|
Tellabs 2Q to tumble
|
 |
June 19, 2001: 4:35 p.m. ET
Telecom equipment company expects much lower sales and earnings for 2Q
|
NEW YORK (CNNfn) - Telecom equipment maker Tellabs said Tuesday second quarter sales would be 36 percent below Wall Street expectations, erasing earnings for the quarter.
The company said it now expects second-quarter sales of $500 million, compared to the consensus estimate of $792 million from analysts polled by First Call. Tellabs now expects to break even for the quarter, compared to consensus forecasts for a profit of 29 cents per share.
Tellabs (TLAB: Research, Estimates) blamed the "dramatic changes affecting the landscape of the telecommunications landscape," saying service providers are only buying equipment to meet the immediate needs of their customers.
The stock fell $3.19 to $18.01 in after-hours trading.
"While we continue to see caution from our customers in the pace of equipment deployment, our market position remains intact, and we are focused on ensuring the most profitable path through the current environment," said Richard C. Notebaert, Tellabs president and CEO, in a statement.
On June 15 Nortel Networks Corp. (NT: Research, Estimates) said it will cut another 10,000 jobs and warned it expects a second-quarter loss of $19.2 billion, much wider than Wall Street had forecast, due to sluggish sales of telecommunications gear. 
|
|
|
Tellabs
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
