To All,
Here it is!
Thursday October 30 8:00 AM EST
Company Press Release
Orckit Reports First Profitable Quarter; Third Quarter '97
Revenues Increase 155 Percent
TEL AVIV, Israel, Oct. 30 /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 quarter ended September 30, 1997 increased 155 percent to $7.2 million,
compared to $2.8 million for the third quarter of 1996.
Revenues for the nine months ended September 30, 1997 increased 155 percent to $20.1 million,
compared to $7.9 million for the same period in 1996.
Net income for the third quarter was $108,000, or $0.01 per share, against a net loss of $736,000, or
($0.06) per share, during the third quarter of 1996. The net loss for the nine months ended September
30, 1997 was $680,000, or ($0.05) per share, compared with $2.2 million, or ($0.18) per share, for the
same period in 1996.
''Orckit continues to show improved results, based on expanding HDSL sales, and continuing ADSL,
VDSL and FastInternet DSLAM System sales,'' said Mr. Izhak Tamir, Orckit's President.
Highlights of the quarter include the signing of a definitive agreement with Harris Semiconductor for the
development of a VDSL chip set, and with Fujitsu Microelectronics for the development of next
generation high performance ADSL II chips.
''These strategic alliances have put in place the primary building blocks of Orckit's silicon partner
strategy, and they are a key factor in enabling Orckit to provide a low cost system solution,'' continued
Mr. Tamir. ''We expect silicon partnerships to be a source of revenue by the end of 1998.''
Another notable achievement during the quarter was Orckit's demonstration of the world's first ADSL
modem that can run simultaneously with an ISDN line at the Telecom Inter@ctive exhibition in
Geneva. The first shipment of ADSL over ISDN modems was sent during the quarter to a European
telecom operator.
''The availability of Orckit's ADSL over ISDN solution has provided us with a competitive advantage
and resulted in winning new European trials in the past quarter,'' said Mr. Tamir. For the United States
market, the Company announced the availability of an ADSL modem that can transmit together with
two regular telephone lines, using the DAML (Digital Added Main Line) system.
Right before the quarter ended, Orckit began supplying the American version of its ADSL product that
was jointly developed with Fujitsu Network Communications as part of the SPEEDPORT system.
''This new equipment, designed to meet NEBS requirements, has enabled us to become involved in a
new trial with a major North American carrier, and it has opened the door for us to participate in
additional North American trials in the near future,'' remarked Mr. Tamir. ''We expect the new
Fujitsu/Orckit equipment to begin generating revenues in the current quarter.''
During the third quarter, Orckit provided ADSL systems for six new technical and commercial ADSL
trials around the world. Orckit's ADSL products were demonstrated in three European telecom
operators' booths at the Telecom Inter@ctive Exhibition: Telecom Italia, SwissCom, and France
Telecom.
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. |
