Tellabs to cut 300 jobs
By David Roeder Business Reporter email@example.com February 1, 2013 10:23AM
Third-quarter earnings at Tellabs are up about a percent higher compared to third-quarter earnings a year ago. | Submitted photo
Updated: March 3, 2013 6:09AM
Tellabs Inc. said it plans to lay off 300 people as it stops development of a new line of routers.
The Naperville-based maker of switching equipment for cable and telecommunications firms also reported a more than four-fold increase in its net loss for the fourth quarter compared with the same period a year earlier.
The company told analysts on a conference call Friday that it plans to reduce its quarterly expenses by nearly 25 percent, to $75 million. The layoffs planned in 2013 will affect about 12 percent of its work force.
A spokesman could not specify how many people will be affected at the Naperville headquarters, but he said the cuts will hit locations worldwide. The company is ceasing development of its 9200 line of routers.
Tellabs reported a net loss of $23 million, or 6 cents per share, compared with a loss of $5 million, 1 cent a share, for the fourth quarter of 2011. Revenue fell 24 percent to $242 million.
On word of the results, which were issued after the market’s close on Thursday, Tellabs stock sank Friday to its lowest point in nearly 20 years. The shares closed Friday afternoon at $2.11, down 17 cents.
“We’ve made some tough business decisions. But we do believe that we are investing in the right areas where our customers are spending money and where Tellabs can bring solutions to help our customers succeed,” chief executive Dan Kelly told analysts.