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Tellabs Tumbles on View

Shares drop 9%.

Tellabs (TLAB) fell 9% early Tuesday after the telecom equipment maker guided below Wall Street's revenue estimate for the fourth quarter.

The Naperville, Ill., company made $59 million, or 13 cents a share, for the third quarter ended Sept. 29, up from the year-ago $42 million, or 9 cents a share. Revenue rose to $523 million from $464 million a year earlier.

Analysts surveyed by Thomson Financial were looking for a 13-cent profit on sales of $523.6 million.

"We believe that telecom service providers are in the early stages of network transformations driven by new mobile and consumer triple-play services," said CEO Krish A. Prabhu. "Tellabs is well-positioned in faster-growing markets as service providers advance their networks."

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The company said on a conference call later Tuesday that it expects to report fourth-quarter revenue of about $525 million to $550 million, according to

Reuters

. That's shy of the $553 million Thomson target.

Shares fell 92 cents to $10.10.