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Technology Stocks : Orckit (ORCT) -- Ignore unavailable to you. Want to Upgrade?

To: Bald Man from Mars who wrote (1949)	10/24/1999 6:41:00 PM
From: jay silberman	Read Replies (2) \| Respond to of 1998

some weekend cheer: globes.co.il "Contrary to Earlier Estimates - Orckit Will Not Show Profit This Year" By Adi Mendelson Wall Street investors have had their say about the financial statements published by Orckit at the beginning of the week. In three trading days the shares have fallen 22% to just $30. Now comes the analysts' turn, and they are not sounding too optimistic either. From an update published by Lehman Brothers yesterday, it emerges that a significant change has taken place in projections of Orckit's financial performance in the near future. Contrary to previous estimates, Orckit is not expected to move into profit this year. Lehman Brothers says delays in bringing out Orckit's new chip, which is supposed to reduce considerably the prices of its ADSL modems, will spoil Orckit's earlier plans to show a net profit this year. Lehman Brothers estimates that Orckit's loss per share for the year will be $1.35, which compares with an earlier projection of $0.88. According to Lehman Brothers' forecast, 2000 will also end in a loss for the company, of $0.10 per share. Nevertheless, Lehman Brothers expresses optimism about ADSL sales for Orckit next year, chiefly because of the $100 million (at least) three-year contract signed with Deutsche Telekom, which Orckit won together with its Japanese partner Fujitsu. Lehman Brothers say the contract strengthens Orckit's status in the ADSL market, and indicates that market's latent potential. The investment bank has raised its ADSL sales projection for Orckit next year by $12 million to $137.5 million. It leaves intact its "Buy" recommendation on Orckit's share, as also its target price of $40. Published by Israel's Business Arena on 21 October, 1999