Despite lowering its revenue and earnings projections for the first quarter,
Tellabs Inc. shares rose more than 6 percent Thursday, closing at $48.44.
The company said its latest guidance stemmed in part from 'below-trend'
growth in its 'Cablespan' circuit-switched cable-telephony product line.
However, Tellabs maintained its 30 percent growth target for its new 'Titan
Tellabs said it expects first-quarter sales to be in the range of $830
million to $865 million, down from between $865 million and $890 million. The
company projected earnings per share in the range of 35 cents to 38 cents, cut
from 39 cents.
For the year, Tellabs forecast earnings per share of between $2.13 and $2.17
and revenue of $4.35 billion to $4.4 billion.
Connected to the announcement, Tellabs said it closed its previously
announced deal to absorb cable-Internet-protocol-equipment player Future
Networks Inc. for $133 million in cash and stock.
Tellabs -- which plans to use Future Networks' technology to flesh out its
voice-over-IP product portfolio -- said it expects the acquisition to break even
later this year and to add to earnings in 2002.