Tekelec stock reaches 52-week high after stronger than expected earnings report

Morrisville, N.C. — Shares in telecommunications gear maker Tekelec (Nasdaq: TKLC) soared 9.5 percent Tuesday after the company beat Wall Street expectations for quarterly earnings.

Tekelec closed at $15.98, up $1.38. Earlier in the day Tekelec shares did reach a 52-week high of $16.17.

In trading on Wednesday, Tekelec shares fell 15 cents to $15.83.

For the first quarter, Tekelec revenues increased 9 percent to $118.2 million. Orders for new gear also increased 4 percent to $82.4 million.

Earnings hit 19 cents per share, but were 25 cents per share outside of one-time expenses. Analysts polled by First Call had projected a profit of 16 cents.

For the year, Tekelec projects revenues of between $455 million and $470 million. The company also forecast profits of between 75 and 80 cents per share. Analysts projected revenues of nearly $462 million and a profit of 76 cents per share.

“Operating margins and cash flows from continuing operations were particularly strong,” said Tekelec Chief Executive Officer Frank Plastina. “Also, we were pleased with the level of new orders we generated in the first quarter following the very strong orders received during the fourth quarter of 2007. In fact, we continued to extend our footprint worldwide by adding seven new customers during the quarter."