Having said that, I'll turn the call over to Rob.Robert W. Pullen Thanks, Tom, and good morning, everyone. In the third quarter, Tellabs faced headwinds as spending was pushed out in North America. Third quarter revenue was $314 million. A previously announced restructuring charge and non-cash accounting charges in the Broadband segment led to a GAAP loss. As you may recall, in July, we announced restructuring that's designed to improve profitability by aligning expenses with our revenue. We plan to cut $50 million in expenses and cost over 4 quarters. As a result, we took a third-quarter restructuring charge of $20 million. We completed our previously announced analysis of goodwill in the Broadband segment. We took non-cash accounting charges of $83 million for goodwill impairment, and $20 million for an in-process R&D impairment due to lower-than-expected broadband product revenue and increased R&D spending for the next-generation products. Largely as a result of these charges, we lost $0.38 a share on a GAAP basis. Although revenue was lower than we expected, we improved on a non-GAAP basis with a loss of $0.01 a share compared with $0.02 a share in the previous quarter. That said, we made progress to transition our business and prepare for the mobile Internet opportunity. Many of Tellabs' fundamentals improved during the quarter. Revenue rose outside of North America, gross profit margins increased sequentially, operating expenses sell, and we continue to generate positive cash from operations. We continue investing in R&D in our next-generation product portfolio. We're encouraged by continuing growth in our business outside North America, which for the first time generated more than half of Tellabs' quarterly revenue. Third quarter revenue outside of North America rose 24% compared with a year ago. For the first time, one of our customers outside of North America generated more than 10% of Tellabs' overall revenue. Gross products generated 59% of third quarter revenue compared with 52% a year ago. Non-GAAP gross profit margins were 41%, up sequentially from 37.7% in the second quarter. Non-GAAP operating expenses continue to fall to $135 million, down from $138 million in the second quarter.
We generated positive cash flow from operations totaling $21.5 million in the third quarter. Our cash, cash equivalents and marketable securities at the end of the quarter stood at $1,030,000,000. We're making progress as we concentrate our research and development on the smart mobile Internet. We are leveraging Tellabs' strong position in mobile backhaul in reduced scenarios such as our new content-aware routing platform, our optical platform, analytics and Professional Services for the mobile Internet.Tellabs continues investing in R&D and next-generation platforms. On a non-GAAP basis in the third quarter, we invested $79 million in R&D. About 90% of R&D is going into our growth products. The lion's share is dedicated to creating smart networks for the mobile Internet. We believe that our R&D is crucial to position Tellabs and our customers for success in the early innings of the mobile Internet game. In September, we announced a new next-generation solution, Tellabs SmartCore 9200 Content-Aware Routing Platform. This new platform will help our customers succeed in making network simpler and smarter, by improving the user experience and by enabling new revenue streams. With the new platform, we're ready to make networks smarter, simpler, more scalable and more adaptable. Read the rest of this transcript for free on seekingalpha.com