Morrisville tech company to cut 15 percent
Posted May 5, 2011 9:08 a.m. EDT
Updated May 5, 2011 10:10 a.m. EDT
Morrisville, N.C. — Morrisville-based Tekelec (NASDAQ: TKLC) plans to cut up to 15 percent of its workforce as part of the continued restructuring effort announced earlier in the year. In February, Tekelec announced an aggressive cost-cutting strategy but said layoffs would be a last resort.
The company has approximately 1,250 employees worldwide in 25 offices. The Morrisville headquarters employs 675. It has not yet released specifics on how many jobs would be lost in the Triangle.
“We also had to make some tough decisions during the quarter and initiated changes to improve the operating performance of the company by aligning our cost structure,” said Krish Prabhu, interim president and CEO.
Tekelec also forecast in February that a tough year lie ahead for the company in 2011; with revenues estimated to be between $360 and $400 million. That's well below 2010's revenues of $424 million.
The company announced earnings for the first quarter 2011 Thursday. Revenue was $107.8 million, down 7 percent from first quarter 2010. Orders are up 22 percent from the same period in 2010, suggesting that the company's move into next-gen technology is gaining ground.
As the company tries to align costs with expected growth, job reductions could continue through the end of 2011.
Tekelec shares closed Wednesday at $8.15, up 13 cents. The stock has lost more than half its value in the past year.