Tekelec (TKLC) filed Quarterly Report for the period ended 2009-09-30.
TEKELEC Inc. designs manufactures markets and supports networksystems products diagnostics systems and selected service applications fortelecommunications networks and call centers. The company's customers include telecommunications carriers network service providers equipment manufacturers and call center operations. Tekelec has a market cap of $1.02 billion; its shares were traded at around $15.25 with a P/E ratio of 18.2 and P/S ratio of 2.2.
Highlight of Business Operations:
25 Operating Income from Continuing Operations increased by $6.4 million from $15.0 million in the third quarter of 2008 to $21.4 million in the third quarter of 2009, primarily due to (i) higher gross margins of $4.6 million as a result of the overall increase in revenues and a higher portion of overall revenues being derived from our higher margin number portability product and warranty services, and (ii) a reduction in operating expenses of $1.8 million. The year-over-year decline in operating expenses during the third quarter of 2009 is due principally to cost reduction measures put in place in response to the economic downturn and lower incentive compensation.
For the nine months ended September 30, 2009, operating income increased by $10.9 million from $48.1 million for the nine months ended September 30, 2008 to $59.0 million for the nine months ended September 30, 2009. The year-over-year increase was due to an improvement in gross margins of $4.6 million for the reasons discussed above, and a reduction of $6.3 million of operating expenses that occurred as a result of the 2008 year-to-date results including a one time expense of $2.7 million associated with our acquisition of Estacado Systems, with the remaining reduction of expenses principally due to a reduction in operating expenses as a result of our cost control initiatives and lower incentive compensation.
Diluted Earnings per Share from Continuing Operations increased from $0.13 per share in the third quarter of 2008 to $0.14 per share in the third quarter of 2009 and decreased from $0.52 per share in 2008 to $0.47 per share in 2009 on a year-to-date basis. Our income from continuing operations for the third quarter of 2009 was negatively affected by the $10.8 million, or $0.16 per share, loss related to the impairment of our investment in Genband, which was offset by improved operating performance across the majority of our other operating metrics (i.e., revenues, operating margins, etc.), and lower income tax expense for the quarter. Income tax expense decreased due to lower income for the quarter, as well as the reversal of a $1.0 million valuation allowance previously recorded in the second quarter of 2009 with respect to the impairment of our investment in Genband.
Cash and Cash Equivalents increased during the nine months ended September 30, 2009 by $57.1 million, or 27%, primarily due to: (i) cash inflow from operating activities of $44.8 million, (ii) proceeds from redemptions of ARS securities of $9.3 million and from the sale of our investment in Broadsoft for $7.3 million, and (iii) proceeds from the issuance of common stock under our equity compensation plans of $9.7 million. Partially offsetting these inflows were purchases of property and equipment of $14.6 million.
26 Working Capital increased by $183.5 million, or 87%, from $210.4 million as of December 31, 2008 to $393.9 million as of September 30, 2009, primarily due to (i) the reclassification of our auction rate securities and Put right aggregating $98.4 million from long-term to short-term assets, (ii) cash flows from operations of $44.8 million, and (iii) proceeds from sales and maturities of investments of $16.6 million, and (iv) proceeds from issuances of our common stock under our equity programs aggregating $9.7 million.
Shareholders' Equity increased by $51.9 million in the nine months ended September 30, 2009 from $504.8 million as of December 31, 2008 to $556.8 million as of September 30, 2009, due primarily to: (i) net income of $31.5 million for the period; (ii) proceeds from the issuance of common stock under our equity compensation plans of $9.7 million; and (iii) an increase in common stock resulting from stock-based compensation of $10.3 million which is included in the current period net income.
Rate This Article: |
  |