Company spokesman Jena Medina says Tellabs expects to move out form the facility by the end of the year. The facility is leased from St. Paul Properties, Inc., sheadds.
"We are evaluating our options about what we will do with the property," Medina says.
Through these and earlier actions, Tellabs expects to reduce its quarterly operating expenses to $180 million by the first quarter of 2002, a 26% reduction.
Lisle, IL-based Tellabs sells optical networking, broadband access and voice-quality enhancement equipment. The company also says it will close a manufacturing facility in Round Rock, TX.
As a result of these actions and a review of inventory, Tellabs will record restructuring and one-time charges of about $150 million in the fourth quarter of 2001.
The step is a "necessary prelude to our long-term plan to reinvent Tellabs, renew our growth and adjust to the new realities of the communications marketplace,'' says Richard C. Notebaert, president and CEO of Tellabs.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
