Tellabs Shares Perk Up
The numbers were in line with Wall Street estimates. In afternoon trading, Tellabs shares were up 3.88 to 57.38.
Fourth quarter revenues totaled $1.02 billion, up 42 percent from $716 million reported during the same quarter in 1999. Net income was $232 million, up 41 percent from $165 million reported in the fourth quarter of last year. This translates to 56 cents per share, up from 39 cents a year ago.
It was the first quarter Tellabs sold over $1 billion in products and services. Optical sales grew 49 percent year over year to $641 million, or 64 percent of total sales.
In a conference call this morning, CEO Richard C. Notebaert said, “We are seeing strong demand for our optical products and expect to see this get even stronger.” In addition, sales from designing and installing networks increased 140 percent.
John Butler, an analyst with SG Cowen, was pleased with results but expressed concern that the company was trimming its estimates for the next quarter by two cents, to 39 cents per share. When asked if he was concerned that only 20 percent of sales came from international accounts he said, “No, the sweet spot of Tellabs business has traditionally been the domestic market.”
These results come after a strong showing last quarter as well (see Optical Boosts Tellabs Quarter). However, concerns about the company’s marketing strategy have caused its stock to waver (see Tellabs Fails to Impress).
Tellabs was up 4.38 (8.18%) to 57.88 in early trading today.
-- Matt Malina, research associate, Light Reading http://www.lightreading.com