Tekelec joins Acme Packet in projecting growth in 2009. The company beat Wall Street analysts' expectations for its fourth-quarter and year-end financials, but expected purchasers to hold off on buying gear in the first half of 2009.
While orders fell 14 percent in Q408 compared to Q407, Tekelec reported a backlog of $412 million in orders; up from $369 million as of Sept. 30 and indicating strong demand going into 2009. Tekelec earnings hit $0.27 per share, $0.03 higher than Wall Street predicted. Reported earnings for 2008 were $460.6 million with positive cash flow of $106 million.
Cash and cash equivalents of $209.4 million at the end of 2008 translates to a war chest that could be used to acquire other companies in 2009. And the company has a healthy stock, so it could offer an attractive stock and cash deal to privately held companies.
For its own part, Tekelec is taking a cautious approach for the first half of the year, noting that customers have told Tekelec they'll be holding off on buying gear in the first half of 2009.
Tekelec Acquires mBalance - FierceWireless