Tellabs Inc. Earnings: Loss Narrows and Beats Estimates

S&P 500 (NYSE:SPY) component Tellabs Inc. ‘s (NASDAQ:TLAB) fourth quarter loss narrowed, beating estimates. Tellabs designs and markets equipment to telecommunications service providers worldwide.

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Tellabs Earnings Cheat Sheet for the Fourth Quarter

Results: Loss narrowed to $4.9 million (loss of one cent per diluted share) from $10.9 million (loss of 2 cents per share) in the same quarter a year earlier.

Revenue: Fell 22.8% to $316.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: TLAB reported adjusted net income of one cent per share. By that measure, the company beat the mean analyst estimate of a loss of 2 cents per share. Analysts were expecting revenue of $316 million.

Quoting Management: “In a climate of economic uncertainty, Tellabs needs to align expenses with revenue,” said Rob Pullen, Tellabs CEO and president. “Unfortunately, our restructuring will affect about 530 people. We will reduce expense and stop new development work on the Tellabs SmartCore 9100 LTE product, while continuing to support Tellabs SmartCore 9100 WiMax customers. “We’ll address customers’ needs through our next-generation portfolio of products and services for the smart mobile Internet, including Tellabs Mobile Backhaul Solution, Tellabs Packet Optical Solution and professional services such as Tellabs Insight Analytics Services.”

Key Stats:

The company beat estimates last quarter after being in line with expectations in the third quarter with a loss of one cent per share.

Looking Forward: Analysts seem more positive about the company’s results for the next quarter than a month ago. The average estimate for the first quarter of the next fiscal year has moved from a loss of 3 cents a share to a loss of 2 cents over the last thirty days. The average estimate hasn’t changed from 11 cents per share for the fiscal year.

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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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com