Tellabs has said that its fourth quarter 2006 revenues were US$455 million, right at the bottom end of predictions it made prior to the announcement.
That represents a quarter on quarter reduction from the $523 million earnt in the third quarter 2006, as well as a 13% year on year reduction from revenues of $521 million in 4Q 2005.
Tellabs also said, in its preliminary estimate, that GAAP EPS for the quarter would be in the 5-7 cent range, and its results showed 7 cent earnings. 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 ceo. He also forecast improvements in 2007.