Investment bank UBS is maintaining its neutral rating on Tellabs Inc. (TLAB), despite the telecom equipment maker’s $1 billion third-quarter loss, reported on Tuesday.
“We believe Tellabs’ strong balance sheet ... offers some downside protection to shares,” analysts wrote in a memo to clients.
Tellabs’ sales fell 7 percent to $424 million and net losses totaled $999 million, or $2.51 per share, in the third quarter. Most of the losses stemmed from asset write-downs. And yes, layoffs are in the offing.
Shares of Tellabs stock oscillated between drops of 9 and 10 percent on the news.
This has been a rough year for Tellabs. It ended a GPON partnership with Verizon Communications Inc. (VZ), and sales and income numbers have fluctuated mostly downward. The company said the fourth quarter won’t look much better.
