Tekelec Stock Tumbles After Talk of Profit Dip
Tekelec’s common stock tumbled after the Calabasas company said it expects to report a lower second-quarter profit than previously anticipated.
The maker of telecommunications-testing equipment cited “lower-than-expected revenues from the company’s international subsidiaries, particularly in Japan” for the earnings decline.
After the announcement, Tekelec’s stock plunged $2.75 a share, to $10.75, in the next day’s trading, and on Monday it closed at $11.25 a share on the NASDAQ market, up 75 cents.
Tekelec, which said it will formally report its second-quarter results late this month, earned $1.42 million on revenue of $14 million in the second quarter of 1991.
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