By WRAL Tech Wire
MORRISVILLE, N.C. – Troubles continue at Tekelec (Nasdaq: TKLC) this morning.
According to sources, Tekelec is expected to announce major layoffs on Thursday as the Morrisville company deals with falling revenue and rising operating costs. The networking gear and software company also is contending with slipping sales and declining confidence on Wall Street.
Tekelec has been forced to cut its financial projections three times while the stock has lost more than half its value over the past year.
In January, Tekelec CEO Frank Plastina abruptly resigned after five years with the company. The company is still searching for a full-time chief executive as it is being run by interim CEO Krish Prabhu, a Tekelec board member since 2008.
Tekelec will lay out its turnaround strategy and restructuring to Wall Street investors and analysts as it releases first-quarter results this morning.
In February, Tekelec announced an aggressive cost-cutting strategy but said layoffs would be a last resort.
Tekelec also forecasted in February that a tough year lie ahead in 2011; with revenues estimated to be between $360 and $400 million. That’s well below 2010’s revenues of $424 million.
Tekelec has approximately 1,250 employees worldwide – 675 in Morrisville.
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