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To: Tiley who wrote (18428)	11/18/1998 1:01:00 PM
From: Clint E.	Respond to of 67946

Manish. After I bought it yesterday I came across this news that was released after the close on Monday night. The stock is still responding to this news. Clint -------------- Monday November 16, 8:21 pm Eastern Time Tellabs int'l revenues hurt by global turmoil NEW YORK, Nov 16 (Reuters) - Telecommunications equipment maker Tellabs Inc. (Nasdaq:TLAB - news) said its goal to have revenues from its international business be half of its total revenues has been slowed by the global economic turmoil, Tellabs Chief Executive Michael Birck said Monday. That goal ''is a little tough to do when major segments of the world's economy are in major disarray,'' Birck told investors at the Warburg Dillon Read Telecom Conference. International revenues currently contribute about 30 percent of the company's revenues, but that is expected to improve over time, Birck said. Birck said Tellabs' growth in Asia is about flat and it had previously been expecting to see stronger growth in that region. Tellabs' gross margins were 64 percent during the third quarter, but margin levels may decrease three or four percentage points in 1999 as the company adjusts certain accounting techniques, Birck said. The accounting change will not affect the company's bottom line, he said. Separately, Tellabs said it plans to introduce four major new products in the next several months, including one that moves the company into optical networking. Tellabs said the optical networking product will be unveiled soon and will have trials during the second half of 1999. ''Optical networking is an area we know we have to be in and we've been working in this area'' in research and development, Birck said. Tellabs' ill-fated merger will Ciena Corp. would have helped it to move more aggressively into optical networking, but Tellabs still plans to push ahead into that area even after the Ciena deal dissolved, he said. Tellabs also will announce a ''next generation network'' product later this week, he said. He declined to provide additional details. Shares of Tellabs gained 3/4 to 57-3/8 on Monday.