FOR IMMEDIATE RELEASE
1/25/99
CONTACT: Peter Guglielmi
(630) 378-6111
TELLABS ANNUAL REVENUE EXCEEDS $1.6 BILLION
Fourth-Quarter Earnings Up 59 Percent On 47 Percent Increase In Quarterly
Sales
Lisle, Ill. -- Telecommunications equipment manufacturer Tellabs, Inc.,
announced Monday record sales and earnings for both the fourth quarter of 1998
and the year ended January 1.
Sales for the fourth quarter of 1998 were $521,333,000, higher than any previous
quarter in company history and up 47.1 percent from sales of $354,314,000 for
the similar period in 1997. This marks the 30th consecutive quarter in which
Tellabs' sales surpassed prior-year levels. Sales during 1998 were $1,660,102,000,
up 37.9 percent compared with sales of $1,203,546,000 in 1997.
Net income for the fourth quarter of 1998 was $123,279,000, higher than any
previous quarter in the company's history and up 59 percent from $77,534,000 a
year earlier.
Net income for 1998 was $398,328,000 (including a pre-tax gain of $73,374,000
taken in the second quarter on the sale of stock held as an investment, a pre-tax
write-off of $24,793,000 taken in the second quarter on assets that were
determined to be impaired, and a pre-tax charge of approximately $12,991,000
taken during the third quarter in connection with the successful merger with
Coherent Communications and the terminated merger with CIENA). This
compares to net income of $263,689,000 in 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
1998 was 49.8 percent greater than the level recorded in 1997.
Diluted earnings per share of common stock for the fourth quarter of 1998 were
62 cents, compared with 42 cents a year earlier. For 1998, earnings per share
were $2.07 (or $1.95 excluding the year-to-date effect of the stock gain, write-off
and the charge), compared with $1.42 (or $1.35 excluding the stock gain) in 1997.
"Strong revenue growth in 1998 was driven largely but not exclusively by our two
flagship products," said Tellabs President and CEO Michael J. Birck. "While sales
of the TITAN® 5500 digital cross-connect system increased 38 percent over 1997
and MartisDXXTM system sales were up 36 percent, revenue from other product
areas also increased significantly. Sales of our narrowband TITAN digital
cross-connect systems grew 28 percent, echo canceller sales, augmented by the
August merger with Coherent Communications, increased 76 percent, and our
CABLESPAN® product showed a 53 percent sales increase over 1997."
Late in the quarter, Tellabs announced that it would supply its AN2100 Gateway
ExchangeTM system, a next-generation voice/data switch, to Sprint under the
terms of a new, multi-year agreement valued at more than $100 million. Blending
Tellabs' echo canceller and TITAN 5500 digital cross-connect technology with
packet and cell technologies to perform multimedia adaptation and switching, the
new AN2100 system will allow Sprint to place traditional, switched telephone
services on its core ATM backbone, while consolidating or eliminating legacy
TDM network switching elements.
"We expect to introduce major new products in optical networking, ATM
transport and switching, and in combined voice and data access during 1999,"
Birck continued. "These initiatives represent good entrees to the future."
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 stock is listed on the Nasdaq Stock Market
(TLAB).
Tellabs, the Tellabs logo, TITAN and CABLESPAN are registered U.S.
trademarks of Tellabs Operations, Inc., in the United States and/or other
countries. MartisDXX is a trademark of Tellabs Oy. AN2100 Gateway Exchange
is a trademark of Tellabs Operations, Inc., in the United States and/or other
countries.
DAVE DICKERSON |
