JP Morgan Maintains Underweight on Tellabs

JP Morgan reiterates its Underweight rating on Tellabs, Inc.

as the company amended third quarter 10Q, restated second and third quarter financials and lowers headcount cuts. JPM says, “On 11/29, TLAB filed an 8-K indicating that it plans to restate historical Q2'11 and Q3'11 financials due to an issue with revenue recognition related to a transaction in Q2. On December 5 the company filed a modified 10Q detailing the changes in segments (shown in table below). The change was primarily in the Broadband data segment. … Tellabs noted that it expects net headcount to decline by 150 people through Q2'12 vs. a previous target of 200 people.” TLAB closed at $4.51 per share on Tuesday.