Tellabs trimmed its financial guidance, saying its Q3 revenue is now expected to range from $452 million to $460 million, primarily due to lower-than-expected revenue from wireless service providers in North America.
Non-GAAP gross profit margins are expected to range from 31% to 32%, reflecting fewer Tellabs 5500 digital cross-connects sold. As a result, third-quarter GAAP earnings per share, assuming dilution, are expected to range from breakeven to one cent per share. Non-GAAP earnings per share, assuming dilution, are expected to range from 2 cents to 3 cents per share. Non-GAAP earnings per share exclude equity-based compensation, amortization of intangibles and previously announced restructuring charges of $6 million.
“Third-quarter revenue reflected lower sales to North American wireless carriers, yet we saw sequential growth in access and data,” said Krish A. Prabhu, Tellabs president and chief executive officer. “We remain focused on improving profit margins as Tellabs’ new products take root in our customers’ networks.”
http://www.tellabs.com
