAAP net loss was $11 million in the first quarter of 2011, compared with net earnings of $44 million in the year-ago quarter. Non-GAAP results exclude $7.7 million pretax or 1.4 cents after-tax per share in equity-based compensation expense.
To pursue the long-term growth opportunity of the mobile Internet, Tellabs increased its research and development (R&D) investment by 16% year over year to $80 million, or 25% of first-quarter revenue.
"While international revenue grew 40% from a year ago, lower revenue in North America drove Tellabs' first-quarter results," said Rob Pullen, Tellabs president and chief executive officer. "Going forward, we will continue to invest in the smart mobile Internet through increased R&D spending to position Tellabs for long-term growth."
For the first quarter of 2011, Broadband segment revenue was $173 million, Transport segment revenue was $99 million and Services segment revenue was $50 million.
Second-Quarter 2011 Guidance - The following statements are forward-looking statements that are based on current expectations and involve risks and uncertainties, some of which are set forth below. We expect second-quarter 2011 revenue to be up in a range from $325 million to $345 million. We expect non-GAAP gross margin to be flat with 1Q11, plus or minus one or two points, depending on product and customer mix. We expect second-quarter non-GAAP operating expense to be down slightly in the low $140 millions.
Tellabs believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to the company's financial results. More detailed information, including year-over-year segment comparisons, non-GAAP reconciliation tables and the reasons management believes non-GAAP measures provide useful information to investors can be found in the Results of Operations section of this news release.
Simultaneous Webcast and Teleconference Replay - Tellabs will host an investor teleconference at 7:30 a.m. Central Standard Time today to discuss its first-quarter results and provide its outlook for the second quarter of 2011. Internet users can hear a simultaneous webcast of the teleconference at tellabs.com; click on the webcast icon. A taped replay of the call will be available beginning at approximately 10:30 a.m. Central Standard Time today, until 10:30 p.m. Central Standard Time on Thursday, April 28, at 800-642-1687. (Outside the United States, call 706-645-9291.) When prompted, enter the Tellabs conference ID number: 57860364. A podcast of the call will be available at www.tellabs.com/news/feeds/ later today.
About Tellabs - Tellabs helps customers succeed through innovation. That's why 43 of the top 50 global telecom service providers choose our mobile, optical and business solutions. We help telecom service providers, independent operating companies, MSO/cable TV companies, enterprises and government agencies get ahead by adding revenue, reducing expenses and optimizing networks. With wireless and wireline networks in more than 90 countries, we enrich people's lives by innovating the way the world connects(TM). Tellabs (Nasdaq: TLAB) is part of the NASDAQ Global Select Market, Ocean Tomo 300® Patent Index, the S&P 500 and several corporate responsibility indexes including FTSE4Good and eight FTSE KLD indexes. www.tellabs.com
