Tellabs - Company Report

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Company Reports are concise reports that provide a review of the company's activities, corporate strategy and recent developments.
Published: April 2007
Pages: 24

Tellabs designs, develops, deploys, and supports telecommunications networking products around the world. The product portfolio includes solutions for wireline and wireless transport, access networking, broadband data, optical transport, and voice quality enhancements. The company generates revenue principally through the sale of telecommunications products, both as stand-alone products and as elements of integrated systems. In addition, the company provides installation and professional services related primarily to its own products and systems. Its customers are predominantly in the US and include the regional Bell operating companies, cable operators, competitive local exchange carriers and original equipment manufacturers.

Prior to 2006, Tellabs reported its results of operations based on the company operating in a single segment. Beginning with the first quarter of 2006, the company reported operating results in three segments: Broadband Products, Transport Products, and Services. In 2003, nearly half of the company’s revenues derived from its Transport segment, but from 2006 its portfolio has broadened to technology solutions in all three segments.

Tellabs Inc was established initially as an Illinois corporation in 1975 and later in 1992 was converted into a Delaware corporation. Over the years, Tellabs has expanded through acquisitions, including the takeover of Ocular Networks Inc in 2002, Vivace Networks Inc in 2003, and Advanced Fibre Communications Inc (AFC) and Vinci Systems in 2004.

Tellabs' common stock is listed on the NASDAQ National Market under the symbol TLAB. At February 16, 2007, there were approximately 7,678 stockholders of record and 437,321,051 outstanding shares. The top shareholders were: Columbia Wanger Asset Management L.P (7.3% of outstanding shares); Lord Abbett & Co. LLC (5.6); Oak Street Investments LP (4.2%; Birck (Michael J) (3.8%); Barclays Global Investors NA (3.7%); Vanguard Group Inc (3.%); State Street Global Advisors (US) (3.%); Third Avenue Management LLC (2.4%); Templeton Investment Counsel LLC (1.8%); and, BlackRock Investment Management LLC (1.8%).