NAPERVILLE, ILL. ( TheStreet) -- On Monday, Tellabs ( TLAB) said profit dropped amid declining sales in the second-quarter.
The Naperville, Ill.-based outfit reported earnings at $15.7 million, or 4 cents a share, compared to $39 million, or 10 cents, in the year-earlier period. After excluding items, Tellabs said in a press release that it earned 8 cents a share compared to 4 cents a share last year. Revenue for the telecommunications equipment supplier came to $385.4 million, which is down 11% from the $432.5 million in revenue posted during the year-ago quarter. All three revenue segments of the business -- broadband, transport and services -- saw declines, though it did see sales growth in broadband's data products. On average, a group of analysts polled by Thomson Reuters expected Tellabs to report earnings at 6 cents a share on revenues of $381.3 million. "We continue to achieve solid gross profit margins, and our business appears to be stabilizing as customers placed the strongest orders in more than a year," Tellabs CEO Rob Pullen said in a press release. "But it's too soon to predict a recovery." Gross profit margins also grew to 43.5% as against a year-ago figure of 34.7%. The cost of revenue was slashed by 23% to come to $217.9 million in the quarter.