Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) beat expectations with its second-quarter earnings, but like many others lately, the company said the economy is dragging down its sales.

For its second quarter, Tellabs reported revenues of $288 million and a net loss of $5 million, or $0.01 per share. For the same quarter a year ago, Tellabs reported revenues of $316.7 million and a GAAP net loss of $14 million, or $0.04 per share.

Non-GAAP earnings of $0.02 per share beat analysts' expectations for a break-even quarter.

Tellabs's third-quarter forecast appears disappointing, however. The company cited the economy -- particularly the European economy -- in saying third-quarter revenues would be $260 million to $290 million. Analysts were expecting $291 million.

The news didn't faze investors at first; Tellabs's stock was up $0.04 (1 percent) at $3.04 in early after-hours trading.

— Craig Matsumoto, Managing Editor, Light Reading