Tekelec Rings True at Cingular
Cingular has just named the lead suppliers for its 3G mobile network buildout, including Siemens Communications Group (see Cingular Confirms 3G Trio).
Tekelec, say a number of analysts, was part of the Siemens bid, and looks set for several years of revenues from delivering its media gateway product to the U.S. wireless operator.
In a research note issued today, CE Unterberg Towbin analyst Rich Church reckons Tekelec could see revenues from Cingular "in mid-to-late 2005, possibly in the mid-single-digit millions exiting 2005. In 2006, we would expect the revenue contribution to ramp, with much of the work being completed in two-to-three years."
Church maintains a Buy rating on Tekelec's stock.
But analyst reaction has been mixed. The team at Robert W. Baird & Co. Inc. downgraded the stock from Outperform to Neutral, and set a target price of $23. But analysts at Janney Montgomery Scott LLC reiterated their Buy rating, and raised their target price to $26 from $24.
"We have not provided financial guidance on this deal and the reported numbers are analyst speculation," says a Tekelec spokeswoman, in an email to Light Reading.
The vendor's share price is down today 81 cents, more than 3 percent, at $22.60.
— Ray Le Maistre, International News Editor, Light Reading