Tellabs Earnings: Look Out Below!

The Cheat Sheet

S&P 500 ( NYSE:SPY ) component Tellabs, Inc. ( NASDAQ:TLAB ) swung to a loss in the first quarter, missing analysts’ forecast. Tellabs, Inc. designs and markets equipment to telecommunications service providers worldwide.

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Tellabs Earnings Cheat Sheet for the First Quarter

Results: Swung to a loss of $24.1 million (7 cents/diluted share) in the quarter. The Tellabs, Inc. had a net income of $45.9 million or 12 cents per share in the year earlier quarter.

Revenue: Fell 15.1% to $322.4 million YoY.

Actual vs. Wall St. Expectations: TLAB fell short of the mean analyst estimate of a loss of 3 cents/share. Estimates ranged from a loss of one cent per share to a loss of 6 cents per share.

Quoting Management: “While international revenue grew 40% from a year ago, lower revenue in North America drove Tellabs’ first-quarter results,” said Rob Pullen, Tellabs president and chief executive officer. “Going forward, we will continue to invest in the smart mobile Internet through increased R&D spending to position Tellabs for long-term growth.”

Key Stats:

Gross margins fell 12.7 percentage points to 37.9%. The contraction appeared to be driven by falling revenue, as the figure fell 15.1% from the year earlier while costs rose 6.8%.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 28.5%.

Competitors to Watch: ADTRAN, Inc. ( NASDAQ:ADTN ), Ciena Corporation ( NASDAQ:CIEN ), Sycamore Networks, Inc. ( NASDAQ:SCMR ), Ditech Networks Inc. ( NASDAQ:DITC ), Calix, Inc. ( NYSE:CALX ), Telefonaktiebolaget LM Ericsson (ADR) ( NASDAQ:ERIC ), Juniper Networks, Inc. ( NYSE:JNPR ), Cisco Systems, Inc. ( NASDAQ:CSCO ), Alcatel-Lucent (ADR) ( NYSE:ALU ), and Sonus Networks, Inc. ( NASDAQ:SONS ).

Today’s Performance: Shares of TLAB are trading at $5.07 as of April 26, 2011 at 10:07 AM ET, down 5.84% from the previous close of $5.50.

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