Tellabs on Target

It hits second-quarter estimates.
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Updated from 7:11 a.m. EDT with new stock price

Tellabs

(TLAB)

beat second-quarter targets and guided in line for the third quarter.

The Naperville, Ill., telecom equipment company made $30 million, or 7 cents a share, for the quarter ended June 29, down from the year-ago $54 million, or 12 cents a share. On a non-GAAP basis, excluding certain costs, earnings fell to 9 cents a share from 16 cents a year earlier. Revenue fell 3% from a year ago to $535 million.

Analysts surveyed by Thomson Financial were looking for a 6-cent profit on sales of $513 million.

"As the telecom industry transforms, Tellabs' new technologies are taking root in our customers' networks," said CEO Krish A. Prabhu. "We continue to focus on improving gross profit margins related to those products and technologies."

The company guided to third-quarter revenue of around $500 million, in line with Wall Street's $505 million target.

The news comes a day after Tellabs shares rallied on a report in

TheStreet.com

that the company was considering a takeover bid from

Nokia Siemens

. Tellabs was up 51 cents, or 4.18%, to $12.71 in recent trading.