Tekelec Profits Decline, Costs of GTE Deal Cited

Tekelec posted a loss in its second quarter on a 14% drop in revenues.

In the quarter that ended June 30, Tekelec posted a net loss of $1.4 million, compared with a profit of $2.1 million a year earlier. Revenues in the latest quarter were $16.9 million, down from $19.5 million in the same period a year ago.

For its six months, Tekelec posted a net loss of $5.4 million, compared with a profit of $3.5 million a year earlier. Revenues for the six months fell 25% to $28.8 million, down from $38.1 million.

The company said that part of its loss was due to an initial shipment to GTE and nonrecurring costs associated with that deal.

The Calabasas-based company is a maker of diagnostic systems used in computer network switching systems.