Reflecting a downward trend that some other IT companies are reporting, a suburban Chicago-based wireline and mobile networks solutions provider said today that it’s expecting fourth-quarter revenue to come down from the year-ago quarter.

 

Officials at Naperville, Illinois-based Tellabs (News - Alert) say they’re expecting revenue of between $400 million and $424 million for the fourth quarter, and that they’re taking steps to restructure that include reducing investments in access products and freeing up resources to focus on data and transport products.

 

“Restructuring actions under this plan are expected to be completed by the third quarter of 2009,” company officials say. “We expect to record pretax charges in the fourth quarter of 2008 through the third quarter of 2009 in the range of $24 million to $29 million, of which approximately $11 million will be for workforce reductions of approximately 280 employees and $13 million to $18 million will be for facility and asset-related charges.”

 

Tellabs’ announcement comes as the company reports $424 million in third-quarter revenues. The figure marks a 7 percent decrease from the year-ago quarter, though revenue from outside North America rose 21 percent from the year-ago quarter, to $160 million.

 

The news from Tellabs comes as officials with another IT industry stalwart, Texas Instruments (News - Alert), report that third quarter net earnings of $563 million, or 43 cents per share, are down 27 percent from $776 million, or 54 cents per share, from the year-ago quarter.

 

The company reportedly will cut its work force by 650 people in six nations from its unit that makes cell phone chips. That’s part of a larger plan to reduce expenses in its wireless business by about one-third, or more than $200 million annualized.

 

TI Chairman, President and Chief Executive Officer Rich Templeton said he entered the third quarter with a “cautious view of the economy.”

 

Templeton said that despite recessionary conditions, TI’s revenue from its analog business was steady, and that its embedded processing business grew 9 percent year-over-year.

 

“Although not immune to near-term economic pressures, these are two of the best long-term opportunities in our industry,” Templeton said. “We are a leader in each and expect to strengthen our position even in this period of economic weakness.”

 

Tellabs also is changing up its strategy in this economic climate.

 

The company says it recorded a loss of $999 million, or $2.51 per share in the third quarter, mostly due to a non-cash goodwill impairment charge of $988 million.

 

Tellabs achieved record data and IP networking revenue in the quarter, according to Rob Pullen, Tellabs president and chief executive officer, but must reduce its workforce and write down the goodwill.

 

“Going forward, we are focusing future investments in our target solutions – mobile backhaul, optical networking and business services,” Pullen said. “We are also increasing investment in our sales channels.”