Sales boost Tekelec earnings

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

Based on the sales boost and a rise in customer 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 BillEverett, Tekelec's chieffinancial 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 forms the guts of the telecom system.

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.