Tekelec Profits Tumble Despite Revenue Increase

Tekelec, a Calabasas firm that makes telecommunications testing equipment, reported a 67% drop in earnings in its first quarter compared with a year ago, despite record orders and a 5% increase in revenue.

Tekelec said increased expenses for product development and marketing lowered its net income in the quarter that ended March 31 to $478,000, from $1.5 million a year earlier. But revenue was up, to $14 million from $13.3 million, and orders increased 23% from a year earlier.