Though many telecom equipment names have performed well lately thanks to good earnings reports...
Feb 1 2013, 16:17 ET
Though many telecom equipment names have performed well lately thanks to good earnings reports and capex optimism, Tellabs (TLAB -7.7%) made new multi-year lows thanks to mixed Q4 results and guidance for Q1 revenue of $205M-$220M, below a $241.6M consensus. Gross margin is expected to fall to ~34% from Q4's 42.2%. Tellabs has been steadily losing share, and has also seen a CEO transition. The Data segment (switches/routers) saw a 48% Y/Y sales drop - in response, Tellabs says it's discontinuing its 9200 edge router, and will cut 300 jobs as a result. (transcript)