DOW JONES NEWSWIRES 
 

Tellabs Inc.'s (TLAB) fourth-quarter net income doubled amid a tax gain as the telecommunications-equipment maker was hit by belt-tightening at its phone and Internet clients.

The supplier of voice, data and video systems also forecast first-quarter revenue of $345 million to $375 million. Analysts polled by Thomson Reuters were looking for $385 million.

Tellabs reported net income of $12.8 million, or 3 a share, up from $6.3 million, or a penny a share, a year earlier. Excluding items the tax benefit and restructuring charges, per-share earnings rose to 9 cents from 4 cents. Analysts expected 5 cents.

Revenue fell 13% to $408.3 million. In October, the company projected revenue in the low $400 millions to $424 million, below analysts' then-estimates.

Gross margin rose to 41.6% from 33.4% amid cost cutting.

Tellabs, a key supplier for phone giants such as AT&T Inc. (T) and Verizon Communications Inc. (VZ), has struggled as its clients reined in capital expenditures. Broadband revenue, which makes up more than half of its revenue, fell 17% while other segments saw smaller declines.

Shares closed at $4.03 on Monday and there was no premarket trading.

-By Melissa Korn, Dow Jones Newswires; 201-938-5400; melissa.korn@dowjones.com

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