Tellabs (TLAB) was a little light on top line, but the bottom line proved solid for the third quarter.
The Naperville, Ill., networking gearmaker posted a net income of $42 million, or 9 cents a share. That compares with a year-ago profit of $46 million, or 11 cents a share.
On an adjusted basis, excluding $15 million in taxes on the $600 million in cash the company repatriated in the third quarter, pro forma profit was 15 cents, compared with the adjusted profit of 12 cents a year ago.
Sales in the quarter ended Sept. 30 were $464 million, up from $462 million in the prior quarter.
Analysts were looking for an adjusted profit of 11 cents on sales of $467 million, according to Reuters Research.
"Customers' robust demand for transport, data and access solutions continues to drive Tellabs' revenue growth," said CEO Krish Prabhu in a press release Tuesday.
Gross margins widened to 46.9% in the third quarter, significantly stronger than the company's recent low margin showing of 41% in the first quarter.
Tellabs' shares fell 15 cents to $9.96 in early trading Tuesday.