Wednesday July 14, 8:05 am Eastern Time
Company Press Release
SOURCE: Orckit Communications Ltd.
Orckit Reports Record High Revenues for the Second Quarter of 1999; Revenues Increase 47 Percent compared to 1998 Second Quarter
TEL AVIV, Israel, July 14 /PRNewswire/ -- Orckit Communications Ltd.
(Nasdaq: ORCT - news ), today reported record high revenues for the
second quarter of 1999. The total revenues for the quarter ended June
30, 1999 increased by 47 percent to $16.1 million, compared to $10.9
million in the second quarter of 1998. Revenues for the six months
ended June 30, 1999 increased by 76 percent to $30.7 million, compared
to $17.5 million for the same period in 1998.
Net loss for the second quarter of 1999 was $5.6 million, or ($0.32)
per share, compared to a net loss of $3.4 million, or ($0.22) per
share, in the second quarter of 1998. The net loss for the six months
ended June 30, 1999 was $12.1 million, or ($0.71) per share, compared
to a loss of $5.2 million, or ($0.35) per share, for the same period
in 1998. These losses resulted primarily from forward pricing
associated with DSLAM supply agreements.
During the second quarter Orckit continued to deliver its DSLAM
product to GTE and Duetsche Telekom for volume commercial deployment.
In addition, Orckit announced, together with Centillium Technology, a
plan for interoperability the compatibility between the companies'
respective ADSL and G.Lite products. This relationship is part of an
ongoing program to enable leaders in the retail CPE modem industry to
achieve interoperability with Orckit's DSLAM G.Lite ADSL technology.
''The availability of interoperable customer modem products via retail
sales channels is expected to accelerate demand for Orckit's DSLAM
products,'' commented Izhak Tamir, President of Orckit.''
In co-operation with Conexant, this quarter Orckit completed the
design of the ZipWire2(TM) chipset, based on next generation High Bit
Rate DSL (HDSL2) technology. This chipset will allow up to 4.6 Mbps
Internet access and other symmetric data services over a single pair
of telephone wires.
On June 16, 1999 the Company completed a public offering of 2 million
newly issued ordinary shares at a price of $25 per share. The
underwriter for the offering has exercised its over-allotment option
for newly issued 300,000 ordinary shares, expected to close today.
Orckit intends to use the net proceeds from the offering for working
capital and general corporate purposes. ''We, at Orckit, would like
to thank the company's shareholders for their appreciation and
continuous faith in the company,'' noted Mr. Tamir.
Orckit Communications Ltd. (Orckit) is a leading company in the field
of Digital Subscriber Line (DSL) solutions, which enable telephone
companies and Internet Service Providers to optimize the bandwidth
utilization of the ''last mile'' of copper wire in the Local Loop.
Orckit possesses both core silicon expertise and a wide range of DSL
products, including its FastInternet(TM) DSLAM System with ADSL, and
its CopperTrunk® HDSL and VDSL product lines. Orckit has key
strategic alliances with several leading semiconductor companies and
telecom equipment providers. For more information about Orckit and
its DSL solutions, visit Orckit'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.
CONSOLIDATED BALANCE SHEET
(in thousands)
June 30 December 31
1999 1998
(unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $98,994 $9,329
Short-term investments 3,500 32,445
Trade receivables 13,478 7,508
Other receivables 4,298 3,158
Inventories 23,546 17,288
Total current assets 143,816 69,728
Property and equipment, net 4,099 3,303
Total assets $147,915 $73,031
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short term bank credit $25,000 $--
Trade payable 21,876 10,378
Accrued expenses and other 7,395 5,170
Total current liabilities 54,271 15,548
Accrued severance pay, net 247 189
Total liabilities 54,518 15,737
Shareholders' equity:
Share capital 582 525
Additional paid-in capital 126,438 78,323
Accumulated deficit (33,623) (21,554)
Total shareholder's equity 93,397 57,294
Total liabilities and shareholder's
equity $147,915 $73,031
ORCKIT COMMUNICATIONS LTD.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30 June 30
1999 1998 1999 1998
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $16,075 10,913 $30,677 17,461
Cost of revenues 14,547 9,381 28,334 14,359
Gross profit 1,528 1,532 2,343 3,102
Research and development
expenses 4,215 2,973 8,172 5,413
Less - grants 470 670 685 1,454
Research and development
expenses, net 3,745 2,303 7,487 3,959
Selling, general and
administrative
expenses 3,704 2,895 7,666 4,970
Operations loss (5,921) (3,666) (12,810) (5,827)
Financial income, net 336 309 741 611
Net loss $(5,585) (3,357) $(12,069) (5,216)
Net loss per share -
basic and diluted $(0.32) (0.22) $(0.71) (0.35)
Weighted average number
of shares outstanding 17,268 15,042 17,087 14,853
SOURCE: Orckit Communications Ltd. |
