Hit by reduced carrier spending and tough competition from low-cost Asian rivals, Tellabs Inc. (TLAB) reported smaller third-quarter profit and sales than Wall Street expected.
Net income amounted to $29.3 million while revenue totaled $389.3 million – analysts had forecast $394 million in revenue. Still, the numbers beat the year-earlier loss of $998.5 million.
Another plus was that Tellabs was able to improve its profit margin in the third quarter. That came at the expense of cost cuts such as layoffs, even as the network equipment maker also sold more profitable broadband gear.
Nonetheless, the company expects flat sales for the rest of the year. Analysts are forecasting $399 million in revenue for the fourth quarter.
