Tellabs Q2 revenue grows 30% to $304 M

By siliconindia   |   Thursday, 29 July 2004, 07:00 Hrs
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BANGALORE: Tellabs International, (Nasdaq-TLAB) the global Telecommunications Equipment manufacturer and one of the world’s leading communications service providers of converged networks, today announced the second-quarter 2004 revenue of $304 million, up 30% from $234 million in the second quarter of 2003. Tellabs' second-quarter net earnings totaled $50 million.

“Continuing strong demand for our products, combined with the benefits of restructuring and expense control, are driving growth and profitability at Tellabs,” said Krish A. Prabhu, Tellabs president and chief executive officer. “We are making solid progress in new product development and customer fulfillment, which will strengthen Tellabs’ position as a strategic, global supplier leading the industry shift to broadband.”

Transport—Revenue from transport systems, the company’s core products, totaled $161 million, up 74% from $93 million in the second quarter of 2003, primarily driven by strong wireless demand.

Managed Access—Revenue from managed access systems was $76 million, down 10% from $85 million in the second quarter of 2003, primarily a result of lower sales of circuit-based cable telephony.

Broadband Data—Revenue of broadband data products was $2 million. The company recently introduced the Tellabs® 8600 managed edge system, which shipped to its first customer this month.

Voice Quality Enhancement—Revenue from voice-quality enhancement and other systems amounted to $24 million, up 36% from $18 million in the second quarter of 2003.

Services and Solutions—Services and solutions revenue was $41 million, up 4% from $39 million in the second quarter of 2003.

On a GAAP basis, operating expenses were $120 million in the quarter, including a restructuring credit of $2 million.

Tellabs’ proposed acquisition of AFC (NASDAQ: AFCI) continues to progress, as the Federal Trade Commission has granted early termination of its Hart-Scott-Rodino review. On June 23, 2004, Tellabs filed a Registration Statement on Form S-4 with the Securities and Exchange Commission (SEC), which is available on the SEC's web site. This document is currently under review by the SEC. The SEC may have comments and suggested revisions to the document before it is finalized. When the comment and response process has concluded, the finalized joint proxy statement/prospectus contained in the Form S-4 will be sent to both companies' stockholders in connection with the stockholder meetings that will be held to approve the transaction. It is anticipated that the closing would occur promptly after these meetings, assuming both companies' stockholders approve the merger. The companies currently anticipate closing the merger before the end of October 2004.

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