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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: LemonHead who wrote (33282)	7/6/2001 10:39:53 AM
From: The Ox	Respond to of 69853

Heavy exposure in the telecom industry (as you probably know if you've been following it). Revenues are declining substantially, with this guidance they will be down over 25% over the past 2 quarters and with the troubles facing this industry, it's hard to get excited about this company at this time. Tekelec Provides Revised Second Quarter Outlook CALABASAS, Calif., Jul 5, 2001 (BUSINESS WIRE) -- Tekelec (Nasdaq: TKLC chart, msgs) today announced revised financial guidance for its second quarter ended June 30, 2001, primarily as a result of the effects of the economic slowdown on Tekelec's service provider and equipment manufacturer customers, principally in the United States. Based on preliminary financial data, Tekelec's revised financial guidance for the second quarter ended June 30, 2001 includes revenue expectations of $70 million -- $71 million compared with prior guidance of $88 million to $90 million. Pro forma earnings per share for the quarter are now expected to be $0.02 -- $0.03 per diluted share, excluding merger charges. In terms of order activity, the Company expects to report order bookings of approximately 70 million in the second quarter. The Company's revised guidance reflects several unanticipated order delays and project postponement decisions that occurred very late in the quarter, by a number of Tekelec customers reducing capital expenditures in response to the weakened economic environment. Tekelec President and CEO, Michael Margolis, commented, "Near the quarter's end, we witnessed an abrupt belt tightening by customers, resulting in an unanticipated reduction in order activity from our customer base -- both carriers and equipment manufacturers -- that we had been able to largely avoid until now. In response to our reduced business outlook and limited forward visibility, we are moving forward quickly with previously prepared contingency plans to align our cost structure with the reduced spending capabilities of our customers. "Our lower-than-expected results for the quarter, while clearly disappointing, reflect the current macro environment and do not appear to be due to competitive pressures," Margolis continued. "Our products continue to play an integral role in current and next-generation networks, solving critical needs within signaling, call control and diagnostic applications that continue to grow in importance. We fully expect Tekelec to emerge from the current downturn a stronger company, as we have from each of the previous economic cycles throughout our 22-year history as a telecommunications supplier."