Tellabs reports 22 percent revenue slide

While network operators have reported fairly solid results for the first quarter thus far, their vendors are feeling the effects of lower capital spending, but perhaps not as much as some analysts had predicted. Network equipment vendor Tellabs posted a 22 percent drop in sales revenue for the first quarter, tallying almost $362 million. The figure actually beat some analyst estimates.

First quarter net income was about $7 million, down from about $17 million for the same quarter last year. However, Tellabs said its profit margins were improving, and that first-quarter revenue actually grew by 45 percent in the company's fastest growth area--data products.

The company said it expects second-quarter revenue to be "flat to up by a high-single-digit percentage."

For more:
- Here's the Tellabs press release

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