CALABASAS COMPANY'S STOCK GAINING ALTITUDE; TEKELEC SHARES 6 TIMES HIGHER THAN '96 CLOSE.Byline: Dave McNary McNary may refer to:
Shares of Calabasas-based Tekelec Tekelec, Inc. (NASDAQ:TKLC), (founded 1979 in California, now headquartered in Morrisville, North Carolina, USA) is an industry leader building smart carrier networks through an innovative combination of signaling, switching, and applications. surged nearly 10 percent Wednesday Wednesday: see week. after its third-quarter financial results easily beat Wall Street estimates, continuing its super-heated performance this year. Stock of the communications equipment specialist rose $4.25 to a record $47.125 on volume of 1.21 million shares, more than triple its three-month average. The issue is now nearly six times the price of its last trade of 1996 at $7.875. The company's third-quarter profits, announced after the market closed Tuesday, were $6.1 million, or 21 cents a share, before an $8.97 million tax benefit, and were well above the consensus estimate of 13 cents a shares. The results were up sharply from earnings of $275,000, or 1 cent a share, in the year-ago period. Sales jumped $36.1 million, up 86 percent from the 1996 quarter and 44 percent ahead of the second quarter. Although the company warned that its quarter-to-quarter sales growth will not be as high in the fourth quarter, Soundview Financial reiterated a ``short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. buy'' recommendation Wednesday. Brian Modoff, a BT Alex Brown Alex Brown may refer to:
``The Tekelec switch has the best price-performance in the industry,'' said Modoff, who has a 12-month target price of $60 on the stock. ``They've done extremely well in signing new contracts.'' During the quarter, Tekelec received switching orders from Daewoo Telecom in Korea, Bell Atlantic, SK Telecom in Korea, Southern New England Telephone Verizon New England, Inc., formerly New England Telephone & Telegraph Co., is a Bell Operating Company that serves the majority of New England. It is an operating unit of Verizon Communications. New England Telephone & Telegraph Co. and Iusacell Mexico. Total orders rose 86 percent over the 1996 period with $32.9 million of switching products and $14.2 million of diagnostic products. Switching products sales for the third quarter more than doubled to $22.5 million from $8.4 million in the 1996 period. CAPTION(S): Chart Chart: (Color) METEORIC me·te·or·ic adj. 1. Of, relating to, or formed by a meteoroid. 2. Of or relating to the earth's atmosphere. 3. RISE Dail News |
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