Tellabs Surges on Sales Report - TheStreet

Tellabs Surges on Sales Report

The stock is up 17% as the top line improves from last quarter.
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Tellabs

(TLAB)

managed to chop its loss in half with the help of cost-cutting and slightly stronger demand from its customers.

The maker of communications equipment said it lost $110 million in the second quarter, or 27 cents a share, compared with a loss of $218 million, or 35 cents a share, a year earlier.

Sales fell to $234 million from $345 million a year ago, but they beat estimates and rose 5% from $223 million in the first quarter.

Excluding charges related to restructuring costs, Tellabs posted a loss of $31 million, or 8 cents a share, matching Wall Street estimates, according to Thomson First Call.

Shares of the company surged $1, or 17%, to $6.90.

"We're making real progress on the path to profitable growth," the company said in a press release. "Revenues are up, expenses are down, and we're expanding growth opportunities in new data and IP markets to bolster our competitive advantage."

Other shares in the telecom-equipment sector were boosted by Tellabs' report.

Ciena

(CIEN) - Get Report

was rising 44 cents, or 8.1%, to $5.83, and

Adtran

(ADTN) - Get Report

was gaining $1.73, or 3.7%, to $48.88. But shares of

ADC Telecom

(ADCT) - Get Report

were down 3 cents, or 1.5%, at $2.05.