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.
was rising 44 cents, or 8.1%, to $5.83, and
was gaining $1.73, or 3.7%, to $48.88. But shares of
were down 3 cents, or 1.5%, at $2.05.