Tuesday July 21, 8:05 am Eastern Time
Company Press Release
SOURCE: Orckit Communications Ltd.
Orckit Announces Quarterly Revenues Raised 42
Percent to $10.9 million
TEL AVIV, Israel, July 21 /PRNewswire/ -- Orckit Communications Ltd. (Nasdaq:
ORCTF - news) today reported revenues for the quarter ended June 30, 1998 increased
42 percent to $10.9 million, compared to revenues of $7.7 million for the second quarter
1997.
Revenues for the six months ended June 30, 1998 increased 35 percent to $17.4 million,
compared to revenues of $12.9 million for the same period in 1997.
The net loss for the second quarter was $3.4 million, or $0.22 per share, compared to a
net loss of $236,000, or $0.02 per share, during the second quarter of 1997. The net loss
for the six months ended June 30, 1998 was $5.2 million, or $0.35 per share, compared
to $788,000, or $0.06 per share, for the same period in 1997.
Revenues from ADSL products nearly tripled in the quarter ended June 30, 1998,
compared to the quarter ended March 31, 1998, due to commercial deliveries to US
accounts (together with Fujitsu Network Communications), and European accounts.
During the second quarter, the Company raised $34.3 million, in a follow-on offering
that was priced at $18 per share. Of the 2,600,000 ordinary shares sold in the offering,
2,000,000 shares were offered by the Company and 600,000 shares were offered by
selling shareholders. The lead manager of the offering was BT Alex Brown, with
co-managers CIBC Oppenheimer, NationsBanc Montgomery Securities LLC and Salomon
Smith Barney.
''We thank our shareholders for their support in the follow-on offering. The funds
raised will facilitate our meeting market demand for DSL products,'' said Izhak Tamir,
Orckit President.
Orckit Communications is a leading company in the field of Digital Subscriber Line
(DSL) solutions, which enable telephone companies and Internet Service Providers to
optimize the bandwidth utilization of the ''last mile'' of copper wire in the Local Loop.
Orckit possesses both core silicon expertise and a wide range of DSL products,
including its FastInternet(TM) DSLAM System with ADSL, and its CopperTrunk(R)
HDSL and VDSL product lines. Orckit has key strategic alliances with several leading
semiconductor companies and telecom equipment providers. For more information about
Orckit and its DSL solutions, visit Orckit'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, she 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.
ORCKIT COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30 June 30
1998 1997 1998 1997
(Unaudited) (Unaudited) (Unaudited)(Unaudited)
Revenues $10,913 $7,683 17,461 $12,895
Cost of revenues 9,381 4,909 14,359 8,387
Gross profit 1,532 2,774 3,102 4,508
Research and development
expenses 2,973 1,454 5,413 2,864
Less -- grants 670 209 1,454 501
Research and development
expenses, net 2,303 1,245 3,959 2,363
Selling, general
and administrative
expenses 2,895 2,020 4,970 3,574
Operations loss (3,666) (491) (5,827) (1,429)
Financial income, net 309 255 611 641
Net loss $(3,357) $(236) $(5,216) $(788)
Net loss per
share -- basic
and diluted $(0.22) $(0.02) $(0.35) $(0.06)
Weighted average number
of shares outstanding 15,042 14,271 14,853 14,267
ORCKIT COMMUNICATIONS LTD. CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS
June 30 December 31
1998 1997
(Unaudited) (Audited)
Current assets:
Cash and cash equivalents $17,600 $4,130
Short-term investments 36,175 26,100
Trade receivables 9,890 6,008
Other receivables 4,883 2,567
Inventories 11,957 7,144
Total current assets 80,505 45,949
Property and equipment, net 2,746 1,839
Total assets $83,251 $47,788
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank credit -- $110
Trade payable 10,320 4,240
Accrued expenses and other 4,992 3,597
Total current liabilities 15,312 7,947
Accrued severance pay, net 316 225
Total liabilities 15,628 8,172
Shareholders' equity:
Share capital 525 466
Additional paid-in capital 78,119 44,955
Accumulated deficit (11,021) (5,805)
Total shareholder's equity 67,623 39,616
Total liabilities and
shareholder's equity $83,251 $47,788
SOURCE: Orckit Communications Ltd. |
