TELLABS EXCEEDS $2 BILLION ANNUAL REVENUE GOAL
Fourth-Quarter Core Earnings Up 39 Percent On 37 Percent Increase In Quarterly Sales
Lisle, Ill. -- Telecommunications equipment manufacturer Tellabs, Inc., announced Tuesday record sales and earnings for both the fourth quarter of 1999 and the year ended December 31.
Sales for the fourth quarter of 1999 were $714,942,000, higher than any previous quarter in company history and up 37.1 percent from sales of $521,333,000 for the similar period in 1998. This marks the 34th consecutive quarter in which Tellabs' sales surpassed prior-year levels. Sales during 1999 were $2,319,498,000, exceeding the company goal set in 1995 of achieving $2 billion in annual revenue by the end of 2000 and up 36.1 percent compared with sales of $1,704,210,000 in 1998.
Net income for the fourth quarter of 1999 (including a pre-tax gain of approximately $29,941,000 on the sale of stock held as an investment) was $188,654,000, up 55.9 percent from $121,017,000 a year earlier. Excluding the effect of the 1999 gain, earnings for the fourth quarter of 1999 increased 38.9 percent over those recorded in the same period last year.
Net income for 1999 (including the fourth-quarter gain described above, a third-quarter pre-tax gain of approximately $6,934,000 on the sale of stock held as an investment and a charge taken in connection with the acquisition of NetCore Systems, Inc.) was $559,120,000. This compares to net income of $396,120,000 during 1998 (when results included a pre-tax charge of approximately $12,991,000 taken in connection with the merger with Coherent Communications Systems Corporation and the terminated merger with CIENA Corporation, a pre-tax gain of $73,374,000 taken on the sale of stock held as an investment, and a pre-tax write-off of $24,793,000 taken on impaired assets). Excluding the effects of the various charges, gains and write-offs, net income for 1999 was 43.8 percent greater than the level recorded in 1998.
Diluted earnings per share of common stock for the fourth quarter of 1999 were 46 cents (or 41 cents excluding the gain) compared with 30 cents a year earlier. For 1999, earnings per share were $1.36, compared with 98 cents. Excluding all gains, charges and write-offs, diluted earnings per share for 1999 were $1.30, compared to 92 cents in 1998.
"Sales growth during 1999 was again driven primarily by the TITAN© digital cross-connect family, which grew at an annual rate of 43.6 percent, well ahead of even our expectations," said Tellabs President and CEO Michael J. Birck. "It was also the year in which our CABLESPAN© system and Customer Services activities each became significant parts of the revenue picture. The managed digital networks product family should show improvement in 2000 as MartisDXX© sales, essentially flat in 1999, benefit from integration of the FOCUS? products acquired last year. I suspect the year 2000, with the much-anticipated delivery of the TITAN 6500 and 6100 platforms, the AN2100© GX system and the Everest? switch, will be the lynchpin in our efforts toward achieving our stretch objective of $6 billion in annual revenue by the end of 2003."
Late in the quarter, Tellabs announced that it would acquire privately held SALIX Technologies. Inc., of Gaithersburg, Md., in an all-stock transaction valued at about $300 million. SALIX develops class-independent switching solutions that enable next-generation, converged services such as voice over ATM (VoATM), voice over IP (VoIP) and Internet access over any network infrastructure. Tellabs expects the acquisition to close before the end of the first calendar quarter of 2000.
Tellabs designs, manufactures, markets and services data, voice and video transport, switching/routing 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).
This news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ from the results discussed in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, risks associated with introducing new products, entering new markets, competitive response, and a downturn in the telecommunications industry. For a more detailed description of the risk factors, please refer to the company's SEC filings. |
