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Tellabs again lowers estimates

Tellabs slashed its first-quarter targets for the second time, joining the long list of telecom equipment makers warning of slower-than-expected sales.The company now expects revenue to be more than $100 million less than it originally projected.
Written by ZDNET Editors, Contributor
Tellabs slashed its first-quarter targets for the second time, joining the long list of telecom equipment makers warning of slower-than-expected sales.

The company now expects revenue to be more than $100 million less than it originally projected. In the troubled telecom equipment sector, companies including Cisco Systems, Nortel Networks and, most recently, Sycamore Networks and Extreme Networks have warned that revenue will be lower than expectations.

Tellabs, like its competitors, makes equipment to transmit data, video and voice signals, and sells mostly to phone companies, cable operators and government agencies.

The company's shares sank $5.19, or 12.74 percent, to $35.56 in morning trading. --Tiffany Kary, ZDNet Inter@ctive Investor

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