NEWS RELEASE EXHIBIT 19.2
FOR IMMEDIATE RELEASE CONTACT: Peter A. Guglielmi
04/20/98 (630) 378-6111
TELLABS BEGINS 24th YEAR WITH BEST FIRST QUARTER IN HISTORY
Lisle, Ill. - Telecommunications-equipment manufacturer Tellabs, Inc.,
announced Monday that it began its 24th year of operation with the
highest sales and earnings for any first quarter in company history. It
was the company's second-best quarter, exceeded only by the all-time
record sales and earnings reported in the fourth quarter of 1997.
Sales for the first quarter, ended April 3, were $327,502,000, up 32.5
percent from $247,123,000 a year earlier.
Net income for the first quarter was $68,244,000, up 8.2 percent from
$63,087,000 a year earlier when operating results included a pre-tax
gain of $20,803,000 ($13,855,000 or 7 cents per diluted share, after
tax) on the sale of stock held as an investment. Excluding the effect
of the stock-sale gain, net income for the first quarter of 1998 was
38.6 percent greater than the level recorded in the first quarter of
1997.
Earnings per share of common stock on a diluted basis for the first
quarter were 37 cents, compared with 34 cents (or 27 cents excluding the
stock-sale gain) for the first quarter of 1997.
"1998 began with continued strong performance across Tellabs' three
major product lines," said Tellabs President and CEO Michael J. Birck.
"Sales of our SONET-based TITAN (a registered trademark of Tellabs
Operations, Inc.) 5500 digital cross-connect system exceeded last year's
first-quarter level by 40 percent. MartisDXX (a registered Finnish
trademark of Tellabs Oy) system sales were up 26 percent, and echo
canceller sales were up 66 percent.
"Tellabs has an aggressive schedule in 1998 for launching new products,
including major enhancements to its TITAN 5500 and MartisDXX systems,"
Birck continued. "In addition, we continue to make good progress in the
development of new ATM-based products that will be introduced in the
latter half of this year."
In February, Tellabs and Coherent Communications Systems Corporation
announced a definitive merger agreement under which Coherent would
become a wholly owned subsidiary of Tellabs. In March, Tellabs
announced that it will supply its SONET-based TITAN 5500 digital
cross-connect systems to Bell Atlantic under the terms of a new
five-year agreement under which Tellabs was selected as the sole
supplier of wideband digital cross-connects to Bell Atlantic. Tellabs
also announced during the quarter that Telefonos de Mexico (Telmex)
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selected the MartisDXX system for a new digital leased line network and
that Datakom Austria will use the MartisDXX system in a nationwide voice
and data network.
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, Inc., stock is
listed on the Nasdaq Stock Market (TLAB).
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TELLABS, INC.
RESULTS OF OPERATIONS
(Dollars in thousands, except per-share data)
(Unaudited)
Three Months Ended
04/03/98 03/28/97
--------- -----------
Net Sales $327,502 $247,123
Cost of Goods Sold 120,219 95,420
--------- -----------
Gross Profit 207,283 151,703
Operating Exp.
Mktg. & G.A. 66,601 45,574
Research & Dev. 43,306 33,236
Goodwill Amort. 1,476 1,506
--------- -----------
Total Oper. Exp. 111,383 80,316
Oper. Profit 95,900 71,387
Other Income(Expense) - Net 5,202 23,338
--------- -----------
Profit Before Tax 101,102 94,725
Income Taxes 32,858 31,638
--------- -----------
Net Profit $68,244 $63,087
========= ===========
Earnings per Share
- Basic $0.38 $0.35
========= ===========
- Diluted $0.37 $0.34
========= ===========
Average Number of Shares
of Common Stock Outstanding
- Basic 181,873 180,125
- Diluted 186,947 185,711
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TELLABS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
(Unaudited)
1998 1997
1st Qtr. Year End
Assets ----------- -----------
Current Assets
Cash and investments $600,486 $487,034
Accounts receivable, less allowance 259,595 284,084
Inventories 94,467 89,614
Other current assets 1,376 2,202
----------- -----------
Total Current Assets 955,924 862,934
Property, Plant, and Equipment 352,108 338,296
Less accumulated depreciation (134,170) (128,967)
----------- -----------
217,938 209,329
Goodwill 58,482 61,453
Other Assets 54,373 49,663
----------- -----------
Total Assets $1,286,717 $1,183,379
=========== ===========
Liabilities
Current Liabilities
Accounts payable $48,098 $50,422
Accrued liabilities 123,620 115,917
Income taxes 57,417 59,481
----------- -----------
Total Current Liabilities 229,135 225,820
Long-Term Debt 2,850 2,850
Other Long-Term Liabilities 15,494 14,870
Deferred Income Taxes 6,188 6,730
----------- -----------
Total Liabilities 253,667 250,270
Stockholders' Equity
Common Stock, $.01 Par Value 1,822 1,816
Additional Paid-In Capital 147,684 130,378
Cumulative Translation Adjustment (43,150) (27,901)
Unrealized Holding Gains on Securities 125,624 95,990
Retained Earnings 801,070 732,826
----------- -----------
Total Stockholders' Equity 1,033,050 933,109
----------- -----------
Total Liabilities &
Stockholders' Equity $1,286,717 $1,183,379
=========== ===========
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