FOR IMMEDIATE RELEASE CONTACT: Peter A. Guglielmi
04/14/99 (630) 378-6111
TELLABS BEGINS 25th YEAR WITH BEST FIRST QUARTER IN HISTORY
Lisle, Ill. - Telecommunications-equipment manufacturer Tellabs, Inc., announced
Wednesday that it began its 25th 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 operating earnings
reported in the fourth quarter of 1998.
Sales for the first quarter, ended April 2, were $469,651,000, up 43.4 percent
from $327,502,000 a year earlier.
Net income for the first quarter was $103,718,000, up 52 percent from
$68,244,000 a year earlier. Earnings per share of common stock on a diluted
basis for the first quarter were 52 cents, compared with 37 cents for the first
quarter of 1998.
"Tellabs got off to a robust start in 1999, driven primarily by continuing
strong demand across our major product lines," said Tellabs President and CEO
Michael J. Birck. "Sales of our TITAN (r) digital cross-connect system family
exceeded last year's first-quarter level by 48.9 percent, driven by strong
demand for the SONET-based TITAN 5500 and 532L systems. MartisDXX (tm) system
sales were up 21.2 percent. Echo canceller sales, following strong growth at
the end of 1998, increased 42 percent, and CABLESPAN (r) system sales grew
meaningfully, as that product continues to gain acceptance in the
marketplace."
During the quarter, Tellabs announced the newest member of its TITAN transport
family, the TITAN 4500GS global services delivery system. This platform
delivers global services over SDH and SONET networks, and was designed in
close collaboration with major global super-carriers whose networks traverse
international boundaries. The system gives carriers new flexibility and
economies for delivering services (Frame Relay, ATM, Internet, digital private
line, cable data and telephony, or video) intact between a SONET environment
such as the United States or Canada and an SDH environment like Europe, Latin
America or the rest of the world. Availability of the TITAN 4500GS system is
expected in May 1999.
"In addition to the TITAN 4500GS system and the AN2100 Gateway Exchange (tm),
introduced in late 1998, Tellabs looks forward to introducing two more major
new product platforms during 1999," Birck continued. "During the summer, we
expect to bring to field trial an optical networking system that uses DWDM
technology to address metropolitan service applications. Late in the year,
we expect to field-trial a large capacity, ATM-based, broadband transport
manager that complements our TITAN family of digital cross-connect systems."
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).
This news release contains forward-looking statements that involve risks and
uncertainties. Actual results may differ from the results discussed in the
forward-looking statements. Factors that might cause such a difference
include, but are not limited to, risks associated with introducing new
products, entering new markets, competitive response, and a downturn in the
telecommunications industry. For a more detailed description of the risk
factors, please refer to the company's SEC filings.
Tellabs, the Tellabs logo, TITAN and CABLESPAN are registered trademarks of
Tellabs Operations, Inc., in the United States and/or other countries.
AN2100 Gateway Exchange is a trademark of Tellabs Operations, Inc., in the
United States and/or other countries. MartisDXX is a trademark of Tellabs Oy
in Finland and/or in other countries.
TELLABS, INC.
Results of Operations
(Dollars in thousands, except per-share data)
(Unaudited)
Three Months Ended
04/02/99 04/03/98
-------- --------
Sales $469,651 $327,502
Cost of Goods Sold 194,010 138,346
-------- --------
Gross Profit 275,641 189,156
Operating Exp.
Mktg. & G.A. 66,452 48,474
Research & Dev. 62,112 43,306
Goodwill Amort. 1,473 1,476
-------- --------
Total Operating Exp. 130,037 93,256
Operating Profit 145,604 95,900
Other Income (Expense) - Net 8,053 5,202
-------- --------
Profit Before Tax 153,657 101,102
Taxes 49,939 32,858
-------- --------
Net Profit $103,718 $ 68,244
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Earnings per Share
Basic $ .53 $ .38
Diluted $ .52 $ .37
Average Number of Shares
of Common Stock Outstanding
Basic 195,044 181,873
Diluted 200,682 186,947
TELLABS, INC.
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
1999 1998
First Quarter Year End
------------- --------
Assets
Current Assets
Cash and investments $ 811,235 $ 642,645
Accounts receivable, less allowance 381,354 480,620
Inventories 135,105 122,424
Other current assets 8,939 7,002
---------- ----------
Total Current Assets 1,336,633 1,252,691
Property, Plant and Equipment 410,869 413,891
Less accumulated depreciation (166,850) (159,100)
---------- ----------
244,019 254,791
Goodwill 51,446 55,559
Other Assets 81,645 64,550
---------- ----------
Total Assets $1,713,743 $1,627,591
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Liabilities
Current Liabilities
Accounts payable $ 59,360 $ 63,083
Accrued liabilities 89,223 81,927
Income taxes 57,386 73,117
---------- ----------
Total Current Liabilities 205,969 218,127
Long-Term Debt 2,850 2,850
Other Long-Term Liabilities 18,856 18,164
Deferred Income Taxes 10,638 11,853
---------- ----------
Total Liabilities 238,313 250,994
Stockholders' Equity
Common Stock, $.01 Par Value 1,958 1,945
Additional Paid-In Capital 230,204 192,612
Cumulative Translation Adjustment (49,248) (9,207)
Unrealized Holding Gains on Securities 17,974 20,423
Retained Earnings 1,274,542 1,170,824
---------- ----------
Total Stockholders' Equity 1,475,430 1,376,597
---------- ----------
Total Liab. and Stockholders' Equity $1,713,743 $1,627,591
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