Tellabs posts disappointing quarter

Tellabs Inc. said its first-quarter net profit plummeted 51 percent and revenues fell 12 percent as the company suffered decreased sales of its broadband and access products.
The Naperville, Ill.-based equipment provider reported quarterly revenue of $452 million, down from $515 million during the year-ago period; net profit decreased dramatically to $25 million during the quarter from $52 million in 2006. Managed access revenue fell 7 percent, but revenue from data products shot up 33 percent during the quarter to $29 million.
Tellabs also lowered its second-quarter guidance slightly, predicting $500 million to $520 million in revenue.
“Despite industry uncertainties, we are encouraged that Tellabs’ new technologies are taking root in service provider networks,” CEO Krish Prabhu said. “These technologies play a key role in evolving our customers’ networks for video services.”
Tellabs sank following the news but rebounded quickly, settling at $10.72.