Profit Jumps Tenfold in Tekelec’s 4th Quarter

Tekelec saw its profit jump more than tenfold in its fourth quarter, on a 40% rise in revenue.

The Calabasas-based firm posted net income of $2.6 million in the quarter, compared to a $233,000 profit a year earlier. Revenue in the latest quarter rose to $24 million, up from $17.2 million a year ago.

The company sells diagnostic systems used for network switching systems by communications companies. Tekelec said that in its fourth quarter its orders jumped 43% to $24.9 million, compared to a year earlier.

For the full year, Tekelec posted a net loss of $2.5 million, compared to a profit of $6.3 million in 1995. Revenue last year was $72.1 million, down 4% from $75.3 million a year earlier.

Tekelec also said that it has started searching for a new chief executive to replace Philip Alford, who resigned in December.

The company hopes to have a new top executive in place by summer.

It also said that Allan Toomer, the company’s president, plans to retire at the end of this year, although he will remain on Tekelec’s board of directors.