Tellabs swings to big profit
Copyright 2006 TheStreet.com, Inc.
January 26, 2006 Thursday 4:40 PM Eastern Time
By TSC Staff
Tellabs (TLAB:Nasdaq) swung to a better-than-expected fourth-quarter profit as demand remained brisk for broadband wireless products.
The company earned $92.1 million, or 20 cents a share, in the quarter, compared with a loss of $138.7 million, or 32 cents a share, a year ago. Excluding a charge, Tellabs earned $100 million, or 22 cents a share, in the quarter, beating estimates by a nickel.
Fourth-quarter revenue rose 37% from a year ago to $521 million. Analysts were expecting $495.9 million, according to Thomson First Call.
Among segments, fourth-quarter sales rose 8% from last year to $170 million in Tellabs' data transport business, while sales more than tripled to $180 million in access solutions. Broadband data sales were $31 million, up from $3 million, while revenue from managed access fell 19% from last year, to $91 million.
"Customer demand for broadband wireless and fiber access continues to propel Tellabs' growth," the company said. "Tellabs is well-positioned to grow as our customers invest in upgrading their network infrastructure to handle the proliferation of broadband devices and multimedia Internet content."
The stock closed at $10.51 Thursday.