Light Reading

Tellabs Axes Product, Cuts Jobs

Ray Le Maistre

Having seen its sales crash by more than 18 percent in 2012, transport equipment vendor Tellabs Inc. is slimming down even further in an effort to stabilize itself. Tellabs is discontinuing development of its SmartCore 9200 router, which was announced only 16 months ago, following an analysis of customer demand, market conditions and potential returns. The product had not yet started to ship to customers but sales had been expected this year. (See Tellabs Smartens Up Its Routers.) As a result, the company is cutting its headcount again, this time by 300. The vendor announced a couple of headcount reduction rounds during 2012. (See Tellabs Cutting More Jobs.) Instead, the company (like just about every other network equipment vendor still in business) is turning its attentions to the potential of software-defined networking (SDN) and says it will "demonstrate new software-defined networking (SDN) and self-optimizing networks (SON) capabilities at Mobile World Congress in February." The news comes as Tellabs reports full-year 2012 revenues of US$1.05 billion, down 18.1 percent compared with 2011. Full-year net loss was $172 million, slightly better than a year earlier. Its fourth-quarter revenues were $242 million, down 23.5 percent from a year earlier and worse than expected. The Data products division had a particularly bad quarter, with revenues down more than 48 percent to $52.2 million due to poor sales of the vendor's 8800 and 8600 routers, which are pitched at mobile backhaul networks, and the 8100. Fourth-quarter net loss (including all costs) was $23.2 million. Before one-time costs, the company reported a net profit of $3 million for the quarter, slightly better than expected. And the first quarter of 2013 isn't shaping up well. Tellabs expects to report revenues of $205 million to $220 million, way below the Wall Street analysts' consensus estimate of $241.6 million. As a result, the company's share price is dipping in pre-market trading, down 5.3 percent to $2.16. — Ray Le Maistre, International Managing Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
Light Reading's conference in November will attempt to answer all of the big questions around white box networks. No pressure...
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Custom TV
ZTE in Budapest ITU 2015

10|13|15   |   03:26   |   (0) comments

ZTE Chief Architect David Huo discusses the company's progress on the 5G front.
Telecom Innovators Video Showcase
Close-up on ConfD

10|12|15   |   10.21   |   (0) comments

Tail-f's Renée Robinson-Stromberg tells Steve Saunders about the powerful ConfD management interface.
Women in Comms Introduction Videos
Women in Comms: Highlights From Dallas

10|12|15   |   2:23   |   (1) comment

The best soundbites, quotes and words of wisdom from leading women from Intel, AT&T, Verizon and Genband at our recent WiC breakfast in Dallas.
Telecom Innovators Video Showcase
NetNumber Founder on Managing Signaling Control

10|12|15   |   6:36   |   (0) comments

NetNumber Founder and Chief Strategy Officer Doug Ranalli describes the essential complexity of real-world signaling-control and how NetNumber enables carriers to bring signaling-control "under-control". Learn why virtualization alone isn't the answer.
LRTV Documentaries
Verizon Gets Proactive on App Performance

10|12|15   |   04:50   |   (0) comments

SDN is turning traditional service models around to allow Verizon to measure and deliver performance at the application layer. As Shawn Hakl, VP of enterprise networking and managed solutions for Verizon, explains, the carrier had to develop new skill sets and change some of its internal operations, but the payoff was happier enterprise customers.
Telecom Innovators Video Showcase
Tail-f, Cisco & What the Future Holds

10|9|15   |   8:17   |   (0) comments

Steve Saunders meets with Tail-f's Director of Technology, Carl Moberg, in Stockholm to discuss becoming part of Cisco, ETSI MANO, virtualization and the need to combine science and business in order to create opportunities for service providers.
LRTV Interviews
Broadband Forum Embraces SDN & NFV

10|9|15   |   02:42   |   (1) comment

At Gigabit Europe 2015, Robin Mersh and Kevin Foster from the Broadband Forum explain how the industry body is adapting to meet the SDN, NFV and cloud needs of the access network sector.
LRTV Interviews
Top Tips for FTTH Operators

10|8|15   |   02:26   |   (1) comment

At Gigabit Europe 2015, Ventura Team co-founder Richard Jones talks about some of the key business case considerations for FTTH network operators.
LRTV Interviews
M-net Calls for FTTx Unity

10|8|15   |   03:45   |   (0) comments

At the Gigabit Europe event, Jörn Schoof from M-net, the Munich city network operator, calls for industry collaboration on fiber broadband access rollouts.
LRTV Documentaries
The Business Case Challenge for NFV

10|7|15   |   03:47   |   (0) comments

Virtual CPE is one of the early success stories for network functions virtualization, as service providers are finding flexible, programmable CPE solves a lot of logistics problems and reduces their cost. But even here, Masergy Communications faced a business case challenge, says CTO Tim Naramore.
LRTV Interviews
JT Offers Some Gigabit Lessons

10|7|15   |   4:08   |   (1) comment

Barna Kutvolgyi, managing director, Global Consumer, at JT, the incumbent operator on the island of Jersey, talks about how other service providers can learn from his company's gigabit broadband rollout experiences.
LRTV Interviews
AT&T's Chiosi on the Potential of Open Source

10|6|15   |   06:27   |   (0) comments

AT&T Distinguished Network Architect Margaret T. Chiosi talks to Light Reading's Carol Wilson about the potential for open source technology to liberate communications service providers.
Upcoming Live Events
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Network appliances have a strong value proposition in today's networks and will continue to do so in the NFV and SDN-enabled networks of tomorrow.
Hot Topics
Dell Buys EMC for $67B in Biggest Tech Deal Ever
Mari Silbey, Senior Editor, Cable/Video, 10/12/2015
Cord Cutting? 'Fraid so.
Brett Sappington, 10/7/2015
Infinera Fleshes Out Its Metro 100G Story
Ray Le Maistre, Editor-in-chief, 10/7/2015
Cisco Makes 'Martian' Connection
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/9/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
Cats with Phones
"What?! I'm on with Finisar about their stock price tanking" Click Here
Live Digital Audio

Think NFV is just about virtualization? Think again!

Network architects are learning that there's a lot more to the technology than first thought – more complexity, that is; but also, more potential benefits.

On May 29th 1 PM ET, Steve Saunders, founder and CEO of Light Reading, will be drilling into the "pains and gains" of NFV with Saar Gillai, SVP & GM, HP Communications Solutions Business at Hewlett-Packard Co. (NYSE: HPQ) (HP). He has defined a four-step NFV model describing a sequence of technology innovation. It's a must-read doc for any network architect looking to get to grips with their NFV migration strategy. Join us for the interview, and the chance to ask Saar your NFV questions directly!