SOURCE: The Bedford Report

The Bedford Report

December 01, 2010 11:25 ET

In Spite of High Growth Prospects, Communications Equipment Companies Issue Conservative Guidance

The Bedford Report Provides Analyst Research on Tellabs & Ciena

NEW YORK, NY--(Marketwire - December 1, 2010) -  The communications equipment industry has shown significant growth this year. As corporations become more mobile, connection solutions allowing employees to connect directly with the corporate server are growing in appeal. Businesses are looking for faster options and equipment makers that offer these options have the opportunity to bolster their top lines. With such growth potential throughout the industry, companies are fighting harder than ever to secure their respective niches. Competition is getting heated and this has lead to multiple patent infringement cases in the last year. The Bedford Report examines the outlook for companies in the Communications Equipment industry and provides research reports on Tellabs, Inc. (NASDAQ: TLAB) and Ciena Corporation (NASDAQ: CIEN). Access to the full company reports can be found at:

At the moment there is massive demand for mobile internet -- and demand is only likely to grow going forward -- and telecom customers are typically looking for smooth transitions to 3G or 4G networks. Tellabs has zoned in on this growth driver, and its management has claimed throughout the year that it is focused on growth areas in so-called mobile "backhaul solutions."

Tellabs competes with industry heavyweight, Cisco, in the routing and switching businesses. When Cisco reported very disappointing quarterly earnings last month, it subsequently hurt Tellabs' share price. Cisco's forward guidance missed consensus analyst estimates by a large margin as Cisco claims the industry faces a "challenging economic environment."

The Bedford Report releases regular market updates on the Communications Equipment Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at and get exclusive access to our numerous analyst reports and industry newsletters.

Tellabs, itself, saw its shares plummet after it issued a very conservative fourth quarter guidance. For the current quarter, Tellabs said it expects revenue between $410 million and $430 million -- this target was well below consensus analysts' forecasts of $442 million.

Ciena says it expects to see fourth quarter revenue of $390 million to $409 million, with adjusted gross margin in the low 40s percent range

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