Tellabs Cuts Earnings Outlook for Quarter

Tellabs Inc. slashed its second-quarter financial outlook, becoming the latest telecommunications equipment maker to be slammed by the slowing economy and reduced equipment-spending by telecommunications and Internet customers.

The Lisle, Ill.-based company expects second-quarter earnings per share to be break-even before restructuring and other charges. Wall Street analysts had expected the company to earn 29 cents a share. Sales will be about $500 million, down from prior guidance of $780 million to $820 million.

Trading of Tellabs’ stock was halted after hours as the news was released. The stock closed at $21.20, down $1.10, on Nasdaq.