NAPERVILLE, Ill. -- Tellabs today reported first-quarter 2005 revenue of $436 million, up 65% from $264 million in the first quarter of 2004. Tellabs' first-quarter 2005 revenue includes a full quarter of AFC product revenue of $128 million. Excluding AFC product revenue, Tellabs' revenue grew 17% year over year.

Tellabs earned $0.7 million or less than one cent per share in the first quarter of 2005 on a GAAP basis. Tellabs earned $26 million or 6 cents per share on a non-GAAP basis. Non-GAAP results exclude $13.2 million of restructuring and other charges and $13.9 million in the amortization of purchased intangibles and deferred stock compensation.

"Broad-based demand for our products propelled Tellabs' first-quarter revenue growth. Our continued focus on improving profitability enabled Tellabs to exceed Street expectations," said Krish A. Prabhu, Tellabs president and chief executive officer. "These results reflect our progress in successfully integrating the recently acquired companies, AFC and Vinci Systems."

Transport - Revenue from transport systems totaled $158 million, up 16% from $136 million in the first quarter of 2004.

Access - Revenue from access products totaled $128 million. [Note: The access revenue category includes all products acquired through the merger with AFC, which closed on Nov. 30, 2004. Tellabs had no access category in the first quarter of 2004.]

Managed Access - Revenue from managed access systems was $93 million, up 34% from $69 million in the first quarter of 2004.

Broadband Data - Revenue from broadband data products was $7 million, up 69% from $4 million in the first quarter of 2004.

Voice Quality Enhancement - Revenue from voice-quality enhancement and other systems amounted to $15 million, down 34% from $23 million in the first quarter of 2004.

Services-Services revenue was $35 million, up 11% from $32 million in the first quarter of 2004.

On Feb. 2, Tellabs announced that its Board of Directors authorized the repurchase of up to $300 million in shares of the company's outstanding common stock. As of April 19, 2005, Tellabs has purchased $118.7 million (16.5 million shares) of its common stock.

Tellabs Inc.