Tekelec Reports Profits Triple in 4th Quarter

Tekelec said its fourth-quarter profit nearly tripled from a year earlier, when the Calabasas company’s earnings were hurt by its decision to drop two product lines.

Tekelec, which makes testing equipment for the telecommunications industry, said its net income for the quarter that ended Dec. 31 rose to $1.47 million, or 36 cents a share, from $500,000, or 13 cents a share, a year earlier. Sales soared to $9.34 million from $5 million.

When Tekelec discontinued the two product lines a year ago, it took a $381,000 after-tax charge that depressed its earnings.

For all of 1988, Tekelec’s profit jumped to $5.35 million, or $1.31 a share, from $749,000, or 20 cents a share, in 1987. Annual sales nearly doubled to $32.8 million from $17 million.