NEW DELHI, Nov 28 (Reuters) - U.S.-based telecom equipment maker Tellabs Inc said on Tuesday it expected revenues and profits to grow by more than 30 percent in 2001, fuelled by the global expansion of telephone networks.
The forecast accompanied healthy results which saw profits for the quarter ended September 29 rise 49 percent to $210.4 million, from $141.2 million in the same period last year.
Sales grew 46.2 percent to $870.6 million from $595.4 million.
``We expect to grow once again next year, both revenues and profits at 30 percent or more,'' Brian J. Jackman, president, global systems and technology told a news conference.
The Nasdaq-listed company had earlier said it was on track to exceed its full-year 2000 goals of 30 percent earnings growth and 40 percent growth in revenues.
Jackman said continued demand for bandwidth and services was forcing telecom carriers to increase spending on telecom networks.
``Those (telecom) budgets have grown at record rates over the last couple of years and while they (next year's budget) may not surpass those rates we still think they will be quite strong,'' he said.
Tellabs, which had total sales of $2.3 billion in 1999, has three product lines: optical networking, broadband access solutions and next generation switching.
Optical networking is the group's biggest product line, accounting for 60 percent of revenues, and Jackman said more products are expected to be added to the line.
A new software research and development centre, in which the group has invested $2.5 million and can employ 150 people, was opened on the outskirts of Delhi on Tuesday and will develop new software for optical products.
Jackman said that while all product lines would grow, switching would have the highest percentage growth since it was growing on a small base.
``The next generation switching area is a brand new high risk and high reward area. We know it is going to grow but we do not know how rapidly,'' Jackman said.
He expected the access business would grow at more than 30 percent and finish next year with revenues of $1 billion.
Tellabs shares closed Monday at $54\07 on the Nasdaq |
