Tellabs' Q2 revenue declines to $212M, but meets guidance

Tellabs (Nasdaq: TLAB) reported that second-quarter revenue declined year-over-year to $212 million, down from $288 million, but its results were in line with its guidance for the quarter.

The vendor said it widened its losses to $8 million or 2 cents a share from $5 million or 1 cent a share a year earlier.

Over the past few quarters, Tellabs has been going through a series of transitions, including the exiting of two CFOs and cutting costs via layoffs and scrapping product lines such as 9200 platform.

"We made good progress in the second quarter, compared with the first quarter, as revenue and gross profit margins improved," said Dan Kelly, Tellabs CEO and president, in the earnings release.

Here's a breakdown of the company's four key segment metrics:

Optical: Optical segment revenue was $112.7 million, down year-over-year from $122.4 million in Q2 2012. A rise in 7100 optical transport system revenue was more than offset by lower revenue from its 6300 managed transport systems and 5000 digital cross-connect systems. Optical segment profit was $25.4 million, down from $29 million in the same period a year ago.

Data:  In the data segment revenue dropped to $35.8 million from $77.7 million in Q2 2012 due to lower revenue from the Tellabs' 8600 and 8800 smart routers and its 8100 managed access systems. Likewise, the data segment loss, driven primarily by the lower revenue level and lower gross margins, was $2.5 million, compared with segment profit of $5.4 million.

Access: Driven by lower revenue from its 1600 single-family Optical Network Terminals (ONTs), access segment revenue was $19.4 million, down from $37.3 million. Meanwhile, access segment profit, driven primarily by the lower level of revenue and lower product gross margins, was $1.3 million, compared with $6 million.

Services Segment: Due to lower deployment, support agreement and professional services, service segment revenue was $44.2 million, compared with $50.7 million in Q2 2012. Likewise, the decrease in segment revenue declined to $14.8 million from $17.2 million due to the lower level of revenue from support agreements and professional services.

The vendor has forecast Q3 2013 earnings to come in between $200 million to $220 million.

Shares of Tellabs were listed at $2.23, down 8 cents, or 3.46 percent, in Friday morning trading on the Nasdaq stock exchange. 

For more:
- see the earnings release (.pdf)

Special report: Wireline telecom earnings in the second quarter of 2013

Related articles:
Tellabs appoints Crowe Horwath partner Larry Rieger as acting CFO
Tellabs Q1 revenue declines to $209 million on challenges in Europe, Mexico
UPDATED: Layoffs on tap as Tellabs Q4 revenue declines to $242 million
Tellabs appoints Dan Kelly as new CEO, president
Tellabs announces more layoffs as revenue drops to $264M

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