The company paid tribute to his performance since his appointment in 2004 of doubling revenue, but Prabhu said it was the right time for a new leader to begin the next chapter at Tellabs.

Earnings at the company have so far this year fallen 74% to $3.6m on revenue that has also fallen 12.4% to $457.9m. To placate investors, directors have authorized a $600m share buy-back.

A search has been launched for Prabhu’s successor.