In a financial conference call earlier today, Tellabs executives said the company will restructure its business and will recognize a pretax charge, "substantially all of which is expected to be incurred in the first quarter of 2012, currently estimated at $107 million." This restructuring also includes job cuts.
The company recorded net earnings of $4 million ($0.01 per share) for 4Q11, compared with net earnings of $6 million ($0.02 per share) in 4Q10.
"In a climate of economic uncertainty, Tellabs needs to align expenses with revenue," explained President/CEO Rob Pullen. "Unfortunately, our restructuring will affect about 530 people. We will reduce expense and stop new development work on the Tellabs SmartCore 9100 LTE product, while continuing to support Tellabs SmartCore 9100 WiMax customers."
He continued,"We’ll address customers’ needs through our next-generation portfolio of products and services for the smart mobile Internet, including Tellabs Mobile Backhaul Solution, Tellabs Packet Optical Solution and professional services such as Tellabs Insight Analytics Services."