Searchable text section of graphics shown above - SEC.gov | HOME · Compelling Tier 1 Equipment Vendor • Combines leading suppliers for access and transport • Strengthens relationships

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0001047469-04-028414.txt : 200409100001047469-04-028414.hdr.sgml : 2004091020040910060919ACCESSION NUMBER:0001047469-04-028414CONFORMED SUBMISSION TYPE:425PUBLIC DOCUMENT COUNT:19FILED AS OF DATE:20040910DATE AS OF CHANGE:20040910

SUBJECT COMPANY:

COMPANY DATA:COMPANY CONFORMED NAME:ADVANCED FIBRE COMMUNICATIONS INCCENTRAL INDEX KEY:0000898805STANDARD INDUSTRIAL CLASSIFICATION:TELEPHONE & TELEGRAPH APPARATUS [3661]IRS NUMBER:680277743STATE OF INCORPORATION:DEFISCAL YEAR END:1231

FILING VALUES:FORM TYPE:425SEC ACT:1934 ActSEC FILE NUMBER:000-28734FILM NUMBER:041023985

BUSINESS ADDRESS:STREET 1:1465 N. MCDOWELL BLVD.CITY:PETALUMASTATE:CAZIP:94954BUSINESS PHONE:7077947700

MAIL ADDRESS:STREET 1:1465 N. MCDOWELL BLVD.CITY:PETALUMASTATE:CAZIP:94954

FILED BY:

COMPANY DATA:COMPANY CONFORMED NAME:TELLABS INCCENTRAL INDEX KEY:0000317771STANDARD INDUSTRIAL CLASSIFICATION:TELEPHONE & TELEGRAPH APPARATUS [3661]IRS NUMBER:363831568STATE OF INCORPORATION:DEFISCAL YEAR END:1231

FILING VALUES:FORM TYPE:425

BUSINESS ADDRESS:STREET 1:ONE TELLABS CENTERSTREET 2:1415 WEST DIEHL ROADCITY:NAPERVILLESTATE:ILZIP:60563BUSINESS PHONE:630-378-8800

MAIL ADDRESS:STREET 1:ONE TELLABS CENTERSTREET 2:1415 WEST DIEHL ROADCITY:NAPERVILLESTATE:ILZIP:60563

4251a2143255z425.htm425

Filed by Tellabs, Inc.
pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12 of the
Securities Exchange Act of 1934

Subject Company: Advanced Fibre Communications, Inc.
SEC File No.: 333-116794

THE FOLLOWING IS A PRESENTATION GIVEN BY TELLABS,INC. AT THE SMITH BARNEY CITIGROUP TECHNOLOGY CONFERENCE ON SEPTEMBER8,2004.

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SmithBarney Citigroup Technology Conference

September 8, 2004

[GRAPHIC]

Krish Prabhu

President and CEO

[LOGO]

[LOGO]

This Presentation MayContain Forward-looking Statements.

Such statements should beviewed in the context of the risk factors articulated in Tellabs most recentSEC filings. This presentation may include GAAP and non-GAAP financialmeasures. A complete reconciliation of such measures can be found at ourtellabs.com Web site.

[PHOTO]

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This communication is not a solicitation of a proxy fromany security holder of Tellabs, Inc. or Advanced Fibre Communications,Inc. Tellabs, Inc. has filed with theSecurities and Exchange Commission a Registration Statement on Form S-4 (FileNo. 333-116794) which contains a Preliminary Joint ProxyStatement/Prospectus. Tellabs, Inc. andAdvanced Fibre Communications, Inc. expect to mail a Definitive Joint ProxyStatement/Prospectus to their respective stockholders concerning the proposedmerger of Advanced Fibre Communications, Inc. with a subsidiary of Tellabs,Inc. WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE DEFINITIVE JOINT PROXYSTATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC,BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders will be ableto obtain the documents free of charge at the SECs website, www.sec.gov. Inaddition, documents filed with the SEC by Tellabs, Inc. will be available freeof charge from Tellabs Investor Relations, 1415 West Diehl Road, Naperville, IL60563, 630-798-8800. Documents filedwith the SEC by Advanced Fibre Communications, Inc. will be available free ofcharge from Advanced Fibre Communications Investor Relations, 1465 NorthMcDowell Blvd., Petaluma, CA, USA 94954, 707-792-3500.

Interest ofCertain Persons in the Merger.

Tellabs, Inc.and Advanced Fibre Communications, Inc., and their respective directors andexecutive officers and other members of their management and employees, may bedeemed to be participants in the solicitation of proxies from the stockholdersof Tellabs, Inc. and Advanced Fibre Communications, Inc. in connection with themerger. The directors and executiveofficers of Tellabs, Inc. and Advanced Fibre Communications, Inc. haveinterests in the merger, some of which may differ from, or may be in additionto, those of the respective stockholders of Tellabs, Inc. and Advanced FibreCommunications, Inc. generally. Those interestswill be described in greater detail in the Definitive Joint ProxyStatement/Prospectus with respect to the merger, which may include potentialmembership on the Tellabs, Inc. Board of Directors, option and stock holdingsand indemnification. Information aboutthe directors and executive officers of Tellabs, Inc. and their ownership ofTellabs, Inc. stock is set forth in the proxy statement for Tellabs, Inc.s2004 annual meeting of stockholders.Information about the directors and executive officers of Advanced FibreCommunications, Inc. and their ownership of Advanced Fibre Communications, Inc.stock is set forth in the proxy statement for Advanced Fibre Communications,Inc.s 2004 annual meeting of stockholders. Investors may obtain additional informationregarding the interests of the participants by reading the joint proxystatement/prospectus.

3

Three Strategies for Growth

Energize The Core

Establish A Presence In Data

Expand Into Adjacent Markets

4

Energize The Core

[GRAPHIC]




Deployed Base:

Ethernetcapability on Tellabs 5500

IntegratedVQE on Tellabs 5500

Integratedmanagement for Tellabs 8100/6300

Ethernet-over-SDHfor Tellabs 6300

New Transport Platforms:

IntegratedSONET and DWDM on Tellabs 7100

IntegratedTDM and Ethernet on Tellabs 5500 NGX

5

Establish A Presence In Data

[GRAPHIC]




Introduce a Family of NewData Products:

Tellabs 8800multi-service router series for IP/MPLS services convergence

Tellabs 8600Ethernet service delivery platform

6

Expand Into Adjacent Markets

[GRAPHIC]




Establish a Position inAccess

Announceda merger with AFC

7

AFC Brings

Leadershipin access market

Firstmover in developing fiber technologies

Growingrelationships with major incumbent North American carriers

Establishedrelationships with more than 800 Independent Operating Companies

Growthplus a strong balance sheet

8

Tellabs Brings

Leadershipin transport market

Strongrelationships with major incumbent North American carriers

Scale,scope and experience needed to satisfy RBOC customers

Award-winningcustomer service capabilities

Significantinternational channel

Profitabilityplus a strong balance sheet

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A Preeminent Combination of Growth andProfitability

[GRAPHIC]

Compelling Tier 1 Equipment Vendor

Broad End-to-End Solution

Well Positioned for the Network Upgrade Cycle

Accelerating Revenue Growth

Continuing Focus on Profitability

10

Strategic Rationale

Compelling Tier 1 Equipment Vendor

Combinesleading suppliers for access and transport

Strengthensrelationships with major incumbent carriers

Strongbalance sheet, cutting-edge technology

11

CompellingTier 1 Equipment Vendor





Best-of-breedaccess, transport and data solutions for network infrastructure

Complementaryproduct portfolios, with ability to manage via umbrella network management

12

Compelling Tier 1 EquipmentVendor





Best-of-breedaccess, transport and data solutions for network infrastructure

Complementaryproduct portfolios, with ability to manage via umbrella network management

Well Positioned for the Network Upgrade Cycle

Canleverage incumbent position to drive network upgrades VoIP, FTTP, Ethernet,MPLS

Goalof a converged MPLS framework

Strongposition in FTTP

RedirectR&D investment to best opportunities

13


Combinestwo profitable businesses

Complementarydomestic and international sales channels

Tellabsbrings established professional services capabilities

14


Combinestwo profitable businesses

Complementarydomestic and international sales channels

Tellabsbrings established professional services capabilities

Continuing Focus on Profitability

Leveragesupply-chain efficiencies

Operatingleverage in continued businesses

Eliminateduplicative public company costs and other SG&A savings

15

Amended Terms

$1.5Bdeal equals $16.60/share when announced

0.504TLAB shares and $12 for each AFC share

Accretiveto full-year 2005 results on pretax, per-share basis including synergies andexcluding amortization of acquired intangibles and purchase accountingadjustments

Subjectto SEC approval of Proxy/Prospectus and approval by AFC shareholders

Merger proceeds on terms that reflect current financialoutlook

16

Approval of TLAB shareholdersnot required

Approximately45M TLAB shares to be issued, 462M to be outstanding

AFCshareholders will own 10% of the company

JohnSchofield to be Vice Chairman of Tellabs BOD

Expectedto close before end of 2004

17

Q&A

[PHOTO]

Krish Prabhu

[LOGO]

18

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