Tellabs Inc. (TLAB) declared its third quarter results today. Total revenues of $389.3 million were down 8.2% year over year but marked an improvement of 1% sequentially. Revenues were also below the Zacks Consensus Estimate of $393 million. The decline in year-over-year revenues is the result of lower sales for the Broadband segment products partially offset by growth in the Transport and Services segment revenues.   On a GAAP basis, net income in the third quarter was $29.3 million or 7 cents per share compared to a net loss of $998.5 million or 2.51 cents per share in the prior-year quarter, and a net income of $15.7 million or 4 cents per share in the previous quarter. However, adjusted net income (excluding special items) in the reported quarter was $28.2 million or 7 cents per share, beating the Zacks Consensus Estimate of 6 cents per share.   Gross ...

For Immediate Release

Chicago, IL – October 15, 2009 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Telecom sector, including Qualcomm Inc. (QCOM), Vodafone Group Plc (VOD), China Mobile Ltd. (CHL), Amdocs Ltd. (DOX) and Tellabs Inc. (TLAB).

Here is the latest on the Telecom sector:

Telecom carriers and equipment providers that offer the most attractive opportunities are focused on 3G wireless technologies, emerging 4G technologies, broadband (DSL) and fiber-to-the-home/premises networking. Last year’s collapse of financial markets has left an indelible mark on many of us. We have seen that sector diversity is a less secure natural hedge in today’s increasingly correlated world markets.

However, the telecommunications industry as a whole offers a number of attributes that are difficult to ignore for most investors.

Telecommunications is a necessary utility: The need ...

Oplink Communications, Inc. (OPLK) recently reported revenues of $32.4 million for the fourth quarter of 2009, down 13.3% year over year but up 5.2% sequentially.

On a GAAP basis, net income was $249,000, or 1 cent per share. On a non-GAAP basis (excluding stock based compensation, amortization of intangibles and loss on sale of assets), EPS came in at 15 cents, easily beating the Zacks Consensus Estimate of 4 cents.

Total revenues for fiscal 2009 were $143.7 million, down 18.5% from a year ago. Net loss on GAAP basis was $13.8 million, or 67 cents. On a non-GAAP basis, net income stood at 52 cents.

Going forward, management stated that order visibility remains limited and expects revenues between $30 million and $34 million in the first quarter of fiscal 2010. Non-GAAP EPS is projected between 13 cents and 19 cents.

California-based Oplink provides design, integration, and optical manufacturing solutions (OMS) for optical

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Today we are featuring top-performing "small-cap" equity mutual funds, which primarily invest in equity securities of companies that have market capitalizations of less than $2 billion.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Small-Cap Equity Funds.3 Solid Choices

Buffalo Small Cap (BUFSX) seeks long-term growth of capital. The fund invests primarily in common stocks, preferred stocks, convertible preferred stocks warrants and rights of domestic companies that have a market capitalization of $1 billion or less at the time of purchase.

The fund has an expense ratio of 1.01%. As of December 2008, its portfolio turnover was 8%.

Among top holdings at the fund are Waddell & Reed Financial Inc. (WDR), MKS Instruments Inc. (MKSI) and DeVry Inc. (DV).

Queens Road Small Cap

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Today we are featuring top-performing "Small-Cap" equity mutual funds, which primarily invest in equity securities of companies that have market capitalizations of less than $1 billion.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Small-Cap Equity Funds.3 Super Picks

FBR Focus (FBRVX) was incepted in January 1997. The fund seeks long-term capital appreciation by investing primarily in the equity securities of domestic companies.

FBR Focus Fund invests in small and mid-cap companies that demonstrate consistent earnings growth, better-than-average returns on equity and high levels of free cash flow. It is characterized by a low level of business risk and reflects an approach that is inherently conservative and tax efficient.

The fund has been managed by Charles T. Akre since its inception. Akre has over 30 years of experience in money

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Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

Akamai Technologies Inc (AKAM) Alliant Techsystems Inc (ATK) AmeriCredit Corp (ACF) Cadbury Plc (CBY) Carter's Inc (CRI) Check Point Software Technologies Ltd (CHKP) Coca-Cola Enterprises Inc (CCE) Dolby Laboratories Inc (DLB) Enzon Pharmaceuticals Inc (ENZN) Farmers Capital Bank Corp (FFKT) FBR Capital Markets Corp (FBCM) Intevac Inc (IVAC) Lance Inc (LNCE) MediciNova Inc (MNOV) Meritage Homes Corp (MTH) Monarch Casino & Resort Inc (MCRI) NetLogic Microsystems Inc (NETL) Nicor Inc (GAS) Oriental Financial Group Inc (OFG) Phase Forward Inc (PFWD) Power-One Inc (PWER) Ship Finance International Ltd (SFL) Stoneridge Inc (SRI) Tellabs Inc (TLAB) Total System Services Inc (TSS) Travelzoo Inc (TZOO) Universal Health Services Inc (UHS) ...

Highlights include Oplink Communications, Inc. (OPLK), Tellabs, Inc. (TLAB), Alcatel-Lucent (ALU), Nortel Networks Corp. (NT) and Cisco Systems, Inc. (CSCO).Oplink Communications: Q3 EPS Beat & Tepid Revenue GuidanceOplink Communications' (OPLK) fiscal Q3 results were impressive on EPS (non-GAAP), although revenues came in marginally ahead of our estimate. Q2 EPS guidance also compares favorably to our expectation, while the revenue guidance (the same as the prior quarter guidance) leaves little room for upside in spite of the fact that overall business conditions are beginning to improve compared to the prior quarter.Oplink reported fiscal Q3 revenues of $30.8 million, slightly above the midpoint of the $28-$32 million guidance range, and slightly ahead of our estimate of  $30.4 million. Reported revenues were down 25% y/y and 18% q/q. 10% customers included Tellabs (TLAB) and Huawei with Alcatel-Lucent (ALU), Nortel ...