Tellabs posts 3Q profit but sales fall

Tellabs posts 3rd-quarter profit, reversing loss, but revenue declines

• On 10:13 am EDT, Monday October 26, 2009

NAPERVILLE, Ill. (AP) -- Telecommunications equipment maker Tellabs Inc. posted a third-quarter profit Monday even as sales fell, reversing a year-ago loss that was weighed down by a huge goodwill charge.

The company earned $29.3 million, or 7 cents per share, up from a loss of $998.5 million, or $2.51 per share, in the year-ago quarter, which included a goodwill charge of $988.3 million. Of the noncash charge, about $594.2 million was for a write-off of goodwill related to the company's broadband segment and the rest to its transport segment.

Revenue fell 8 percent to $389.3 million from $424.1 million.

Analysts, on average, were expecting a profit of 6 cents per share on sales of $394 million, according to a survey by Thomson Reuters.

The company said it expects fourth-quarter sales to be flat, plus or minus three percent. Analysts are predicting sales of $399.1 million.

Tellabs shares rose 3 cents to $6.69 in morning trading.