Tellabs net sales plummet

Tellabs today reported a big drop in sales for its third fiscal quarter, with the company recording a net loss of $91.1 million compared to a loss of $49.5 million in the same quarter last year.

Much of that loss was attributable to $68 million in restructuring and other one-time charges. The company also took an impairment charge of $30 million for investments. Excluding these charges, Tellabs recorded a pro forma net loss of $17 million, or 4 cents per share, for the quarter.

On the positive side, the company slashed its operating expenses, excluding the restructuring charge, by 9%, down to $153 million. Going forward the company plans to further reduce its operating expenses to $145 million by the first quarter of 2003 through previously announced restructuring actions, and continued cost-control efforts.

“We’re part of an unhealthy industry at this point,” said Tellabs CEO and Chairman Michael Birck. “No one thinks it’s a terminal illness but there aren’t very many signs of near term relief.”--Vince Vittore, news editor