FOR IMMEDIATE RELEASE
10/15/98 CONTACT: Tom Scottino
(630) 378-7504
tom.scottino@tellabs.com
TELLABS REPORTS BEST QUARTER IN COMPANY HISTORY
Sales and Operating Earnings Set Record Levels
Lisle, Ill. -- Telecommunications equipment manufacturer Tellabs, Inc., announced Thursday record sales and earnings for the third quarter of 1998.
Sales for the third quarter, ended October 2, were $423,548,000, the highest for any quarter in the company's history and up 36.9 percent from sales of $309,408,000 in the third quarter of 1997. This marks the 29th consecutive quarter in which Tellabs' sales surpassed prior-year levels. Sales for the first nine months of 1998 were $1,138,769,000, up 34.1 percent from sales of $849,232,000 a year earlier.
Net income for the third quarter was $87,763,000, up 36.5 percent from net income of $64,307,000 a year earlier. Included in 1998 operating results is a pre-tax charge of approximately $12,991,000 taken in connection with the merger with Coherent Communications Systems Corporation that was completed on August 3 and the terminated merger with CIENA Corporation. Excluding the effect of the charge, net income for the third quarter of 1998 was 50.1 percent greater than the level recorded in the comparable period of 1997.
Net income for the first nine months of 1998 (which includes the charge described above, a pre-tax gain of $73,374,000 taken in the second quarter on the sale of stock held as an investment and a pre-tax write-off of $24,793,000 taken in the second quarter on assets that were determined to be impaired) was $275,049,000. This compares to net income of $186,155,000 during the first nine months of 1997 (when results were affected by a pre-tax gain of $20,803,000 on the sale of stock held as an investment). Excluding the effects of the various gains, write-offs and charges, net income for the first nine months of 1998 was 45.7 percent greater than the level recorded in the comparable period of 1997.
Diluted earnings per share of common stock for the third quarter of 1998 were 45 cents (or 49 cents excluding the charge) compared with 34 cents a year earlier. For the first nine months of 1998, earnings per share were $1.45 (or $1.32 excluding the effect of the stock gain, write-off and the charge), compared with $1.00 (or 93 cents excluding the stock gain) a year earlier.
"Third quarter results, again driven primarily by Tellabs' flagship products, were strong," said Tellabs President and CEO Michael J. Birck. "Sales of the SONET-based TITAN® 5500 digital cross connect system were up 34 percent compared with the year-earlier quarter. MartisDXX™ sales were up about 29 percent. Echo canceller sales increased 153%, reflecting strong sales of Tellabs' products plus the addition of Coherent's echo canceller products."
On August 3, Tellabs completed its merger with Coherent Communications Systems Corporation. The company plans to launch several new call-quality products in the near future and to explore new product development activities as it addresses the need for next-generation solutions. On September 14, Tellabs and CIENA Corporation announced the mutual termination of the merger agreement announced on June 3.
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).
Tellabs, the Tellabs logo and TITAN are registered U.S. trademarks of Tellabs Operations, Inc., in the United States and/or other countries. MartisDXX is a trademark of Tellabs Oy.
------------------------------------------------------------------------
Replay of Analyst Teleconference
Beginning at approximately 9:30 a.m., Chicago time, Friday, 10/16/98, interested investors will be able to listen to a pre-recorded replay of Tellabs' analyst teleconference. This replay will be available for 48 hours. To listen to the pre-recorded teleconference: Call toll-free 1-800-633-8284. When prompted, enter the Tellabs reservation number 1627780. For more information: Call Tom Scottino at (630) 378-7504 or tom.scottino@tellabs.comFOR IMMEDIATE RELEASE
10/15/98 CONTACT: Tom Scottino
(630) 378-7504
tom.scottino@tellabs.com
|
