This is a new document I've found on TLAB. It came out today.
=============================== New Warnings Not Surprising
Although investors did have a chance to take a breather last week from the Nortel and JDS Uniphase warnings, new signals still emerged that the duration of the downturn has been underestimated so far. First, Tellabs reduced its forecast for revenues and earnings in the Jun-01 quarter. Sales guidance was slashed by 35-40% to $500M. The company sees break-even pro-forma EPS for the period. Taking into account the timing of the revision in guidance, June 19 th , we tend to view this as a preannouncement of results for the quarter which is close to its end.
To share a thought with John Roth, Tellabs� CEO Richard Notebaert told investors that the ability of service providers to reallocate capacity within their networks is putting continued pressure on equipment spending. This situation also results in strong bargaining position for service providers, which in turn puts significant pressure on Tellabs� gross margin. Tellabs announced that it would take a charge of $252M for the quarter (not to impact pro-forma EPS), which includes one-time restructuring expenses and write-down of goodwill. No guidance beyond Q2 was provided.