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Tellabs Meets Estimates

The telecom gear house posts stronger-than-expected revenue.
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fourth-quarter loss widened Tuesday, but the telecom-gear maker's pro forma profit and revenue matched Wall Street estimates.

For its fourth quarter ended Dec. 31, the Naperville, Ill., company lost $139 million, or 32 cents a share, compared to the year-ago loss of $23 million, or 6 cents a share. Revenue rose to $379 million from $279 million a year ago, the latest period including $53 million worth of revenue from one month's operation of the acquired Advanced Fibre unit.

Tellabs said the latest quarter included $180 million of charges related to the AFC and Vinci Systems buys. Excluding those and certain other costs, the fourth-quarter profit was $41 million, or 9 cents a share, which was in line with the Wall Street estimate.

"Revenue exceeded our expectations in the fourth quarter and in 2004 as a whole," said CEO Krish A. Prabhu. "Going forward, Tellabs will stay focused on growth opportunities that fit our customers' needs for fiber access, next-generation wireless and broadband networking."

Tellabs said transport revenue rose 33% from a year ago in the latest quarter, while managed access revenue rose 16%.

Early Tuesday, Tellabs shares rose 25 cents to $7.90.