Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA), struggling to reverse an ongoing sales slump, is cutting another 200 staff from its payroll as it looks to further reduce its operating cost base and claw its way back to profitability. (See Tellabs Reports Q3 Loss of $3.9M .)
The company has just announced third-quarter revenues of US$264.4 million, down nearly 20 percent compared with the same period a year ago and at the low end of its revenues guidance for the quarter.
It expects fourth-quarter revenues to be in the range of $240-260 million, way below the $290.4 million anticipated (on average) by Wall Street analysts and a long way short of the $317 million reported for the fourth quarter of 2011.
The transport equipment vendor announced earlier this year that it was cutting 530 jobs and has subsequently reduced its operating costs. Now it's looking for more of the same as the carrier capex squeeze hits its sales. (See Tellabs to Restructure, Cut 530 Jobs.)
acucons, User Rank: Light Beer 12/5/2012 | 5:18:39 PM
re: Tellabs Cutting More Jobs
I am not suprised that Tellabs is struggling for survival, with a business strategy that really only favors the former monopoly big telcos. I recall inheriting a Tellabs 5500 DACS in an acquisition, and contacting Tellabs about using it. Their response was a legalistic warning that we couldnt use it unless we "relicensed" it which of course meant paying them a bunch of money just to continue to use it.
We junked the 5500 and replaced it with Fujitsu fiber mux products which did a great job at DACs function, and never looked back. This seems entirely self-inflicted.
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