Deutsche Bank Securities released a company bulletin of Tekelec today, a company that’s been in the news this morning over the purported potential sell-off of their Switching Solutions Group, which was formed through the acquisitions over the past several years of Santera, Taqua, and VocalData.
TMC’s editorial team is looking into this developing story, but I thought I’d share a bit of what was in the Deutsche Bank report this a.m.
According to the bulletin:
The company announced that they had hired investment bankers and will restructure the unit drastically. This will include the firing of 100 employees and the shutdown of their Plano facility, as well as a significant write-down. In our view, this will likely mean an eventual sale of the business or a shutdown. The company’s Santera, Taqua and Vocal Data units have struggled since Tekelec acquired them.
The report does however position Tekelec’s signaling business as eventually retaking “its rightful role as the focus of shareholder attention.”
To that end, Deutsche Bank is raising their forecast price target for Tekelec’s share price.
And, according to Reuters:
Tekelec said it expects to take charges of about $4 million to $5 million in the fourth quarter related to severance and other costs associated with the job cuts.
It’s also being reported that Tekelec has retained J.P. Morgan Securities to advise on strategic alternatives to leverage its switching technology portfolio.
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