tellabs.com
FOR IMMEDIATE RELEASE
7/19/99 CONTACT: Peter A. Guglielmi
(630) 378-6111
Peter.Guglielmi@tellabs.com
TELLABS REPORTS RECORD SALES AND EARNINGS
FOR SECOND QUARTER AND FIRST HALF OF 1999
Lisle, Ill. -- Tellabs, Inc., announced Monday record sales and earnings for the second quarter and the first half of 1999.
Sales for the second quarter ended July 2 were $540,400,000, up 39.4 percent over sales of $387,719,000 a year earlier. This marks the 32nd consecutive quarter in which Tellabs' sales surpassed prior-year levels. Sales for the first six months of the year were $1,010,051,000, up 41.2 percent compared with sales of $715,221,000 a year earlier.
Net income for the second quarter was $127,772,000 compared with $119,042,000 a year earlier (when results included a pre-tax gain of $73,374,000 on the sale of stock held as an investment and a pre-tax write-off of $24,793,000 on assets that were determined to be impaired). Excluding the effect of the 1998 second-quarter gain and charge, earnings increased 48.1 percent over those recorded in the second quarter of last year.
Net income for the first six months of 1999 was $231,490,000 compared with $187,286,000 a year earlier. Excluding the effect of the 1998 gain and charge, net income for the first half of 1999 was 49.8 percent greater than the level recorded in the first half of 1998.
Diluted earnings per share of common stock for the second quarter of 1999 were 32 cents compared with 32 cents (or 23 cents excluding the effect of the stock sale and write-off) for the second quarter of 1998. For the first six months of 1999, diluted earnings per share were 58 cents compared with 50 cents (or 41 cents excluding the effect of the stock sale and write-off). (All earnings-per-share amounts have been adjusted to reflect the effect of the two-for-one stock split that occurred on May 18, 1999.)
"This is clearly a quarter where sales growth was driven by the TITAN® digital cross-connect system family, " said Tellabs President and CEO Michael J. Birck. "Continuing strong demand for the SONET-based TITAN 5500 and 532L systems resulted in a 28.6 percent increase over last year's extremely robust second-quarter level. While MartisDXX™ system sales did not meet expectations for the quarter, we continue to project relatively strong sequential growth for this product throughout the rest of the year. Echo canceller sales, reflecting in part the success of our merger with Coherent Systems Corporation last August, grew robustly when compared to both the second quarter of 1998 and the first quarter of this year. CABLESPAN® system sales increased significantly, albeit from a rather modest level in last year's second quarter, as that product area continues to gain customer acceptance."
During the quarter, Tellabs announced that it will acquire Alcatel's DSC Communications businesses in Europe, in an all-cash transaction valued at about $110 million, and Wilmington, Mass.-based NetCore Systems, Inc., in an all-stock transaction valued at about $575 million. The European businesses are leading providers of managed, high-speed transport solutions based on international-standard Synchronous Digital Hierarchy (SDH) optical and multiplexing technologies. NetCore is a leading developer of innovative carrier-class IP routing and ATM switching solutions for the new public network. These acquisitions are intended to extend Tellabs' existing product offerings and allow the company to speed to market complementary technologies. The company expects both acquisitions to close during the third calendar quarter of 1999.
Tellabs designs, manufactures, markets and services voice and data transport and network access systems. The company's products are used worldwide by the providers of communications services. Tellabs stock is listed on the NASDAQ stock market (TLAB).
Tellabs, the Tellabs logo, TITAN and CABLESPAN are registered trademarks of Tellabs Operations, Inc., in the United States and/or other countries. MartisDXX is a trademark of Tellabs Oy. |
