Tekelec reports solid third-quarter sales, profit

Tekelec posted another strong quarter Wednesday, largely driven by a recovery in product sales in North America.

Based on the sales boost, and a rise in customers orders, the Morrisville technology company increased its guidance for the year, saying per share earnings would be between 95 cents and $1. Previously the guidance had been between 90 cents and 95 cents.

"We had a very strong quarter in very challenging circumstances," said Bill Everett, Tekelec's chief financial officer.

The company said that third-quarter revenue from continuing operations rose to $114.9 million, up 8 percent from the previous year.

Net income from continuing operations for July, August and September was $18.2 million, or 27 cents a share, a 42 percent increase over the same three-month period last year on a per share basis.

In the United States and Canada, the company's single biggest market, third-quarter sales jumped to nearly $50 million from about $34 million last year, as phone companies and Internet carriers are filling product orders placed over the past year.

Tekelec has been virtually recession-proof because the company sells essential software that form the guts of the telecom system. Tekelec makes software that sets up and breaks down phone calls. It also makes software that allows for cell phone owners to use the same phone number when they switch to another phone or plan – a feature called number portability that’s increasingly required by governments around the world.

The company has about 300 customers worldwide, including AT&T, T-Mobile and Verizon Wireless, and employs about 1,100 people, including 675 at its headquarters in Morrisville.

The company's stock climbed to $15.84 on Wednesday, a gain of 59 cents a share.