TLAB Shakeup Coming
12:15 PM -- Argus Research Co. analyst Jim Kelleher had a great observation in his research note yesterday:
In coming months, we expect CEO Pullen - after a complete assessment of operations - to announce a substantial downsizing at Tellabs, as he seeks to shift the company into a network specialist role akin to the role developed by Ciena.
This fits nicely with what I wrote just after Tellabs announced it wouldn't be supplying GPON gear to Verizon.
Tellabs won't sell itself. And who'd buy it anyway?
- The 5500 is coal-powered.
- The 8800 is being lapped by its competitors.
- The two biggest broadband access accounts delivered via the AFC acquisition -- BellSouth and Verizon -- are now toast.
Again, look at Adtran and Ciena. Those companies are pretty easy to size up. They're not good at everything; they're good enough at enough things.
- Put more resources behind its optical transport and ROADMs?
- Buy Aktino, Hatteras, or something like it?
- See if it can get $5.25 a share from Nokia-Siemens?
— Phil Harvey, Editor, Light Reading