Tellabs’ earnings up; kills OLT for FiOS
Tellabs brought in $464 million in its first quarter of 2008, up 3 percent from $452 million in the first quarter of 2007, and the company cleared $17 million, less than the net of $25 million recorded in Q1 2007.
Tellabs used the occasion of reporting its financials to announce the official discontinuation of its 8865 optical line terminal (OLT), designed specifically for Verizon and its FiOS network. Tellabs had been losing money selling the 8865 to Verizon. Earlier this month, the two said they had agreed to end their contract for that specific product.
Tellabs said it will continue development of the Tellabs 1100 series of GPON OLTs. The 1100s can be used with any type of FTTx network, not just fiber-to-the-premises (FTTP) networks, as was the case with the 8865. Tellabs said it will use the resources that would have been devoted to the 8865 to fund growth initiatives.
The company said it is also doing a new installation of ROADM equipment, though it did not specify the customer. Tellabs had been supplying Verizon with ROADM gear.
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