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I'd also like to remind you that this presentation contains forward-looking statements about future results, performance and achievements, financial and otherwise. These statements reflect management's current expectations, estimates and assumptions. The forward-looking statements are not guarantees of future performance, and involve risks, uncertainties and other factors that may cause Tellabs' actual results, performance or achievements to be materially different. A discussion of the factors that may affect Tellabs' future results are contained in Tellabs' most recent SEC filings.The forward-looking statements made in this presentation are being made as of the time and date of its live presentation. If the presentation is reviewed after the time and date of its live presentation, it may not contain current or accurate information. Tellabs disclaims any obligation to update or revise any forward-looking statement based on new information, future events or otherwise. This presentation may also include some non-GAAP financial measures. Reconciliation between non-GAAP financial measures and GAAP financial measures can be found at tellabs.com and in our SEC filings. At this time, I'll turn the call over to Mike. Michael J. Birck Good morning, folks. You haven't heard from me on one of these quarterly investor calls for quite some time. The reason for my presence this morning is a sad one, undoubtedly known to all of you. Early this month, our CEO, Rob Pullen, lost his battle with colon cancer. This is a sad time for Tellabs as we deal with the consequences of Rob's passing and the challenges of a troubled industry. First, my personal thanks towards everyone who called or wrote to express sorrow at Rob's death. I know that many of you knew Rob personally and are as saddened as we at this turn of events. But we must go forward and there is much work to do. Tellabs' Board of Directors, together with the executive team, is focusing on the future and our customers and stockholders.
The board has appointed a CEO search committee, which I am chairing. Meanwhile, the board is confident that the current executive team will continue to lead us forward as we take on the undeniable challenges of the current telecom environment. This team knows the business, they know and help develop our strategy and they know our customers. The board has asked Dan Kelly, who I know most of you know, to serve as acting CEO and President. Dan and Rob joined Tellabs in the same year. Dan has been a part of Tellabs for 28 years in increasingly responsible roles, most recently as EVP for Global Products, with responsibility for our R&D activities worldwide. The board is confident that Dan and the executive team will more than just hold the fort and that they have what it takes to move this company forward.Now I'd like to turn this call over to Dan and Andrew for an overview of the second quarter and answer any questions you may have. Daniel P. Kelly Thanks, Mike. I appreciate your support and the support of the entire Tellabs' board. I would like acknowledge how much we miss our colleague and friend, Rob Pullen. Rob taught us a lot and he made major contributions at Tellabs and in our industry over the past 28 years. Now we are moving forward, focusing on helping our customers succeed and improving our profitability. We made good progress in the second quarter. Despite the economic challenges in Europe and elsewhere, we were able to generate $32 million in cash from operations in the quarter. Tellabs' revenue grew 12% on a sequential basis and we produced non-GAAP net earnings of $0.02 a share. Tellabs continues to execute our vision and strategy with the focus on Mobile Backhaul, Packet Optical and Professional Services solutions. We recently reorganized our research and development teams and announced a change in the segments that reflect the way we run the business. We're working closely with our customers in these markets to create the solutions and products they need to succeed now and into the future. Each of these markets is growing faster than our customers' overall capital expenditures.
Now I'd like to review our progress in Packet Optical, Mobile Backhaul, access and Professional Services. In Packet Optical, we're seeing good customer uptake for new features on the Tellabs 7100 Packet Optical platform. Sales of the packet switching modules increased, marking Tellabs' best quarter ever for packet switching. Our packet switching module can cut capital expenses up to 60% compared with traditional DWDM, plus router architectures.Sales of Tellabs' 40G transponders tripled compared with the first quarter, marking our best quarter ever for 40-gig transponders. We've been testing our new 100-gig transponder with multiple customers. We're preparing for 100-gig customer trials and deployments in the second half of this year. Read the rest of this transcript for free on seekingalpha.com