Blames “consolidation uncertainty”
Tellabs has said that its fourth quarter2006 revenue is expected to range from US$455 million to US$470 million. That represents a quarter on quarter reduction from the $523 million earnt in the third quarter 2006, as well as a year on year reduction from revenues of $521 million in 4Q 2005.
It also said, in a preliminary estimate, that GAAP EPS for the quarter would be in the 5-7 cent range. Third quarter GAAP earnings were 13 cents, and 20 cents per share in the fourth quarter 2005.
The company said that “preliminary estimates were driven by lower than expected revenue from some large North American customers, an unfavorable shift in product mix, revenue deferrals related to a new product launch, and a lower effective tax rate.”
“Uncertainty surrounding telecom industry consolidation led
to lower than expected revenue in North America during the fourth quarter,” said Krish A. Prabhu, Tellabs president and chief executive officer. “We expect the revenue impact to be temporary since, as 2007 begins, our customers continue to see growing user demand for bandwidth. Tellabs remains well-positioned to benefit from this.”