In a press release issued this morning, 53-year-old Prabhu, who has been CEO since 2004, stated: "The Tellabs team has successfully broadened the product portfolio, established new relationships with large service providers, and made progress in repositioning the company… This is the right time for a new leader to begin the next chapter at Tellabs." (See Tellabs Names Prabhu as New CEO.)
There's speculation that Prabhu's past health problems -- he suffered a heart attack in 2005, a source at the company says -- may have been a factor in his decision. But the company declined to comment on the issue. "He didn't give a reason -- he gave a resignation and that was accepted by the board. This is his decision," said a spokesman.
The company has initiated an immediate search for a replacement.
Tellabs has had a disappointing year financially and is the subject of ongoing takeover speculation. See:
- Tellabs Trips Over Wireless
- Tellabs Mum on M&A Talks
- Tellabs Earnings Drop on Access
- Ma Bell Merger Thumps Tellabs
- Is Nokia Siemens Tailing Tellabs?
- Who's Going to Buy Tellabs?
- Yuletide Cheese Log
— Ray Le Maistre, International News Editor, Light Reading