Tekelec a leading developer of high-performance network applications for next-generation fixed, mobile and packet networks, announced that its board of directors approved a stock repurchase program that authorizes the company to repurchase up to $50 million worth of the company's common stock.
Frank Plastina, president and chief executive officer of Tekelec, stated, “After a review of Tekelec's financial position and cash flow projections, our board concluded that a stock repurchase program is consistent with our commitment to deliver value to our shareholders.”
The repurchases will be funded from available working capital. As of June 30, 2007, Tekelec had cash, cash equivalents and short-term investments of approximately $464.8 million and as of July 30, 2007 approximately 71.3 million shares of Tekelec common stock outstanding.
Stock repurchases under the program are to be made through a Rule 10b5-1 plan. The timing, duration, and actual number of shares repurchased will depend on a variety of factors, including price, regulatory requirements, and other market conditions. The company may terminate the repurchase program at any time.
Organizational Realignment
Tekelec continues to integrate capabilities across its product portfolio and announced today that it will combine its two current business units – the Network Signaling Group (NSG) and Communications Software Solutions Group (CSSG) – to form a functional organizational structure. The organizational realignment is designed to speed decision making and increase the focus on delivering solutions that support the company’s direction of product integration. Ronald J. de Lange, current president and general manager of NSG, will be responsible for the company’s product development and marketing efforts. Eric Gehl, current president and general manager of CSSG, will support the immediate realignment of the new organization in a transitional role.
FORWARD-LOOKING STATEMENTS
Certain statements made in this press release are forward looking, reflect the Company's current intent, belief or expectations and involve certain risks and uncertainties. The Company's actual future performance may not meet the Company's expectations. As discussed in the Company's Quarterly reports on Form 10-Q for the 2007 first and second quarters, its Annual Report on Form 10-K for 2006 (the “2006 Form 10-K”) and its other filings with the Securities and Exchange Commission (the “Commission”), the Company's future operating results are difficult to predict and subject to significant fluctuations. Factors that may cause future results to differ materially from the Company's current expectations, in addition to those identified in the Company’s 2006 Form 10-K and its other filings with the Commission, include, among others, the risk that the Company will not realize all the benefits of its realignment and integration activities; the risk that the Company's sales cycle will lengthen as customers evaluate current technology and anticipate technology shifts; delays in new product introduction and slower than anticipated customer orders related to such products; the risk that continued service provider consolidation will require additional review of capital expenditures and lengthen their procurement cycle; the risk that the share repurchase program will not be fully executed or will be terminated prior to completion, and the uncertainties related to the timing of revenue recognition due to the increasing percentage of international and new customer orders in the Company’s backlog. The Company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.-Teletec
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