Tellabs Inc. Earnings Cheat Sheet: Swung to a Loss but Beat Estimates

S&P 500 (NYSE:SPY) component Tellabs, Inc. (NASDAQ:TLAB) dropped to a third quarter loss, but results topped expectations. Tellabs designs and markets equipment to telecommunications service providers worldwide.

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Tellabs Earnings Cheat Sheet for the Third Quarter

Results: Reported a loss of $138.2 million (38 cents per diluted share) in the quarter. The communication equipment company had net income of $56.5 million or 15 cents per share in the year earlier quarter.

Revenue: Fell 26.9% to $313.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: TLAB reported adjusted net loss of one cent per share. By that measure, the company beat the mean analyst estimate of a loss of 2 cents per share. It fell short of the average revenue estimate of $334.5 million.

Quoting Management: “We’re disappointed by third-quarter revenue in North America,” said Rob Pullen, Tellabs president and chief executive officer. “Yet we’re encouraged by the continuing growth of our business outside North America, which generated more than half of Tellabs’ quarterly revenue for the first time.”

Key Stats:

Revenue has fallen for the past three quarters. In the second quarter, revenue declined 20.9% to $334.2 million while the figure fell 15.1% in the first quarter from the year earlier.

The company beat estimates last quarter after being in line with expectations in the second quarter with a loss of 3 cents per share.

Down from a loss of 7 cents per share ninety days ago, the average estimate for the fiscal year is now a loss of 9 cents.

Competitors to Watch: ADTRAN, Inc. (NASDAQ:ADTN), Ciena Corporation (NASDAQ:CIEN), Sycamore Networks, Inc. (NASDAQ:SCMR), Ditech Networks Inc. (NASDAQ:DITC), Calix, Inc. (NYSE:CALX), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Juniper Networks, Inc. (NYSE:JNPR), Cisco Systems, Inc. (NASDAQ:CSCO), Sonus Networks, Inc. (NASDAQ:SONS), and Alcatel-Lucent (NYSE:ALU).

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(Source: Xignite Financials)