Tekelec Quarterly Earnings Drop 57%; Revenue Up

Tekelec, a Calabasas maker of equipment used in testing telecommunications products, said its second-quarter earnings tumbled 57% from a year earlier despite a 12% increase in revenue.

Tekelec’s net income for the three months that ended June 30 dropped to $563,000 from $1.3 million a year ago, but its revenue climbed to $8.25 million from $7.40 million. For the first half of this year, Tekelec’s profit fell 25% to $1.81 million from $2.40 million, and its six-month revenue rose 23% to $17.4 million from $14.1 million.

Tekelec blamed the reduced earnings on higher costs and less than expected growth in revenue. The costs were associated with the introduction of a product, and higher engineering and customer service expenses.