CS First Boston downgraded Tellabs (TLAB

) to hold from buy.

Analyst James Parmelee says the preannouncement is not surprising in the context of sector weakness; his cautious comments following the SUPERCOMM industry conference on June 6; and his estimate cuts on June 15. However, he says the magnitude of the revenue shortfall still is more dramatic than his previous view.

Parmelee downgraded the shares pending improved sales visibility as well as more significant evidence of the company's successful new product ramp. He cut the $1.20 2001 EPS on $3.2 billion sales to $0.40 on $2.3 billion sales, and cut the $1.30 2002 EPS on $3.5 billion in sales to $0.70 on $2.5 billion in sales.