Tellabs Downgraded to Underperform

We downgrade our recommendation for Tellabs Inc. (TLAB) to Underperform, following its weak financial results for the fourth quarter of 2010, well below the Zacks Consensus Estimates. Tellabs is facing serious problems in its core wireless backhaul solutions segment. AT&T (T) was its major customer for its 8800 multi-service router. Recently, AT&T decided to upgrade [...]