Tellabs Shares Slip

Shares of Tellabs Inc. fell 4.7% after the telecommunications equipment company warned that first-quarter profit would fall below expectations. The company said it expects earnings to come in around 25 cents to 27 cents a share, compared with the analysts’ consensus estimate of 30 cents. The Lisle, Ill.-based company cited lower gross profit margins, largely stemming from higher-than-expected component costs and increased customer-service installations, which have a much lower margin than products. Revenue is expected to be up 35%, somewhat higher than expectations, to about $630 million. Tellabs shares closed down $2.88 at $58.13 on Nasdaq.