[ORCTF Q4 results]
Orckit Reports Revenues Doubled for 1997
TEL AVIV, Israel, Jan. 26 /PRNewswire/ -- Orckit Communications
Ltd. (NASDAQ:ORCTF), a leader in the development, manufacture and
marketing of Digital Subscriber Line systems and modems, today
reported that revenues for the year ended December 31, 1997 increased
101 percent to $27.5 million, compared to $13.7 million for the year
ended 1996.
Revenues for the fourth quarter ended December 31, 1997 increased
27.9 percent to $7.4 million, compared to $5.8 million for the fourth
quarter of 1996.
The net loss for the year ended December 31, 1997 was $158,000,
or ($0.01) per share, compared with a net loss of $3.1 million, or
($0.25) per share, for the year ended December 31, 1996. Net income
for the fourth quarter was $522,000 or $0.04 per share, against a net
loss of $912,000, or ($0.06) per share, for the fourth quarter of
1996.
"The fourth quarter wrapped up 1997 on a positive note for our
partnership strategy, ADSL sales, and our bottom line," said Izhak
Tamir, President of Orckit. "We have been concentrating on cost
reduction in our products, and we have greatly succeeded in that
respect."
A significant accomplishment during the fourth quarter was the
selection of Orckit's DSLAM system, together with Fujitsu Network
Communications, by Sprint for a field trial. "Until recently, US
telecom operators were lab-testing our European-style central office
equipment. Sprint is the first major US operator to select our new
US-oriented equipment on a competitive basis for use on their
telephone lines, and the results have been positive," remarked Mr.
Tamir. "Sales of our FastInternet DSLAM system have increased
during the past quarter."
Building on its success in Europe, Orckit's FastInternet DSLAM
system was selected for a 1,000 line ADSL trial in Holland together
with Lucent Technologies earlier in the quarter. PTT Telecom is the
fifth Western European operator to select Orckit's equipment for ADSL
trials.
Culminating a year of key strategic partnership announcements,
Orckit announced during the fourth quarter its alliance with Rockwell
Semiconductor Systems for the development of HDSL2 chips, and its
marketing, development and manufacturing partnership with Siemens
Public Communication Networks Group for incorporation of Orckit's
VDSL solution into Siemens' Broadband system.
"Our involvement in the HDSL2 market for advanced 2 Mbps
transmission is an opportunity for Orckit to penetrate the North
American market," said Mr. Tamir. "We expect HDSL2 to be a cost-
effective integrated solution together with SONET fiber systems. Our
exclusive alliance with Fujitsu Network Communications, a leader in
the SONET market, provides us with a direct entry into this market."
Orckit Communications develops, manufactures and markets a wide
range of high-speed local loop communications systems, including HDSL
(High Bit Rate Digital Subscriber Line), ADSL (Asymmetric Digital
Subscriber Line), SDSL (Symmetric Digital Subscriber Line) and VDSL
(Very High Bit Rate Digital Subscriber Line). Orckit is an active
participant in many standards bodies concerning ADSL. Dan Arazi,
Executive VP Marketing and Sales, is on the Board of Directors of the
ADSL Forum, and Nigel Cole, VP new Business Development, is the Chair
of the Technical Committees of the ADSL Forum.
Orckit is a strategic partner of Fujitsu Network Communications in
North America. For more information about Orckit or its xDSL
technologies, interested parties can visit the company's web site at
orckit.com.
Certain matters discussed in this news release are forward-looking
statements that involve a number of risks and uncertainties
including, but not limited to, risks in product development plans and
schedules, rapid technological change, changes and delays in product
approval and introduction, customer acceptance of new products, the
impact of competitive products and pricing, market acceptance, the
lengthy sales cycle, proprietary rights of the Company and its
competitors, risk of operations in Israel, government regulation,
dependence on third parties to manufacture products, general economic
conditions and other risk factors detailed in the Company's United
States Securities and Exchange Commission filings.
ORCKIT COMMUNICATIONS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
(Unaudited) (Unaudited) (Audited) (Audited)
Revenues $7,440 $5,819 $27,547 $13,716
Cost of revenues 4,387 4,024 17,234 8,742
Gross profit 3,053 1,795 10,313 4,974
Research and
development expenses 2,363 1,582 7,243 5,096
Less - grants 1,529 536 2,896 1,776
Research and development
expenses, net 834 1,046 4,347 3,320
Selling, general and
administrative expense 2,117 1,784 7,613 4,841
102 (1,035) (1,647) (3,187)
Discharge of royalty
commitment to
BIRD foundation, net -- 330 -- 330
Income (Loss) from
operations 102 (1,365) (1,647) (3,517)
Financial income, net 420 453 1,489 504
Share in losses of
associated company -- -- -- (93)
Net income (loss) $522 $(912) $(158) $(3,106)
Net income (loss) per share $0.04 $(0.06) $(0.01) $(0.25)
Weighted average number
of shares outstanding 14,606 14,164 14,387 12,446
ORCKIT COMMUNICATIONS LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
1997 1996
(Audited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 4,130 $ 32,378
Short-term investments 26,100
Trade receivables 6,008 5,590
Other receivables 2,567 2,245
Inventories 7,144 6,177
Total current assets 45,949 46,390
Property and equipment, net 1,839 1,173
$ 47,788 $ 47,563
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank credit $ 110 $ 157
Accounts payable 4,240 4,006
Accrued expenses and other 3,597 3,503
Total current
liabilities 7,947 7,666
Unearned income -- 195
Accrued severance pay, net 225 237
Total liabilities 8,172 8,098
Shareholders' equity:
Share capital 466 452
Additional paid-in capital 44,955 44,660
Accumulated deficit (5,805) (5,647)
39,616 39,465
$ 47,788 $ 47,563
SOURCE Orckit Communications Ltd.
-0- 01/26/98
/CONTACT: Izhak Tamir, President of Orckit, 011-972-3-694-5269;
European Public Relations, Charlotte Gutman of CGP, 011-32-2-375-2100;
US Investor Relations, Katerina Charalambous of Anne McBride Co.,
212-983-1702, for Orckit; or US Public Relations, Bob Gold of Bob
Gold & Associates, 310-784-1080/
/Web site: orckit.com |
