Tekelec Beats Expectations, New $20M Diameter Signaling Router Order

Tekelec pre-announced its Q3 results, saying that it has received a $20 million Diameter Signaling Router related order, the largest Diameter Signaling Router order in its history.


Tekelec now expects orders will be between $66 million and $68 million for the third quarter of 2011 -- ahead of market expectations. The $20 million order was received in early October. Revenues for the third quarter 2011 are expected to be between $103 million and $106 million, bringing the total revenues for the nine months ended September 30, 2011 to between $307 million and $310 million. Due to higher than expected “book-ship�? Eagle 5 revenue, the company expects non-GAAP gross margins for the third quarter 2011 to be in the 67%-68% range and GAAP gross margins for the third quarter to be in the range of 59%-60%.


Tekelec ended the third quarter of 2011 with $270 million in cash and no debt. The company generated $10 million to $13 million of cash flows from operations in the third quarter of 2011 and $58 million to $61 million of cash flows from operations as of the nine months ended September 30, 2011.


Full results are expected November 9.
http://www.tekelec.com