Tellabs Q3 EPS Beats By A Penny; Sees Q4 Revs Flat Sequentially

Tellabs (TLAB) this morning posted third quarter revenue of $389 million with profits of 7 cents a share; the Street had expected the telecom equipment provider to report $394 million and 6 cents.

For the fourth quarter, the company sees revenue sequentially flat, plus-or-minus 3%; the Street had been looking for $399 million.

Tellabs expects gross margin in Q4 to improve to 43% from 41.7% in Q3

In the quarter, TLAB bought back9.5 million shares for $62 million.

In early trading, TLAB is up 14 cents, or 2.1%, at $6.80.