Tellabs posts rough Q1: Company’s stock continues to sink

Tellabs Inc. reported $16.6 million in earnings in the first quarter, down nearly 35% from the $25.5 million it brought in during the year-ago period. The company’s stock was down nearly 17% to $5 per share on the news.
Since Tellabs’ former president and CEO Krish Prabhu announced his resignation in November following a plunge in quarterly revenue, Tellabs’ stock has steadily fallen from $7.69 to today’s new low.
In late January, the company announced that fourth quarter profit dropped 78% from the previous year to $6 million. The lagging profits forced the company to fire 225 employees, in addition to the 125 who already lost their jobs in a restructuring that began in September.
The company’s first-quarter revenues were up 3% from last year to $464 million, however earnings continued to dip.
Rob Pullen, the company’s president and CEO, said he expects new products from the mobile and fixed-line network company to help stem the outgoing flow.
“Tellabs performed well in a challenging industry environment. Going forward, our top priority is to free up resources to innovate for customers,” he said.
The company expects second-quarter revenue to be in the range of $425 million to $445 million.