On Air Now

Listen

Listen Live Now » 101.1 FM Green Bay, WI

Weather

Current Conditions(Green Bay,WI 54303)

More Weather »
55° Feels Like: 55°
Wind: W 5 mph Past 24 hrs - Precip: 0”
Current Radar for Zip

Tonight

Clear 41°

Tomorrow

Mostly Sunny 68°

Thurs Night

Partly Cloudy 43°

Alerts

Tellabs cuts more jobs chasing profitability

(Reuters) - Tellabs Inc said it will cut 530 jobs -- its second such move in six months -- as the network equipment maker tries to cut costs and return to profitability.

The company, which posted a loss for the fifth straight quarter on Tuesday, will take a charge related to the job cuts in the first quarter.

Shares of Tellabs, which have lost more than 40 percent of their value since reporting a surprise loss for the fourth quarter of 2010, fell as much as 6 percent to $3.92 in morning trade on the Nasdaq.

On a conference call with analysts, Tellabs said it will shut down its facilities in Petaluma, California; Vancouver, Canada; Bangalore, India and Karachi, Pakistan.

The restructuring, which will continue till the first quarter of 2013, is likely to yield $100 million in cost savings for Tellabs.

On July 26, the company had said it would cut 330 jobs.

"In a climate of economic uncertainty, Tellabs needs to align expenses with revenue," Chief Executive Rob Pullen said on the call.

The company estimated a pretax charge of $107 million, most of which it will incur in the current quarter.

Tellabs, which supplies switches and routers to telecom operators, has lost market share to larger rivals. Weak spending by telecom operators has added to its worries.

The company shocked investors when it reported a surprise loss in the fourth quarter of 2010. It has since remained a loss-making entity. On Tuesday, Tellabs posted a 1 cent per share loss for the fourth quarter.

"2011 was the most challenging year in our recent history," CEO Pullen said.

The company, however, posted a 1 cent per share profit after adjusting for one-time charges and outpaced analysts' expectation for a break-even quarter, according to Thomson Reuters I/B/E/S.

(Reporting by Himank Sharma in Bangalore; Editing by Gopakumar Warrier and Joyjeet Das)

Comments