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

To: shlomi cohen who wrote (1024)	4/2/1998 7:00:00 AM
From: John F. Dowd	Read Replies (1) \| Respond to of 1998

Dear SC: I hope you weren't one of those special people privy to this information earlier yesterday when the stock took a dump in the face of a lot of good speculative background news. Thursday, April 2 6:01 AM ET TEL AVIV, April 2 /PRNewswire/ -- Orckit Communications (NASDAQ:ORCTF) announced today estimated revenues of approximately $6.5 million for the quarter ended March 31, 1998, an increase of approximately 25% compared to revenues of $5.2 million for the quarter ended March 31, 1997. The net loss for the quarter ended March 31, 1998 is expected to be approximately $1.9 million, or ($0.13) per share, compared to a loss of $530,000, or ($0.04) per share, for the quarter ended March 31, 1997. Final results for the quarter ended March 31, 1998 are expected to be announced during the last week of April 1998. During the first quarter of 1998, the Company invested significant efforts in tailoring its ADSL-based FastInternet' DSLAM system to the needs of specific carriers. Orckit's involvement in field trials with several US and Western European operators resulted in an increased cost of revenues and research and development expenses that were not offset by government research and developments grants. "Our revenues are increasing but the prices for our DSL products has resulted in an overall lower margin" remarked Mr. Izhak Tamir, President of Orckit. "The supply of Orckit's FastInternet system in Europe, and together with Fujitsu Network Communications in the US, has increased our need to invest in cost reduction and development of new features in order to meet specific carriers' requirements. We are adding more features to enhance our ADSL-based products according to end-user demand." "We believe that our investment in research and development enables Orckit to quickly respond to carriers' needs in today's field trials and better position our products with respect to expected large-scale deployment tenders." Someone (quite a few someones) knew about this and it confirms my suspicion that we weren't ahead of the insiders but we were behind and were indeed missing something. See my earlier post-#1019. I guess you aren't as close to this outfit as others are unless you were one of yesterday's sellers. There comments also beg the question of whether this outfit has enough real financial smarts to live outside of the womb of funny money government grants Incredulous, JFD