TEL AVIV, Israel, Feb. 7 /PRNewswire-FirstCall/ -- Orckit Communications Ltd. (NASDAQ:ORCT) today reported results for the fourth quarter and year ended December 31, 2006.
Revenues in the fourth quarter of 2006 were $9.0 million compared to $33.4 million in the quarter ended December 31, 2005 and $15.0 million in the previous quarter ended September 30, 2006.
Net loss for the quarter ended December 31, 2006 was $1.9 million, or $(0.12) per share, compared to net income of $7.6 million, or $0.45 per diluted share, for the quarter ended December 31, 2005 and net income of $1.0 million, or $0.06 per diluted share, for the previous quarter ended September 30, 2006.
Revenues for the year ended December 31, 2006 were $63.6 million compared to $101.2 million for the year ended December 31, 2005. Net income for the year ended December 31, 2006 was $5.2 million, or $0.31 per diluted share, compared to net income of $22.2 million, or $1.30 per diluted share, for the year ended December 31, 2005.
Key highlights for the quarter: -- Product evaluations of CM-100 Packet Transport Systems continued with
several carriers, primarily in Asia. Commercial selections by these
carriers are expected to occur in 2007. -- Corrigent continued to invest resources in the design and development
of new innovative releases for its Packet Transport Solution addressing
sophisticated packet aware transport platforms.
Izhak Tamir, President of Orckit, commented, "In 2006, we further established our market position through ongoing product evaluations with prominent telecom carriers. We enhanced our CM product offering, making it a more robust metro transport solution for converged voice, data and video service network architecture. In 2007, we plan to continue to promote our product architecture with targeted telecom carriers, while focusing our development efforts on the release of highly innovative products for the emerging area of converged metro carrier networks. Our family of products is designed to target very high bandwidth-intensive applications such as High- Definition IPTV and 3.5G wireless video services, as well as other video applications." Mr. Tamir continued, "We are awaiting final plans from KDDI, our most significant customer, with respect to its network build up for its 2007 fiscal year, which begins in April 2007. We believe that we are well positioned to benefit from the continued growth in KDDI's subscriber base for advanced data and video services over both cellular and wireline networks." Mr. Tamir concluded: "We are encouraged by the interest in Corrigent's CM product offering. We see potential from carriers in Asia and Europe, as well as North America, that are looking for metro product solutions with the ability to converge TDM and data services at ultra high-bandwidth over a unified platform. While other telecom equipment suppliers have recently begun to address converged transport product architecture, we believe that our innovative, comprehensive product offering is well positioned in the high- capacity packetized transport solutions market. We are looking forward to several product selection processes by telecom carriers that are expected to conclude in 2007." Outlook and Guidance For the quarter ending March 31, 2007, we expect revenues to be approximately $4.0 million, net loss to be approximately $6.3 million and net loss per share to be approximately $(0.40).
Conference Call Orckit Communications will host a conference call on February 7, 2007, at 11 a.m. EST. The call can be accessed by dialing 1-800-322-9079 in the United States and 1-973-582-2717 internationally. A replay of the call will be available at http://www.orckit.com/. A replay of the call will be also available through February 14, 2007 at 11:59 p.m. at 1-877-519-4471 in the United States and 1-973-341-3080 internationally. To access this replay, enter the following code: 8285412.
About Orckit Communications Orckit Communications Ltd. is a leading provider of advanced telecom equipment targeting high capacity broadband services. Our products include Corrigent's CM product line of metro optical transport solutions, based on RPR and MPLS technologies, delivering packet transmission services in the metro area. For more information on Orckit see http://www.orckit.com/ Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, risks in product development plans and schedules, rapid technological change, changes and delays in product approval and introduction, customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, exchange rate fluctuations, fluctuation in order size, proprietary rights of the Company and its competitors, risk of operations in Israel, government regulation, dependence on third parties to manufacture products, general economic conditions and other risk factors detailed in the Company's United States Securities and Exchange Commission filings. Orckit assumes no obligation to update the information in this release.
ORCKIT COMMUNICATIONS LTD. CONSOLIDATED STATEMENTS OF OPERATIONS
(US$ in thousands, except per share data) Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
Revenues $9,022 $33,403 $63,648 $101,247 Cost of revenues 3,901 17,150 30,219 51,872
______ ______ ______ ______
Gross profit 5,121 16,253 33,429 49,375 Research and development
expenses, net 3,692 4,257 15,554 16,147 Selling, marketing,
general and
administrative
expenses 4,216 4,866 16,017 16,086
______ ______ ______ ______
Total operating expenses 7,908 9,123 31,571 32,233
______ ______ ______ ______
Operating income (loss) (2,787) 7,130 1,858 17,142 Financial income, net 892 495 3,346 2,636 Other income 0 0 0 2,448
______ ______ ______ ______
Net income (loss) $(1,895) $ 7,625 $ 5,204 $22,226
====== ====== ====== ======
Net income (loss) per
share - basic $ (0.12) $ 0.53 $ 0.34 $ 1.59
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Net income (loss) per
share - diluted $ (0.12) $ 0.45 $ 0.31 $ 1.30
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Weighted average number
of shares outstanding
- basic 15,644 14,400 15,419 13,984
====== ====== ====== ======
Weighted average number
of shares outstanding
- diluted 15,644 16,334 16,606 16,345
====== ====== ====== ====== ORCKIT COMMUNICATIONS LTD. CONSOLIDATED BALANCE SHEETS
(US$ in thousands)
December 31 December 31
2006 2005 ASSETS Current assets:
Cash and short term marketable securities $46,011 $45,379
Trade receivables 1,581 702
Other receivables 2,077 1,520
Inventories 3,464 3,330
______ ______
Total current assets 53,133 50,931 Long term marketable securities 40,561 72,381
Severance pay fund 3,173 2,894
Property and equipment, net 2,490 3,740
______ ______
Total assets $99,357 $129,946
====== ====== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Trade payables $ 4,907 $ 9,282
Accrued expenses and other payables 10,134 19,173
Deferred income 3,196 28,736
______ ______
Total current liabilities 18,237 57,191 Long term liabilities: Accrued severance pay 4,257 3,689
______ ______
Total liabilities 22,494 60,880 Shareholders' equity 76,863 69,066
______ ______
Total liabilities and shareholders' equity $99,357 $129,946
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DATASOURCE: Orckit Communications Ltd.
CONTACT: Investor Relations: Jeffrey Corbin, +1-212-896-1214, , or Lee Roth, +1-212-896-1209, , both of KCSA Worldwide for Orckit Communications Ltd.
Web site: http://www.orckit.com/
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