August 6, 2008 / 1:31 PM / 10 years ago

UPDATE 2-Tekelec Q2 profit tops Street, raises '08 earnings view

(Recasts; adds details, outlook from conference call, share movement)

Aug 6 (Reuters) - Tekelec TKLC.O, a maker of network switching systems, posted a quarterly profit that topped market estimates, helped by a 45 percent rise in orders, and raised its 2008 earnings outlook.

The company, whose shares were up about 7 percent before the bell, also lifted the lower end of its revenue outlook range for the year.

For the second quarter, Tekelec’s net income was $15.3 million, or 22 cents a share, compared with a net loss of $7.8 million, or 11 cents a share, a year earlier. Revenue rose about 6 percent to $116.4 million.

Excluding certain items, it earned 23 cents a share from continuing operations.

Analysts expected earnings of 15 cents a share, before special items, on revenue of $111.3 million, according to Reuters Estimates.

The Morrisville, North Carolina-based company, whose customers include AT&T Inc (T.N) and Verizon Communications Inc (VZ.N), had orders of $122.9 million for the quarter.

For 2008, the company forecast non-GAAP earnings of 82 cents to 86 cents a share from continuing operations, up from its prior view of 75 cents to 80 cents a share.

It narrowed its revenue outlook range to between $460 million and $470 million. It had previously forecast $455 million to $470 million.

Analysts on average were expecting earnings of 80 cents a share, before special items, on revenue of $467.8 million.

Tekelec shares rose $1.17 to $17.31 in trading before the bell. They closed at $16.14 Tuesday on Nasdaq. (Reporting by Deepti Govind in Bangalore; Editing by Himani Sarkar)

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