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Non-Tech : EARNINGS REPORTING - surprises, misses & more -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (568)	4/19/2001 6:35:54 AM
From: 2MAR$	Read Replies (1) \| Respond to of 762

TLAB ( $35 under pressure) Tellabs cuts jobs as sales weaken Move triggered by sluggish first-quarter results By Jeffry Bartash, CBS.MarketWatch.com Last Update: 5:41 PM ET Apr 18, 2001 LISLE, Ill. (CBS.MW) - Tellabs, fresh off disappointing first-quarter results, trimmed fiscal 2001 projections on Wednesday and said it would cut 550 jobs and take a charge. In the latest quarter, the company said it earned $122.5 million, or 29 cents a share, compared with $91.4 million, or 29 cents, a year ago. Sales rose 22 percent to $772.1 million. Results were in line with Wall Street estimates, but the company had cut projections twice during the quarter, citing reduced or delayed purchases by its major customers. Before the quarter started, Tellabs (TLAB: news, msgs, alerts) was projected to earn 39 cents a share on sales of up to $890 million. For the first time this year, Tellabs also ratcheted down estimates for the rest of 2001. The company now expects to earn $1.55 to $1.65 a share, excluding special items. That's down from $1.72 consensus estimate of analysts surveyed by Thomson Financial/First Call. On Wednesday, Tellabs shares fell 94 cents to $34.15. FRONT PAGE NEWS IBM reports above-par earnings Apple's back in the black In response to deteriorating sales, Tellabs said it will cut 550 jobs from its 9,200-member work force and leave 1,100 open positions unfilled. The company has already eliminated 450 temporary or contract positions this year. In addition, Tellabs said it will "close one research and development center, eliminate salary increases this year, cut executive pay, reduce plant output and cut products." The moves will result in a second-quarter charge of $150 million to $225 million, the company said. The job cuts and pay freezes should trim annual costs by 5 to 6 percent. The slowdown at Tellabs clearly indicates that even the biggest carriers such as the Baby Bells are sharply cutting back on spending. Tellabs mostly caters to established phone companies, but that hasn't shielded them entirely from the decelerating U.S. economy. "The health of our business depends on the health of our customers, and we're seeing caution from them in the current economic environment," Richard C. Notebaert, the chief executive, said last month. Jeffry Bartash is a reporter for CBS.MarketWatch