Tellabs Misses 1Q Earnings and Rev - Analyst Blog
26 Aprile 2013 - 10:30AM
Zacks
Tellabs Inc.
(TLAB) reported weak financial results for the first quarter of
2013, missing the Zacks Consensus Estimate. GAAP net loss in the
reported quarter was $55.9 million or a loss of 16 cents per share
compared with a net loss of $139.8 million or 38 cents per share in
the prior-year quarter. Quarterly adjusted (excluding special
items) net loss per share of 5 cents was higher than the Zacks
Consensus Estimate of a loss of 4 cents per share. First-quarter
2013 total revenue of $209.4 million was down 18.8% year over year
and also below the Zacks Consensus Estimate of $212
million.
Quarterly gross margin was 34.5%
compared with 37.1% in the year-ago quarter. Operating expenses, in
the reported quarter, were $133.1 million compared with $232.6
million in the prior-year quarter. During the first quarter of
2013, the company repurchased 12 million shares for a total
consideration of $26 million.
During the first quarter of 2013,
Tellabs used $5.4 million of cash for operations compared with
$37.5 million in the prior-year quarter. Free cash flow, during the
reported quarter was negative $8.5 million compared with negative
$42.5 million in the year-ago quarter. Tellabs exited first quarter
2013 with $571.6 million of cash and marketable securities on its
balance sheet compared with $604.4 million at the end of 2012.
Further, there was no outstanding debt on its balance sheet.
Optical
Segment
The Optical segment revenues were
$93.1 million, down 10.8% year over year. The decline was primarily
driven by significantly lower sales of the Tellabs 5000 digital
cross-connects systems and Tellabs 6300 managed transport systems.
The segment profit was $12.8 million compared with $14.8 million in
the year-ago quarter.
Data
Segment
Total revenue generated by the Data
segment was $32.9 million, down 52.6% year over year, hamstrung by
lower sales of the Tellabs 8100 managed edge systems and the
Tellabs 8800 and 8600 multiservice router series. The segment
generated a loss of $14.8 million compared with a loss of $5
million in the prior-year quarter.
Access
Segment
Total revenue of the Access segment
was $39 million, up 8.6% year over year. The rise in revenues
was attributed to higher sales of Tellabs1600 single-family optical
network terminals and the Tellabs 1000 access systems. The
segment’s profit surged to $8.2 million, from $6.4 million recorded
in the prior-year quarter.
Services
Segment
Total revenue of the Service
segment was $44.4 million, down 7.9% year over year, hurt by lower
revenues generated from the deployment services and support
systems. The segment profit fell to $14.6 million from $15.2
million in the prior-year quarter.
Geographic
Distribution
In the first quarter of 2013, the
North American region generated $122.8 million (59% of the total
revenue) in revenues compared with $126.6 million in the prior-year
quarter. The rest of the world generated the remaining $86.6
million (41% of total revenue) compared with $131.3 million
recorded in the year-ago quarter.
Guidance
Management expects the company’s
second-quarter 2013 revenues of $200 million to $220 million.
Non-GAAP gross margin is expected to be 36%, plus or minus 1 or 2
percentage points, based on product mix. Non-GAAP operating
expenses are expected to be mid-$80 million. Non-GAAP tax rate is
expected to be around 32%.
Other Stock to
Consider
Tellabs currently has a Zacks Rank
#3 (Hold). Other stocks in this segment, which are worth
considering, include Motorola Solutions Inc.
(MSI), Qualcomm Inc. (QCOM) and Sonus
Networks Inc. (SONS). All these stocks currently carry a
Zacks Rank #2 (Buy).
MOTOROLA SOLUTN (MSI): Free Stock Analysis Report
QUALCOMM INC (QCOM): Free Stock Analysis Report
SONUS NETWORKS (SONS): Free Stock Analysis Report
TELLABS INC (TLAB): Free Stock Analysis Report
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