Tellabs Inc. (TLAB) reported weak financial results for the first quarter of 2013, missing the Zacks Consensus Estimate. GAAP net loss in the reported quarter was $55.9 million or a loss of 16 cents per share compared with a net loss of $139.8 million or 38 cents per share in the prior-year quarter. Quarterly adjusted (excluding special items) net loss per share of 5 cents was higher than the Zacks Consensus Estimate of a loss of 4 cents per share. First-quarter 2013 total revenue of $209.4 million was down 18.8% year over year and also below the Zacks Consensus Estimate of $212 million.
Quarterly gross margin was 34.5% compared with 37.1% in the year-ago quarter. Operating expenses, in the reported quarter, were $133.1 million compared with $232.6 million in the prior-year quarter. During the first quarter of 2013, the company repurchased 12 million shares for a total consideration of $26 million.
During the first quarter of 2013, Tellabs used $5.4 million of cash for operations compared with $37.5 million in the prior-year quarter. Free cash flow, during the reported quarter was negative $8.5 million compared with negative $42.5 million in the year-ago quarter. Tellabs exited first quarter 2013 with $571.6 million of cash and marketable securities on its balance sheet compared with $604.4 million at the end of 2012. Further, there was no outstanding debt on its balance sheet.
Optical Segment
The Optical segment revenues were $93.1 million, down 10.8% year over year. The decline was primarily driven by significantly lower sales of the Tellabs 5000 digital cross-connects systems and Tellabs 6300 managed transport systems. The segment profit was $12.8 million compared with $14.8 million in the year-ago quarter.
Data Segment
Total revenue generated by the Data segment was $32.9 million, down 52.6% year over year, hamstrung by lower sales of the Tellabs 8100 managed edge systems and the Tellabs 8800 and 8600 multiservice router series. The segment generated a loss of $14.8 million compared with a loss of $5 million in the prior-year quarter.
Access Segment
Total revenue of the Access segment was $39 million, up 8.6% year over year. The rise in revenues was attributed to higher sales of Tellabs1600 single-family optical network terminals and the Tellabs 1000 access systems. The segment’s profit surged to $8.2 million, from $6.4 million recorded in the prior-year quarter.
Services Segment
Total revenue of the Service segment was $44.4 million, down 7.9% year over year, hurt by lower revenues generated from the deployment services and support systems. The segment profit fell to $14.6 million from $15.2 million in the prior-year quarter.