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

To: shlomi cohen who wrote (1321)	6/30/1998 6:22:00 PM
From: savolainen	Read Replies (1) \| Respond to of 1998

[orctf as another eci] Hi shlomi, thanks for your thoughts on clal and orctf, and must admit, i like the idea of orctf as another eci ... with a couple of breaks, they could be on their way ... also would not be surprised to see pair and eci hook-up, as you say the fit is pretty good... looking back at the secondary, it seems orctf may have had some great news to release... seems to me that they probably got the lions share of the recent dt adsl tender, and were hoping (and probably planning) to release it to help on the pricing... am guessing that others (dt?), in a position to call the shots, vetoed the news release at the last minute ... and orctf had to live with it... was skimming my notes from the april conference call when i noticed that tamir made specific reference to a 70,000 line tender out at the time (and the largest in specific numbers of lines)... the same number mentioned in the (following) globe's article "unpublished" later in the day it appeared... the detail in the article seems far too specific to be simply mis-statements, seems more likely someone jumped the gun, and had to beat a hasty retreat... the article mentions that orctf "announced" a new contract, an announcement that to my knowledge never happened... the following is the complete (missing) article... doing the "rough" math... 70% of $30 million seems like more or less another $20 million for orctf... 20 mil here and 20 mil there can add up to real $... also orctf working with both lu and fujitsu as orctf "strategic partners" for dt would seem to have interesting implications... any thoughts? s ----- Tuesday , Jun 16, 1998 Sun-Thu at 18:00 (GMT+3) Stock Market News Orckit Completes $47 Mln Second Issue By Yoav Yitzhak and Ami Ginsburg Despite the pessimistic atmosphere that prevailed on Wall Street last night, which pulled the share price down 5%, the owners of the controlling interest in Orckit decided to go ahead with the company's second issue in the US. The share price in the issue was set at $18, in line with the price at which the share closed at the end of trading last night. Orckit issued two million new shares, and raised $36 million gross, while the parties at interest in the company added an offer for sale of 600,000 shares worth $10.8 million. The issue was therefore worth an overall $46.8 million, 22% less than the $60 million originally planned, given the price of $20 at which Orckit stood on the day the prospectus for the second issue was published. Orckit's decision to make the issue despite the market conditions indicates that the company needed to raise money more than its management was at first prepared to acknowledge. "We were very surprised at the success of the issue, which went ahead despite yesterday's difficult market conditions," company general manager Itzik Tamir said today. When the issue prospectus was published a month ago, Orckit's management hinted that the aim of the money raising exercise was to have cash in reserve, in the hope that it would be needed to fulfill the large orders expected in the event that that the company won a series of tenders in which it participated for the supply of fast digital modems of the ADSL type. When the process of the Orckit issue began, it already had a large contract it won together with strategic partner Fujitsu to supply ADSL modems to US telephone company GTE. Last month Orckit won two further, smaller contracts, one to supply ADSL modems to Telia of Sweden, and the other for $20 million worth of HDSL modems to Deutsche Telekom. Yesterday, at the time of the issue, Orckit had another bon-bon for investors. The company announced another contract to start supplying ADSL modems to Deutsche Telekom. The first stage of the deal is for installations for 70,000 telephone lines, and it will be shared between two or three companies. The financial value of a tender of this size should be some $30 million. Orckit bid in the tender with three strategic partners, Fujitsu, Lucent, and a third company whose name has not been released. About 70% of the equipment supplied in these projects will come from Orckit. Published by Israel's Business Arena on June 16, 1998 (the following link used to lead to this article, but no longer does...) globes.co.il