Tellabs Warns on 3Q Results

The telecom equipment maker said it expects profits and revenues to fall short of the Street's estimates.
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Telecom equipment maker

Tellabs

(TLAB)

on late Thursday warned third-quarter revenue and profits would fall below Wall Street's expectations.

The Naperville, Ill.-based company, blaming lower-than-expected revenue from North American wireless service providers, now expects third-quarter revenue of between $452 million and $460 million. It predicts non-GAAP earnings of between 2 cents and 3 cents per share, excluding equity-based compensation, amortization of intangibles and previously announced restructuring charges of $6 million.

Analysts polled by Thomson Financial expect earnings of 6 cents a share on revenue of $501.6 million.

The company said it expects non-GAAP gross profit margins are expected to range from 31% to 32%.

The company is slated to report earnings on Oct. 23. Shares were losing 50 cents, or 5.2%, to $9.08 in recent after-hours trading.