Tellabs Awards CEO Job to its Acting Leader
Communications equipment maker Tellabs Inc. appointed Daniel Kelly as its CEO five months after he took over the job on an acting basis.
Kelly, 51, took over from Rob Pullen in late June. Pullen died of cancer a few days later.
"Dan is the right leader to enable Tellabs' success in these challenging times," Tellabs Chairman Michael J. Birck. "He has the deep expertise, relationships and experience to execute our plan to improve Tellabs' performance."
Through the first nine months of this year, Tellabs' revenue had fallen 16 percent from last year to $810 million. The company, which is based in Naperville, Ill., has lost $148 million so far this year.
The struggles have caused Tellabs's stock to plunge by 27 percent so far this year.
In an effort to boost its stock, Tellabs also announced plans to pay a special dividend of $1 per share next month. Tellabs' stock surged 35 cents, or nearly 12 percent, to $3.30 on the news.