TELLABS INC

CIK:0000317771|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data, unless otherwise specified

3 Months Ended

9 Months Ended

Sep. 27, 2013

Sep. 28, 2012

Sep. 27, 2013

Sep. 28, 2012

Revenue

Products

$ 153.2

$ 216.5

$ 486.1

$ 663.6

Services

45.3

47.9

133.9

146.8

Total revenue

198.5

264.4

620.0

810.4

Cost of Revenue

Products

95.7

128.1

304.9

396.8

Services

29.0

32.7

88.8

100.1

Total cost of revenue

124.7

160.8

393.7

496.9

Gross Profit

73.8

103.6

226.3

313.5

Gross profit as a percentage of revenue

37.20%

39.20%

36.50%

38.70%

Gross profit as a percentage of revenue - products

37.50%

40.80%

37.30%

40.20%

Gross profit as a percentage of revenue - services

36.00%

31.70%

33.70%

31.80%

Operating Expenses

Research and development

40.0

53.7

134.6

179.4

Sales and marketing

21.7

29.7

71.9

98.3

General and administrative

17.1

17.9

52.4

58.7

Intangible asset amortization

1.1

3.2

4.3

Restructuring and other charges

0.1

3.3

35.3

110.2

Total operating expenses

80.0

105.7

297.4

450.9

Operating (Loss) Earnings

(6.2)

(2.1)

(71.1)

(137.4)

Operating (loss) earnings as a percentage of revenue

(3.10%)

(0.80%)

(11.50%)

(17.00%)

Other Income

Interest income, net

0.6

2.1

1.8

5.5

Other expense, net

(1.3)

(0.2)

(1.3)

(2.3)

Total other (expense) income

(0.7)

1.9

0.5

3.2

(Loss) Earnings Before Income Tax

(6.9)

(0.2)

(70.6)

(134.2)

Income tax expense

(2.9)

(3.7)

(2.9)

(14.2)

Net Loss

$ (9.8)

$ (3.9)

$ (73.5)

$ (148.4)

Weighted Average Shares Outstanding

Basic

355.7

367.7

357.1

366.8

Diluted

355.7

367.7

357.1

366.8

Net Loss Per Share

Basic

$ (0.03)

$ (0.01)

$ (0.21)

$ (0.40)

Diluted

$ (0.03)

^[1]

$ (0.01)

^[1]

$ (0.21)

^[1]

$ (0.40)

^[1]

Cash Dividends Per Share

$ 0.02

$ 0.06

[1]

Dilutive securities are not included in the computation of diluted earnings per share when a company is in a loss position. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for the third quarter and first nine months of 2013 and the third quarter and first nine months of 2012 are the same. Diluted weighted average shares outstanding were 356.2 million in the third quarter of 2013, 358.2 million in the first nine months of 2013, and 368.2 million in the third quarter of 2012 and 368.6 million in the first nine months of 2012.

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 27, 2013	Sep. 28, 2012
Operating Activities
Net loss	$ (73.5)	$ (148.4)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	29.2	38.2
Loss on disposal of property, plant and equipment	0.5	1.1
Equity-based compensation	6.8	15.8
Deferred income taxes	(3.7)	0.3
Restructuring and other charges	35.3	110.2
Net gain on investments in marketable securities	(0.8)	(0.8)
Net changes in assets and liabilities:
Accounts receivable	53.2	31.4
Inventories	(16.6)	41.2
Miscellaneous receivables and other current assets	9.8	14.8
Other assets	(1.0)	(0.4)
Accounts payable	(2.1)	(38.5)
Restructuring and other charges	(30.8)	(31.2)
Deferred revenue	1.2	(18.9)
Other accrued liabilities	(18.4)	(4.2)
Income taxes	1.9	(2.9)
Other long-term liabilities	1.4	(3.2)
Net Cash (Used for) Provided by Operating Activities	(7.6)	4.5
Investing Activities
Capital expenditures	(13.0)	(16.8)
Disposals of property, plant and equipment	0.2
Payments for purchases of investments	(241.9)	(401.6)
Proceeds from sales and maturities of investments	388.7	442.9
Net Cash Provided by Investing Activities	134.0	24.5
Financing Activities
Proceeds from issuance of common stock under stock plans		0.1
Repurchase of common stock	(31.9)	(3.7)
Dividends paid		(22.0)
Net Cash Used for Financing Activities	(31.9)	(25.6)
Effect of Exchange Rate Changes on Cash	(1.7)	(1.2)
Net Increase in Cash and Cash Equivalents	92.8	2.2
Cash and Cash Equivalents - Beginning of Year	223.7	132.7
Cash and Cash Equivalents - End of Period	$ 316.5	$ 134.9

CONSOLIDATED BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Sep. 27, 2013	Dec. 28, 2012
Current Assets
Cash and cash equivalents	$ 316.5	$ 223.7
Investments in marketable securities	234.6	380.7
Total cash, cash equivalents and marketable securities	551.1	604.4
Other marketable securities	234.0	195.1
Accounts receivable, net of allowances of $1.0 and $1.0	187.1	246.8
Inventories
Raw materials	30.1	30.2
Finished goods	86.2	70.8
Total inventories	116.3	101.0
Income taxes	10.8	7.3
Miscellaneous receivables and other current assets	22.6	35.1
Total Current Assets	1,121.9	1,189.7
Property, Plant and Equipment
Land	20.2	20.1
Buildings and improvements	188.7	193.5
Equipment	383.0	406.4
Total property, plant and equipment	591.9	620.0
Accumulated depreciation	(390.4)	(389.6)
Property, plant and equipment, net	201.5	230.4
Goodwill	122.2	122.1
Intangible Assets, Net of Amortization	1.2	4.4
Other Assets	71.8	91.5
Total Assets	1,518.6	1,638.1
Current Liabilities
Accounts payable	54.8	57.4
Accrued compensation	29.9	37.7
Restructuring and other charges	9.6	19.1
Income taxes	42.7	61.5
Loan related to other marketable securities	234.0	195.1
Deferred revenue	21.4	20.3
Other accrued liabilities	66.7	78.5
Total Current Liabilities	459.1	469.6
Long-Term Restructuring Liabilities	1.1	2.8
Income Taxes	21.4	21.9
Other Long-Term Liabilities	41.6	42.5
Stockholders' Equity
Preferred stock: authorized 5,000,000 shares of $0.01 par value; no shares issued and outstanding
Common stock: authorized 1,000,000,000 shares of $0.01 par value; 511,538,057 and 508,846,484 shares issued	5.1	5.1
Additional paid-in capital	1,599.1	1,592.2
Treasury stock, at cost: 155,815,832 and 141,284,352 shares	(1,262.9)	(1,231.0)
Retained earnings	562.5	636.0
Accumulated other comprehensive income	91.6	99.0
Total Stockholders' Equity	995.4	1,101.3
Total Liabilities and Stockholders' Equity	$ 1,518.6	$ 1,638.1