TEL AVIV, Israel, Oct. 31 /PRNewswire-FirstCall/ -- Orckit Communications Ltd. (NASDAQ:ORCT) today reported results for the third quarter and nine months ended September 30, 2006.
Revenues in the third quarter of 2006 were $15.0 million compared to $25.4 million in the quarter ended September 30, 2005 and $14.7 million in the previous quarter ended June 30, 2006.
Net income for the quarter ended September 30, 2006 was $985,000, or $0.06 per diluted share, compared to net income of $7.6 million, or $0.45 per diluted share, for the quarter ended September 30, 2005 and net income of $294,000, or $0.02 per diluted share, for the previous quarter ended June 30, 2006.
Revenues for the nine months ended September 30, 2006 were $54.6 million compared to $67.8 million for the nine months ended September 30, 2005. Net income for the nine months ended September 30, 2006 was $7.1 million, or $0.42 per diluted share, compared to net income of $14.6 million, or $0.84 per diluted share, for the nine months ended September 30, 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 extended its Packet Transport Solution with new platforms: the
CM-104 and the CM-21. These additions are designed to allow service
providers more flexibility in the deployment of the CM product line,
provide the access component in Corrigent's end-to-end packet transport
solution and address service applications which were not covered prior
to the release of these new platforms.
Izhak Tamir, President of Orckit, commented, "As video applications continue to draw increased interest for high wideband solutions in metro and access networks, Corrigent's product line is well positioned to provide telecom service providers with a full and efficient platform for converged networks of data, voice, video and cellular services. Increasing demand for these high bandwidth-demanding services is expected to propel commercial deployments for innovative platforms such as our CM product line." Mr. Tamir continued, "KDDI, our most significant customer, is progressing in its efforts to have a fully IP-based fixed-mobile converged network, while enjoying subscriber growth for its data services over both advanced cellular and wireline offerings. However, following the significant network expansion KDDI has undertaken using the CM-100 product, additional expansion in its 2006 fiscal year, which ends in April 2007, will be low. Nevertheless, we believe that we are well positioned to benefit from the continued growth in KDDI's subscriber base for data and video services." Mr. Tamir concluded: "Our recent product introductions address market opportunities and are a result of our intense R&D efforts. As market demand for bandwidth increases, we intend to continue our efforts to offer telecom carriers innovative, high-capacity packetized solutions targeting this new area for converged transport technology." Outlook and Guidance For the year ending December 31, 2006, we expect revenues to be approximately $63.0 million, net income to be $4.1 million and net income per diluted share to be $0.25.
Conference Call Orckit Communications will host a conference call on October 31, 2006, at 11 a.m. EST. The call can be accessed by dialing 1-866-406-5408 in the United States and 1-973-582-2822 internationally. A replay of the call will be available at http://www.orckit.com/. A replay of the call will be also available through November 7, 2006 at 11:59 p.m. at 1-877-519-4471 in the United States and 1-973-341-3080 internationally. To access this replay, enter the following code: 7592389.
About Orckit Communications Orckit Communications Ltd. is a leading provider of advanced telecom equipment targeting high capacity broadband services. Our products include Corrigent's CM product line of metro optical transport solutions, based on RPR and MPLS technologies, delivering packet transmission services in the metro area. For more information on Orckit see http://www.orckit.com/ Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, risks in product development plans and schedules, rapid technological change, changes and delays in product approval and introduction, customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, exchange rate fluctuations, fluctuation in order size, proprietary rights of the Company and its competitors, risk of operations in Israel, government regulation, dependence on third parties to manufacture products, general economic conditions and other risk factors detailed in the Company's United States Securities and Exchange Commission filings. Orckit assumes no obligation to update the information in this release.
ORCKIT COMMUNICATIONS LTD. CONSOLIDATED STATEMENTS OF OPERATIONS
(US$ in thousands, except per share data) Three Months Ended Nine Months Ended
September 30 September 30
2006 2005 2006 2005 Revenues $14,961 $25,443 $54,626 $67,844 Cost of revenues 6,933 13,060 26,318 34,722
______ ______ ______ ______
Gross profit 8,028 12,383 28,308 33,122 Research and development
expenses, net 3,640 3,983 11,862 11,890 Selling, marketing
general and
administrative
expenses 4,236 3,825 11,801 11,220
______ ______ ______ ______
Total operating
expenses 7,876 7,808 23,663 23,110
______ ______ ______ ______
Operating income 152 4,575 4,645 10,012 Financial income, net 833 583 2,454 2,141 Other income 0 2,448 0 2,448
______ ______ ______ ______
Net income $985 $7,606 $7,099 $14,601
====== ====== ====== ======
Net income per
share - basic $0.06 $0.54 $0.46 $1.05
====== ====== ====== ======
Net income per
share - diluted $0.06 $0.45 $0.42 $0.84
====== ====== ====== ======
Weighted average number
of shares outstanding
- basic 15,588 14,188 15,343 13,848
====== ====== ====== ======
Weighted average number
of shares outstanding
- diluted 16,282 17,014 16,775 16,514
====== ====== ====== ======
ORCKIT COMMUNICATIONS LTD. CONSOLIDATED BALANCE SHEETS
(US$ in thousands) September 30 December 31
2006 2005
ASSETS Current assets:
Cash and short term marketable securities $47,291 $45,379 Trade receivables 195 702 Other receivables 1,604 1,520 Inventories 4,803 3,330 ______ ______
Total current assets 53,893 50,931 Long term marketable securities 47,425 72,381 Severance pay fund 3,074 2,894 Property and equipment, net 2,712 3,740 ______ ______
Total assets $107,104 $129,946
======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Bank loan $1,368 $0 Trade payables 6,199 9,282 Accrued expenses and other payables 11,464 19,173 Deferred income 5,587 28,736 ______ ______
Total current liabilities 24,618 57,191
Long term liabilities : Accrued severance pay 4,209 3,689 ______ ______
Total liabilities 28,827 60,880
Shareholders' equity 78,277 69,066 ______ ______
Total liabilities and shareholders' equity $107,104 $129,946
======== ======== Contacts: Jeffrey Corbin/Lee Roth/(Investor Relations)
(212)896-1214/(212)896-1209
/ DATASOURCE: Orckit Communications Ltd.
CONTACT: Jeffrey Corbin, +1-212-896-1214, , or Lee Roth, +1-212-896-1209, , both Investor Relations of KCSA Worldwide Web site: http://www.orckit.com/
|