Tekelec on a Tear

Tekelec is something of a stock market darling Wednesday as its share price climbed $1.20 (14.4%) to $8.58 on news that its third-quarter revenues and earnings would be higher than expected and expectations that its full-year guidance would be raised.

The vendor forecasts third-quarter revenues to be $103 million to $106 million and non-GAAP earnings to be 16 cents to 20 cents, compared with the $92.6 million of revenues and 6 cents of non-GAAP earnings that Wall Street had, on average, been expecting.

Tekelec said it also expects to raise its full-year guidance when it unveils its full third-quarter results on Nov. 9.

In addition, the company says it has received a $20 million Diameter Signaling Router (DSR) order, its largest since it launched the product in October 2010. (See Tekelec Launches Signaling Router.)

That's worth noting as it could signal the start of a meaningful market for Diameter traffic routers/controllers, which will become increasingly important as policy management and charging information needs to traverse multiple networks, particularly Long Term Evolution (LTE) networks. (See LTE Signaling Woes Ahead?)

This is Tekelec's fourth DSR order, the company tells Light Reading. The other three are with Verizon Wireless , MetroPCS Inc. (NYSE: PCS) (see this press release) and "a U.S. tier-one operator." (See Tekelec Wins LTE Deal.)

Other independent vendors (as in, not the major network equipment vendors) looking to pick up Diameter routing deals include Acme Packet Inc. (Nasdaq: APKT), IntelliNet Technologies Inc. , Openet Telecom Ltd. and Traffix Systems . (See Traffix Opens LTE Diameter Interop Lab, Acme Unveils Policy Exchange Controller for LTE and Openet Intros Context Router.)

— Ray Le Maistre, International Managing Editor, Light Reading

digits 12/5/2012 | 4:50:55 PM
re: Tekelec on a Tear

This article has been updated to reflect that Tekelec has four deals for its Diameter Signaling Router. The new deal is not the Verizon Wireless deal - that is separate. 

The four DSR deals the company has so far suggests its on the right track with its product!

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