Tellabs, the US telecommunications equipment manufacturer which employs 560 people in the State, today reported a sharp drop in quarterly results due to the slowdown in customer spending, but repeated its view that demand has stabilized.
The Illinois-based company reported net income of $13.6 million or pro forma earnings per share of 3 cents, compared with $231.8 million, or 56 cents a share a year ago.
Tellabs recorded restructuring and one-time charges of $137 million in the latest quarter for work force reductions, plant closings and a review of inventory.
Revenues for the quarter tumbled to $470 million from $1.16 billion last year. In October, the company did not provide guidance for the fourth quarter other than to say demand was stabilizing and revenues would be in the range of the third quarter's $448.2 million.
"We are encouraged to see signs of stability in the United States, driven by customer demand for Tellabs' metro optical networking products," said President Mr Richard Notebaert.
Tellabs said in January it would record a $150 million charge in the quarter for job cuts, plant closures, the discontinuation of an optical product and the write-down of excess inventories.
Sales of optical networking systems in the quarter increased sequentially to $267 million, up 15 per cent, driven by strong spending among local exchange carriers for Tellabs' core products, the company said.
Tellabs' broadband access systems totaled $115 million, reflecting continued weakness outside the United States in managed access services, the company said. It did not provide a comparative figure.
Tellabs shares closed at $15.07 yesterday. Its shares have held to a recovery path since bottoming at $8.98 on October 3rd.