NAPERVILLE, Ill.—Tellabs Inc.’s second quarter net profits rose 30 percent year over year, from $41 million to $54 million.
Revenues jumped up 19 percent year over year, from $463 million to $549 million.
The company said its broadband business contributed revenues of $298 million, a 20 percent increase from the year-ago revenue of $248 million.
Krish Prabhu, president and chief executive of Tellabs, said the company “is well-positioned with service providers in faster-growing markets such as fiber access and next-generation transport.”
The company is also well-positioned for a merger or acquisition as the telecom industry continues consolidating equipment vendors. Tellabs’ Chicago neighbor, Motorola Inc., has been mentioned within in the industry as a likely candidate to purchase Tellabs since the combination would boost Motorola’s position in the fiber-to-the-home sector with landline phone companies like Verizon Communications Inc. and BellSouth Corp.
The earnings fell slightly short of analyst expectations, which were reflected as shares of Tellabs’ stock traded down $1.53 to $9.47 per share.
