Telephony University

Telephony University

Join us for an in-depth day on Deep Packet Inspection. Telephony University presents three Webcasts and an interactive panel of experts to explore all things DPI. You’ll hear from the industry professionals leading the way and participate in Q+A with our experts.

Learn more
         Subscribe in NewsGator Online   Subscribe in Bloglines     

Tellabs seeks ‘pockets of optimism’ overseas

more on the topic

More Related Articles

Tellabs vowed to push harder into overseas markets Tuesday as weakness in North America weighed on its second-quarter results.

The equipment vendor reported $432.5 million in second quarter revenue -- down nearly 7% sequentially and down 19% from a year earlier. It also predicted revenue would be sequentially flat or down in the third quarter, which is typically a weak one for the company.

“We continue to see, like the rest of the world, some tough macroeconomic situations and industry sector problems,” said Rob Pullen, Tellabs’ chief executive officer.“But we also see pockets of optimism.”

The company aims to drive harder in markets outside North America, where 66% of its second-quarter revenue came from (in the first quarter, that number was 75%). The company has emphasized that strategy repeatedly since Pullen was named CEO in February.

“We’re too leveraged in North America,” Pullen said on a conference call today. “We’ll continue to focus on North America, don’t get me wrong. But we’ll spend a lot of our time addressing products and services for the global segment, North America included.”

The company’s second-quarter results were aided by two new customers for its 7100 reconfigurable optical add/drop multiplexer (ROADM): one in South Africa and the other in Puerto Rico. And a drop in spending among North American wireless carriers on Tellabs’ legacy 5500 transport gear weighed on the vendor’s top line, bringing transport segment revenue down by $65 million (or 31% of the segment) sequentially in the quarter.

“The North American macroeconomic [environment] is tough,” Pullen said. “Spending in wireless has been slightly down.”

However, the international market is also mixed, Pullen said when asked to gauge the sentiment of his carrier customers related to spending.

“As we talk to customers, they’re uncertain [about spending] themselves,” he said. “They [indicate spending growth to be] flat to single digits. That’s, by the way, over wireless and wireline. They’re suffering from the macroeconomic [environment], the real estate market and so on. Housing starts affect the consumer broadband access business, as an example. We’re seeing tightening of the belt on business customers. In Europe we see a little softness. But on the other hand, we see up tics in the world. In Eastern Europe, India and Malaysia, to name a few, there’s some positive side. We’re trying to take an educated forecast of those up and down vectors in the industry and around the world.”


Commenting terms of use blog comments powered by Disqus
Get Updates Via Email

related resources

popular articles

Want to use this article? Click here for options!
© 2008 Penton Media Inc.

White Papers

WHITE PAPER

Are You Letting Hot Prospects Go to the Competition?

You spend millions of dollars on marketing campaigns to trigger consumer interest in your services. Find out how some communications carriers are increasing conversion rates. DOWNLOAD NOW

Podcasts

PODCAST

A Telephony Podcast: Qwest Communications launched its qHome Portal

Qwest Communications launched its qHome Portal this week, uniting its Qwest Choice Home voice service and its DSL-based high-speed Internet service through Microsoft’s Windows Live LISTEN

Blogs

BLOG

Infinera: What spending slowdown?

Optical equipment vendor Infinera is apparently not seeing the same broad carrier spending slowdown related to economic uncertainty that other vendors are reporting.READ

E-Books

E-BOOK

Broadband for the Masses from Motorola

This e-book provides insights on how fixed broadband wireless services can provide affordable solutions in an unlicensed spectrum. READ NOW!

TV

TV

Interview with Jim Hansen of Embarq at NXTcomm08

Tune in to Telephony TV to watch an interview with Embarq's Jim Hansen at NXTcomm08. WATCH IT NOW.

  • Telephony Content
  • Telephony Content

current issue

Current Issue

December 1, 2008

The next network frontier offers new opportunities for service providers. Read Now

more news

Global >>

MORE

Ethernet >>

MORE

Independent >>

MORE

IPTV >>

MORE

IMS >>

MORE

WiMax >>

MORE

VOIP >>

MORE

FTTX >>

MORE

Access >>

MORE

Broadband >>

MORE

Wireless >>

MORE

Software >>

MORE

Podcasts >>

MORE

Get Updates Via Email

Browse Issues

  • December 1, 2008
  • November 1, 2008
  • October 1, 2008
  • September 1, 2008
  • July 14, 2008
  • June 30, 2008
  • Jun 16, 2008