MORRISVILLE, N.C. — Telecom gear manufacturer Tekelec (NASDAQ: TKLC) surprised analysts Wednesday with an $89.3 million profit, or $1.33 per share, in the third quarter.
However, not all the news for the company in its quarterly earnings report was positive. Tekelec said it was cutting its workforce in Plano, Texas by 104, not filling 22 open positions and not retaining 25 contractors.
Tekelec also said it has retained JP Morgan Partners to find “strategic opportunities” for the switching unit based in Texas.
Light Reading, a Web site devoted to networking gear coverage, speculated that Tekelec would sell the switching unit and focus on its signaling business.
Overall, Tekelec reported revenues of $155.2 million in the quarter, topping estimates of $129.9 by analysts polled by Thomson Financial. Tekelec reported revenues of $108.4 million in the same quarter of 2005.
Much of Tekelec’s profit came from the sale of its IEX Contact Center operation for $177.5 million.
Analysts had expected Tekelec to report a loss of 3 cents per share.
The quarterly report sparked a 7 percent surge in Tekelec shares to $15.51 in after-hours trading Wednesday night.
For details, see: biz.yahoo.com/bw/061101/20061101006163.html?.v=1
