Segment Information

3 Months Ended

Mar. 29, 2013

Segment Information

10. Segment Information

We report in four segments: Optical, Data, Access and Services.

Optical segment products are primarily used to manage large volumes of telecommunication traffic in metro areas. The Optical segment includes Tellabs^® 5000 Series of Digital Cross-Connect systems, the Tellabs^® 6300 Managed Transport System, the Tellabs^® 7100 OTS and the Tellabs^® 7300 Metro Ethernet Switching Series.

Data segment products are primarily used in mobile backhaul applications, and for business services and various edge routing applications. The Data segment includes the Tellabs^® 8100 Managed Access Systems and the Tellabs 8600 and 8800 Smart Routers.

Access segment products are primarily used to enable service providers to bundle Internet, video, and voice over high-speed fiber-based networks and in Optical LAN applications. The Access segment includes the Tellabs^® 1000 and 1100 Multi-service Access systems, and the Tellabs^® 1600 Optical Network Terminals.

The Services segment delivers deployment, training, support and professional services to Tellabs’ customers. Through these offerings, Tellabs serves its customers through the phases of planning, deploying and operating a network.

We define segment profit (loss) as gross profit less research and development expenses. Segment profit (loss) excludes sales and marketing expenses, general and administrative expenses, the amortization of intangibles, restructuring and other charges, and the impact of equity-based compensation.

Consolidated revenue by segment follows:

	First Quarter
	3/29/13		3/30/12
Optical	$	93.1	$	104.4
Data		32.9		69.4
Access		39.0		35.9
Services		44.4		48.2
Total revenue	$	209.4	$	257.9

Segment profit (loss) and reconciliation to operating loss by segment follows:

	First Quarter
	3/29/13			3/30/12
Optical	$	12.8		$	14.8
Data		(14.8	)		(5.0	)
Access		8.2			6.4
Services		14.6			15.2
Total segment profit	$	20.8		$	31.4
Sales and marketing expenses		(27.0	)		(36.4	)
General and administrative expenses		(17.6	)		(21.1	)
Equity-based compensation		(1.2	)		(2.6	)
Intangible asset amortization		(1.1	)		(2.2	)
Restructuring and other charges		(34.7	)		(106.0	)
Operating loss	$	(60.8	)	$	(136.9	)

The segments use many of the same assets. For internal reporting purposes, we do not allocate assets by segment and therefore asset, depreciation and amortization, or capital expenditure by segment information is not provided to our chief operating decision maker.