Vendor results 2 - 28/1/06

Tellabs beats analysts estimates with 4Q05 revenues jumping 37% to $521m and earnings of $100m. For the year, Tellabs reported revenues of $1.9bn (up 53%) and earnings of $176m (+38%). Tellabs also boosted guidance above estimates for the first quarter of 2006. As a result, Tellabs share jumped 20% to $12.7. Tellabs broke revenues down: Transport at $170m; Access at $180m; Managed access at $91m; Broadband data at $31m; Voice-Quality Enhancement at $6m and Services and Solutions at $44m.

Nokia reported 4Q05 net income of €1.1bn (down 1%) on sales of €10.3bn (up 9.3%). It sold 84m phone units in the quarter (34% market share), but ASP and margin continue to fall. The average selling price, or ASP, of Nokia's handsets fell 11% to EUR99. For the year, sales were €34.2bn (+16%), and net profit was €3.6bn (up 13%). Sales breakdown is: Mobile phones at €20.8bn (+12%); Multimedia at € 6bn (+63%); Networks at € 6.6bn (+2%). Operating margin is down at 13.6% globally.

Siemens posts 19% drop in 4Q05 net profit to €813m on sales growing 22% to €20.7bn and orders jumping 31% to €26.8bn. Operating income was down 11% to €1.4bn. Two problematic units remain Communications and SBS. Com posted a profit of €323m (but including a gain of €356m from Juniper share sales). SBS posted a loss of €229m. At the end of 2005, Siemes had a cash pool of €6.8bn (down 32%).

Qualcomm reported 4Q05 earnings of $620m (up 21%) and revenues of $1.7bn (up 25%).

Microsoft posted 4Q05 earnings at $3.7bn (up 6%) on sales of $11.8bn (+9%). It reported $93m in revenue from its mobile business during 4Q05 (up 40%)

Redback is recovering (after bankruptcy in 2003), reporting its first ever penny per share net income or $300k, on revenues of $48m.

Ericsson could announce 4Q05 net profit of $ 946m (+25%), on revenues of $5.8bn (+11%). Gross margin is seen down to 45.5% from a peak of 48.5%.