Telecoms equipment maker Tellabs fell into the red in its third quarter as it slashed expenses and cut jobs amid reduced customer spending.
The Illinois-based company, which announced the closure of its plant in Drogheda, Co Louth with the loss of 204 jobs in August, saw its results, including one-time items, plunge to a loss of $49.47 million, or 12 US cents a diluted share, compared with a profit of $187.3 million, or 45 US cents a diluted share, last year.
Tellabs still employs about 500 people at its plant in Shannon.
One-time items included a $50 million restructuring charge announced in August, a gain of $6 million from the sale of stock and a write-down of $19 million in technology investments. Officials pointed to stability in orders, but nevertheless declined to provide any guidance for the fourth quarter. Analysts expect the company to earn five cents a share, with a range of nil to a profit of 10 cents, according to Thomson Financial/First Call.
Merrill Lynch analyst Mr Michael Ching credited the company for managing its operating expenses - they fell 13 per cent from the second quarter - but said many analysts were looking for sales in the range of $475 million.
Excluding charges, Tellabs's earnings fell to $2.4 million, or one cent a diluted share, from $196.26 million, or 47 cents a diluted share, last year.
