) to hold from sell.
Analyst Brian Modoff says second-quarter results were good, with $62.9 million in revenues vs. his $59 million estimate, and 7 cents pro forma earnings per share vs. his 5 cents estimate. He says Tekelec had a greater mix of international revenues: Of five new customers, three were international.
He notes wireless was 52% of revenues in the second quarter with Cingular the only customer at greater than 10%. Modoff sees 33 cents 2003 pro forma earnings per share, 43 cents for 2004, and 60 cents for 2005. He raised his $8 12-month target to $12, based on 20 times the 2005 earnings per share estimate.