Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) has run its eyes over Nortel Networks Ltd. 's optical assets but isn't planning on making a bid for them, CEO Rob Pullen revealed today during his company's second-quarter earnings conference call. (See Tellabs Reports Q2.)

"We looked at Nortel's assets but are not considering them," stated Pullen when asked by financial analysts whether a bid for Nortel's Metro Ethernet Networks (MEN) division was a possibility.

Tellabs is one of the companies that Light Reading identified as a possible bidder for MEN, especially after Pullen revealed a few months back that he has been "examining acquisitions." Now we can strike it off the list. (See Who's Waving Their Wad at Nortel’s MEN? and Tellabs Goes Shopping .)

That still leaves Pullen with plenty to occupy him. Tellabs today reported revenues of $385 million, roughly in line with expectations, and earnings after one-time costs of 8 cents per share, slightly better than Wall Street had predicted. The vendor's sales numbers, though, were bumped up by revenues from two data product deals that have just received "customer acceptance," meaning the equipment was shipped in previous quarters.

There are signs of slightly better trading conditions, though, as Pullen noted that new order volumes were improving, and that third-quarter revenues are set to be at the same level as, or slightly better than, the second quarter's sales.

— Ray Le Maistre, International News Editor, Light Reading