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Technology Stocks : Orckit (ORCT)

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To: srvhap who wrote (732)8/17/1997 10:13:00 PM
From: savolainen   of 1998
 
fujitsu/orctf adsl II chip

Ran into a couple more references to the fujitsu/orckit adsl chip. Interesting reading when combined with the original release... Seems it's a "single chip...modem"..."available..mid '98"... "high volumes" ... "low cost"... "producing...potentially new form factors such as slot-in PC card modems." Sounds good ...

Had only been thinking of this chip's significance in terms of orckit or orckit/fujitsu products. Seems there is another interesting potential angle for revenue for orckit: a percentage of chip sale revenue to other "xdsl vendors". Fujitsu will be selling the chip "commercially" through "Fujitsu Microelectronics' Semiconductor sales channels"

Note the reference in the second article to how "system companies"..can "form a complete ADSL modem" by adding "a micro-processor or microcontroller, plus some memory". If the product performs, would think this chip might be interesting to any xdsler looking for adsl chips. That list of companies could be very interesting... Maybe some big names... In the real long shot/initial entertaining speculation department: that second article makes reference to the BT contract, Fujitsu and Alcatel. Don't think the modems are from Alcatel, isn't fujitsu supplying westell modems....and, what's westell doing for adsl chips?...

The unknown seems to be whether orckit gets a cut of the chip revenue? and if so how much?? Am guessing they cut a good deal...As someone early on in this thread pointed out "I wouldn't want to play mumblety peg with these guys.." (isn't that played with knives?<g>) Seems they would have had leverage: the chip is a "recast(ing of) Orckit's two-chip digital solution and its analog front end, currently based on discrete components, into a 0.35-micron mixed-signal CMOS chip..." Again...it's anyone's guess...maybe time (or the '97 form 20-F) will tell....

As Amadeo pointed out, until it ships it's "vaporware"..Original Release:

"Fujitsu Microelectronics and Orckit Co-operate on Next Generation ADSL II Integrated Circuits

MANCHESTER, UK, August 5, 1997 -- In a step aimed at pleasing xDSL vendors, Fujitsu Microelectronics Ltd. today announced an alliance with Orckit Communications of Israel (NASDAQ: ORCTF) to develop next generation high performance ADSL II chips.

Co-operation between the two companies will result in an ADSL mixed signal Integrated Circuit (IC) which will allow the design of low cost compact modems and line cards based on the DMT standard. ADSL (Asymmetric Digital Subscriber Line) is a transmission technology that enables telecom operators to provide multi-megabit
data and voice access over their existing copper telephone infrastructure.

The Fujitsu/ Orckit ADSL II chip is expected to be commercially available in middle of 1998, just as the ADSL market is expected to take off. The ADSL II device will be available for sale through Fujitsu Microelectronics' Semiconductor sales channels alongside its existing ATM products....

The new IC will be Orckit's third generation development benefiting from their involvement in multiple ADSL field trials and benchmarking tests since Orckit first demonstrated its first generation ADSL modem over two years ago..."
orckit.com

"August 11, 1997, Issue: 966
Section: News

Fujitsu, Orckit team to build ADSL modem

By

Manchester, England - Fujitsu Microelectronics Ltd., based here, and Orckit Communications Ltd. (Tel-Aviv, Israel) are teaming up to produce a single-chip, discrete multitone standard-based asymmetric digital subscriber line (ADSL) modem.

The companies will recast Orckit's two-chip digital solution and its analog front end, currently based on discrete components, into a 0.35-micron mixed-signal CMOS chip. They will also add asynchronous-transfer-mode (ATM) and rate-adaptation features in line with a new definition of ADSL known as "Issue II."

Fujitsu will sell the part commercially and to Orckit. The chip is expected to be commercially available in mid-1998. To form a complete ADSL modem, system companies will need to add a micro-processor or microcontroller, plus some memory.

Fujitsu's network products division is expected to be a primary customer for the chip. Reports from Europe have linked Fujitsu and Alcatel to a potential order from British Telecom for 250,000 asymmetric-digital-subscriber-line modems.

Copyright r 1997 CMP Media Inc."
techweb.com

Telechoice's postscript to fujitsu/orckit press release:
"....TeleChoice believes that the Fujitsu relationship will help Orckit in delivering high volumes of xDSL products in late 1998. The resulting Orckit/Fujitsu transceiver is expected to built with a single chip - producing a lower cost modem and potentially new form factors such as slot-in PC card modems."
telechoice.com
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