Tellabs CEO to Resign

Tellabs President and CEO Krish A. Prabhu told the company he plans on resigning March 1.

The company said Thursday it has initiated a search for Prabhu’s successor, led by a special subcommittee headed by board member William Souders.

The 53-year-old Prabhu has served as president and CEO since 2004. The company said he is leaving for personal reasons.

But the move does come just weeks after Tellabs announced a 93 percent drop in quarterly profit.

"Under Krish's leadership, Tellabs has doubled overall revenue and become a leader in new markets such as fiber access," said Michael J. Birck, Tellabs chairman. "We wish Krish all the best in his future endeavors."

The Tellabs board also authorized an additional $600 for its stock repurchase program. It authorized $176.1 million in July 2006. The program accounts for about 22 percent of Tellabs’ outstanding shares, the company said.

Since 2005, Tellabs has repurchased 50.9 million shares at a cost of $513.9 million, or about 12 percent of the outstanding shares.

Tellabs www.tellabs.com

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