Key Developments For Tellabs, Inc.
Tellabs, Inc. (TLAB.O) (Nasdaq)
Tellabs, Inc. Issues Q4 2009 Revenue Guidance In Line With Analysts' Estimates
Tellabs, Inc. announced that for fourth quarter of 2009, it expects revenue to be flat, plus or minus 3% compared with the third quarter of 2009. The Company reported revenues of $389 million in third quarter of 2009. According to Reuters Estimates, analysts are expecting the Company to report revenues of $398 million for the fourth quarter of 2009.
Tellabs, Inc. Acquires WiChorus
Tellabs, Inc. announced that it will acquire WiChorus of San Jose, Calif. The acquisition adds WiChorus' SmartCore mobile packet core platform. Under the terms of the transaction, which was approved by both companies' Boards of Directors, Tellabs, Inc. will pay approximately $165 million in net cash for WiChorus. Prior to close, Tellabs, Inc. and WiChorus will continue to operate as separate companies. The combined company will employ about 3,250 people. The transaction is expected to close within the next several months.
Tellabs, Inc. To Support U.S. Army Base Modernization
Tellabs, Inc. announced that General Dynamics, a prime contractor for the U.S. Army's Infrastructure Modernization (IMOD) program, selected Tellabs Government Systems to deliver a secure, optical transport network between Army bases in Texas and New Mexico. A key goal of IMOD is the upgrade and expansion of telecommunications networks to improve voice and data services. As part of the Army's Installation Information Infrastructure Modernization Program (I3MP), General Dynamics will deploy the Tellabs 7100 Optical Transport System between White Sands Missile Range and the Fort Bliss Range Complex.
Tellabs, Inc. Intends To Repurchase Up To $200 Million In Common Shares
Tellabs, Inc. announced that it intends to actively repurchase its common stock under an existing Board of Directors authorization, previously announced on November 8, 2007. Over the next four quarters, the company may repurchase up to $200 million (about 8.6% of shares at the August 10, 2009, closing price) under the previously announced repurchase program. The resumption follows the Company' significant curtailment of stock repurchases since the fourth quarter of 2008, as the company evaluated uses of cash. The Company plans to use part of its more than $1.2 billion in cash, cash equivalents and marketable securities for the program. The Company has no debt. The Company gives no assurance as to the amount of repurchases to be made or the actual purchase prices.
Tellabs, Inc. Issues Q3 2009 Revenue Guidance Above Analysts' Estimates
Tellabs, Inc. announced that for the third quarter of 2009, it expects revenue to be flat to up by a mid-single-digit percentage compared to the second quarter of 2009. The Company reported revenues of $385 million for the second quarter of 2009. According to Reuters Estimates, analysts are expecting the Company to report revenues of $380 million for the third quarter of 2009.
