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, which sells telecommunications and networking equipment, said revenue slipped 8% in the third quarter, though the company managed to swing to a profit.

Still, as a potential sign for the telecom industry, Tellabs also said it expected fourth-quarter revenue to be flat on a sequential basis, plus or minus 3%.

In premarket trading Monday after the announcement, Tellabs shares were rising 14 cents, or 2.1%, to $6.80.

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Tellabs reported revenue of $389.3 million from $424.1 million a year earlier as increases in transport and services sales were offset by a slump in broadband revenue. Analysts forecast sales of $394 million, according to Thomson Reuters.

Cost cuts helped boost gross margins to 41.7% from 38.2% in the year-ago quarter.

Earnings were $29.3 million, or 7 cents a share, vs. a loss of $998.5 million, or $2.51 a share in last year's third quarter. The year-earlier loss included a $988.3 million goodwill impairment charge.

-- Written by Sung Moss in New York

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