Tellabs narrows 4Q loss, but will cut 530 jobs

(AP)  NAPERVILLE, Ill. — Communications equipment maker Tellabs Inc. reported fourth-quarter results on Tuesday that were slightly better than analysts expected, but its shares fell more than 8 percent with the announcement of a $107 million restructuring charge that will hit mostly during the current quarter.

The company said it had a net loss of $5 million, or 1 cent per share, during the quarter that ended Dec. 31. That compared with a net loss of $11 million, or 3 cents per share, a year earlier. Revenue fell 23 percent to $317 million from $411 million.

The company said it will cut 530 jobs, starting Tuesday, on top of the 125 job cuts it announced in July. Including the planned hiring of 105 people in new positions, spokesman George Stenitzer said in an e-mail that Tellabs' total work force will drop from 3,250 to 2,700 during 2012, he said.

"In a climate of economic uncertainty, Tellabs needs to align expenses with revenue," CEO Rob Pullen said in a statement.

The company plans to stop development of its SmartCore 9100 LTE line of equipment, which enables high-speed mobile "WiMax" Internet connections. The company will continue to support its current SmartCore 9100 WiMax customers.

It will consolidate research and development in fewer locations, closing offices in California, Canada, India and Pakistan, Pullen said during a conference call Tuesday.

Excluding one-time charges, Tellabs earned $4 million, or a penny per share.

Analysts expected an adjusted net loss of 1 cent per share and revenue of $315.9 million, according to FactSet. In the same period of 2010, its adjusted income was $6 million, or 2 cents per share, Tellabs said.

For the full year, Tellabs reported a net loss of $188 million, or 52 cents per share, in contrast with net income of $155.6 million, or 41 cents per share, for 2010. Revenue for the year was $1.29 billion, down from $1.64 billion the year before.

The company said its adjusted loss for the year was $18 million, or 5 cents per share, compared with adjusted net income of $176 million, or 46 cents per share, in 2010.

Analysts had been expecting an adjusted net loss of 9 cents per share on revenue of $1.29 billion, according to FactSet.

The company's board of directors approved a dividend of 2 cents to be paid Feb. 24 to shareholders of record as of Feb. 10, Tellabs said.

Shares of Tellabs fell 34 cents, or 8.1 percent, to $3.86 by early afternoon.

Scientific American

• Tellabs narrows 4Q loss, but will cut 530 jobs