Maybe already posted. Tellabs Begins 24th Year With Best First Quarter in History
LISLE, Ill., April 20 /PRNewswire/ -- Telecommunications-equipment manufacturer Tellabs, Inc., announced Monday that it
began its 24th year of operation with the highest sales and earnings for any first quarter in company history. It was the
company's second-best quarter, exceeded only by the all- time record sales and earnings reported in the fourth quarter of
1997.
Sales for the first quarter, ended April 3, were $327,502,000, up 32.5 percent from $247,123,000 a year earlier.
Net income for the first quarter was $68,244,000, up 8.2 percent from $63,087,000 a year earlier when operating results
included a pre-tax gain of $20,803,000 ($13,855,000 or 7 cents per diluted share, after tax) on the sale of stock held as an
investment. Excluding the effect of the stock-sale gain, net income for the first quarter of 1998 was 38.6 percent greater than
the level recorded in the first quarter of 1997.
Earnings per share of common stock on a diluted basis for the first quarter were 37 cents, compared with 34 cents (or 27 cents
excluding the stock-sale gain) for the first quarter of 1997.
''1998 began with continued strong performance across Tellabs' three major product lines,'' said Tellabs President and CEO
Michael J. Birck. ''Sales of our SONET-based TITAN(R) 5500 digital cross-connect system exceeded last year's
first-quarter level by 40 percent. MartisDXX(R) system sales were up 26 percent, and echo canceller sales were up 66
percent.
''Tellabs has an aggressive schedule in 1998 for launching new products, including major enhancements to its TITAN 5500
and MartisDXX systems,'' Birck continued. ''In addition, we continue to make good progress in the development of new
ATM-based products that will be introduced in the latter half of this year.''
In February, Tellabs and Coherent Communications Systems Corporation [Nasdaq:CCSC - news] announced a definitive
merger agreement under which Coherent would become a wholly owned subsidiary of Tellabs. In March, Tellabs announced
that it will supply its SONET-based TITAN 5500 digital cross-connect systems to Bell Atlantic under the terms of a new
five-year agreement under which Tellabs was selected as the sole supplier of wideband digital cross-connects to Bell Atlantic.
Tellabs also announced during the quarter that Telefonos de Mexico (Telmex) selected the MartisDXX system for a new digital
leased line network and that Datakom Austria will use the MartisDXX system in a nationwide voice and data network.
Tellabs designs, manufactures, markets and services voice and data transport and access systems. The company's products are
used worldwide by the providers of communications services. Tellabs, Inc., stock is listed on the Nasdaq Stock Market
(TLAB).
Beginning at approximately 10 a.m., Chicago time, Monday, 04/20/98, interested investors can listen to a pre-recorded replay
of the Tellabs analyst teleconference. This replay will be available for 24 hours.
To listen to the pre-recorded teleconference replay: Call toll-free 1-800-633-8284. When prompted, enter the Tellabs
reservation number: 4108327.
For more information, call Tom Scottino at 630-378-7504.
Tellabs, Ttellabs and TITAN are registered trademarks of Tellabs Operations, Inc., in the United States and/or other countries.
MartisDXX is a trademark of Tellabs
TELLABS, INC.
Results of Operations
(Dollars in thousands, except per-share data)
(Unaudited)
Three Months Ended
04/03/98 03/28/97
Sales $327,502 $247,123
Cost of Goods Sold 120,219 95,420
Gross Profit 207,283 151,703
Operating Exp.
Mktg. & G.A. 66,601 45,574
Research & Dev. 43,306 33,236
Goodwill Amort. 1,476 1,506
Total Operating Exp. 111,383 80,316
Operating Profit 95,900 71,387
Other Income (Expense) - Net 5,202 23,338
Profit Before Tax 101,102 94,725
Taxes 32,858 31,638
Net Profit $68,244 $63,087
Earnings per Share
Basic $.38 $.35
Diluted $.37 $.34
Average Number of Shares
of Common Stock Outstanding
Basic 181,873 180,125
Diluted 186,947 185,711
TELLABS, INC.
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
1998 1997
First Quarter Year End
Assets
Current Assets
Cash and investments $600,486 $487,034
Accounts receivable,
less allowance 259,595 284,084
Inventories 94,467 89,614
Other current assets 1,376 2,202
Total Current Assets 955,924 862,934
Property, Plant and Equipment 352,108 338,296
Less accumulated
depreciation (134,170) (128,967)
217,938 209,329
Goodwill 58,482 61,453
Other Assets 54,373 49,663
Total Assets $1,286,717 $1,183,379
Liabilities
Current Liabilities
Accounts payable $48,098 $50,422
Accrued liabilities 123,620 115,917
Income taxes 57,417 59,481
Total Current Liabilities 229,135 225,820
Long-Term Debt 2,850 2,850
Other Long-Term Liabilities 15,494 14,870
Deferred Income Taxes 6,188 6,730
Total Liabilities 253,667 250,270
Stockholders' Equity
Common Stock, $.01 Par Value 1,822 1,816
Additional Paid-In Capital 147,684 130,378
Cumulative Translation
Adjustment (43,150) (27,901)
Unrealized Holding Gains
on Securities 125,624 95,990
Retained Earnings 801,070 732,826
Total Stockholders'
Equity 1,033,050 933,109
Total Liab. and
Stockholders' Equity $1,286,717 $1,183,379
SOURCE: Tellabs, Inc.
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