Network equipment vendor Tellabs posted a net loss of $999 million as part of its third quarter earnings report, though most of the loss came from a $988 million charge to write-down intangible assets. The company said it would cut some of its investment in the access market--but not pull out of the access business--and also would eliminate about 280 jobs between now and mid-2009.
Without the charge, Tellabs would have turned a $19 million profit. Instead, the massive loss is far off the $3.6 million profit it earned in the third quarter of 2007. Revenue was down about 7 percent to $424 million. The news could get worse in the fourth quarter, as the vendor projected it will rake in between $400 million and $424 million in revenue, which would be below analyst expectations for $436 million.
MarketWatch reports on Tellabs' Q3 numbers
Telephony covers the cuts
Tellabs exited a GPON deal with Verizon this year
Rob Pullen took over as CEO of Tellabs in early 2008