Tellabs Shares Rise Amid Optimism for Stronger Equipment Sales
Bloomberg News
January 5, 1999, 1:10 p.m. PT
Lisle, Illinois, Jan. 5 (Bloomberg) -- Tellabs Inc. shares surged 20 percent amid optimism that the phone-equipment maker has refocused on its business after its aborted takeover of Ciena Corp. and will report strong fourth-quarter sales growth.
Tellabs, based in Lisle, Illinois, rose 13 1/16 to 78 13/16 in trading of 10.9 million.
Tellabs, which makes equipment used by local phone companies to process voice calls, agreed to buy Ciena last year, yet canceled the purchase after Ciena lost some big customers. Since then, Tellabs has won significant contracts and regained investor confidence.
"People are confident that the quarter is tracking according to plan," said James Parmelee, an analyst at CS First Boston, who rates Tellabs "strong buy."
Parmelee expects the company to report quarterly revenue of about $495 million, about 25 percent higher than last year on a pro forma basis. |
