SOURCE: Orckit Communications Ltd.
Orckit Reports Record High Revenues for the First Quarter, 123 Percent Increase Over Previous Year
TEL AVIV, Israel, April 19 /PRNewswire/ -- Orckit Communications Ltd. (Nasdaq: ORCTF - news), today reported record high revenues for the quarter ended March 31, 1999, which increased 123 percent to $14.6 million, compared to $6.5 million for the quarter ended March 31, 1998. Net loss for the first quarter of 1999 was $6.5 million, or ($0.38) per share, compared to a loss of $1.9 million, or ($0.13) per share, in the first quarter of 1998.
The increase in revenues for the first quarter of 1999 was driven by sales of Orckit's ADSL DSLAM systems in the US and Europe, and sales of CopperTrunk® HDSL systems in Europe.
Gross profit for the quarter was $815 thousand, compared to a gross profit of $1.6 million for the first quarter of 1998. The decrease in the gross profit is primarily a result of forward pricing related to the Company's shipments of ADSL DSLAM systems for large-scale deployments in the US and Europe.
''During this quarter we have continued to build our ADSL market share both in the US and in Europe,'' said Mr. Izhak Tamir, Orckit President. ''In the US we have carried on with volume shipments of ADSL systems to GTE together with Fujitsu Network Communications. In Europe, we have begun the shipment of our ATM FastInternet(TM) ADSL system, together with Fujitsu Limited, to Deutsche Telekom for their country-wide ADSL deployment and continued with commercial ADSL shipments to other European carriers.
''Following the availability of samples of the jointly developed Orckit- Fujitsu Microelectronics KeyWave(TM) ADSL IC, we are focusing our R&D efforts on integrating the new chip into our next generation DSLAM system. Orckit's KeyWave-based FastInternet DSLAM is expected to support full rate ADSL and G.Lite modes of operation for both the Central Office (CO) and Customer Premise Equipment (CPE), and to allow advanced ATM, Frame Relay and IP concentration capabilities. We believe that our FastInternet DSLAM will provide a comprehensive solution to carriers' needs in the growing ADSL market.''
KeyWave(TM) is a trademark of Fujitsu Microelectronics Ltd.
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® 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, 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.
ORCKIT COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
March 31
1999 1998
(Unaudited) (Unaudited)
Revenues $14,602 $6,548
Cost of revenues 13,787 4,978
Gross profit 815 1,570
Research and development
expenses 3,957 2,440
Less - grants 215 784
Research and development
expenses, net 3,742 1,656
Selling, general and
administrative expenses 3,962 2,075
Operations loss (6,889) (2,161)
Financial income, net 405 302
Net loss $(6,484) $(1,859)
Net income (loss)
per share - basic and $(0.38) $(0.13)
Weighted average
number of shares
outstanding 16,905 14,658
ORCKIT COMMUNICATIONS LTD.
CONSOLIDATED BALANCE
SHEETS
(in thousands)
March 3 December 31
1999 1998
(unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $6,827 $9,329
Short-term investments 27,789 32,445
Trade receivables 10,528 7,508
Other receivables 3,550 3,158
Inventories 17,988 17,288
Total
current assets 66,682 69,728
Property and equipment, net 3,842 3,303
Total
assets $70,524 $73,031
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade payable $13,734 $10,378
Accrued expenses and other 4,878 5,170
Total current liabilities 18,612 15,548
Accrued severance pay, net 205 189
Total liabilities 18,817 15,737
Shareholders' equity:
Share capital 529 525
Additional paid-in capital 79,216 78,323
Accumulated deficit (28,038) (21,554)
Total shareholder's equity 51,707 57,294
Total liabilities and shareh $70,524 $73,031
SOURCE: Orckit Communications Ltd.
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