Orckit Communications Reports 2011 First Quarter Results
23 Mai 2011 - 12:15PM
Orckit Communications Ltd. (Nasdaq:ORCT) today reported results for
the first quarter ended March 31, 2011.
Revenues in the first quarter of 2011 were $4.6 million compared
to $1.6 million in the comparable quarter last year. Net loss for
the quarter ended March 31, 2011 was $6.0 million, or $(0.27) per
share, compared to $6.1 million, or $(0.37) per share, for the
first quarter of 2010. Results for the first quarter of 2010
included other income of $1.6 million as a result of the sale of an
equity investment in the first quarter of 2010.
Adjustments related to the valuation of the conversion terms of
the Company's convertible notes issued in March 2007 resulted in
financial expense of $352,000 in the quarter ended March 31, 2011
and $317,000 in the quarter ended March 31, 2010.
Key highlights for the quarter:
- Revised revenue guidance for calendar 2011
upward by more than 10% from $25 to $28 million;
- Added four new Tier 2 and Tier 3 customers
from different high-growth regions worldwide increasing Orkcit's
active customer base to more than 20;
- Growing interest from Tier 1 carriers worldwide in
Orckit's Packet Transport Network (PTN) solution as a
result of increased usage of smart phones and tablets which drives
LTE (4G) and 3G deployment, as well as the build up of fixed
networks that cater to the delivery of mixed data and voice within
the same infrastructure;
- Extensive growth in evaluations, trials and
demonstrations of Orckit's PTN solution by major Tier 1 carriers
from a variety of regions; and
- Started commercial
negotiations and engaged in multiple discussions with Tier
1 prospects about deploying Orckit's PTN solution in fixed
networks, as well as in next generation mobile networks.
Izhak Tamir, Chairman and President of Orckit, said, "Orckit
achieved improved results with revenues significantly higher than
in the first quarter of 2010. Our increase in revenues was driven
by a growing installed base of service providers from around the
world. Given our success so far this year, we have greater
visibility and, as a result, we are increasing our revenue forecast
for calendar 2011 to $28 million which represents 90% revenue
growth compared to FY2010. Our revised guidance does not take into
account certain opportunities for increased revenues in excess of
our guidance, including the addition of new Tier 1 customers as a
result of our discussions with prospects and the possible increase
in orders from BSNL beyond our initial participation of $16 million
in their tender for fiber to the home as per BSNL procurement
policy."
Mr Tamir concluded, "Our track record this year speaks to our
ability to grow our customer base. In just the first quarter
this year, we added four new Tier 2 and Tier 3 carriers for our
CM-4000 PTN solutions. In addition, since the beginning of the
year, there has been significant growth in the number of LTE, FTTx
and SDH replacement projects around the world, which has led to
greater demand for PTN solutions. This has resulted in our
participation in additional trials and demonstrations, as well as
in initial deployments. Given our traction, we believe that
our success in securing new customers during the first quarter will
continue during the remainder of the year with the addition of
other new customers derived from these
opportunities."
Conference Call
Orckit Communications will host a conference call on May 23,
2011, at 9:00 a.m. EDT. The call can be accessed by dialing (877)
316-9044 in the United States and (706) 634-2329 internationally.
Please utilize the code 57308259. A replay of the call will be
available at http://www.orckit.com. A replay of the call will be
also available through June 23, 2011 at 11:59 p.m. at (800)
642-1687 in the United States and (706) 645-9291 internationally.
To access this replay, enter the following code: 57308259.
About Orckit Communications Ltd.
Orckit facilitates telecommunication providers' delivery of high
capacity broadband residential, business and mobile services over
wireline or wireless networks with its Orckit-Corrigent family of
products. With 20 years of field experience with Tier-1 customers
located around the world and sound leadership, Orckit has a firm
foothold in the ever-developing world of telecommunication.
Orckit-Corrigent's product lines include Carrier Ethernet +
Transport (CE+T) switches - an MPLS based portfolio enabling
advanced packet as well as legacy services over packet networks
with a wide set of transport features, and Personalized Video
Distribution systems - an advanced video distribution portfolio,
optimized for IPTV, enabling multiple HD streams per home.
Orckit-Corrigent markets its products directly and indirectly
through strategic alliances as well as distribution and reseller
partners worldwide. Orckit was founded in 1990 and went public
1996. Orckit is dually listed on NasdaqGM (ORCT) and the Tel Aviv
Stock Exchange and is headquartered in Tel-Aviv, Israel.
Certain matters discussed in this news release are
forward-looking statements that involve a number of risks and
uncertainties including, but not limited to, the Company's history
of losses, dependence on a limited number of customers, 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, need for additional
financing, the ability to repay the convertible notes, risk of
operations in Israel, government regulation, dependence on third
parties to manufacture products, the effect of current global
economic conditions, as well as turmoil in the financial and credit
markets, and other risk factors detailed in the Company's United
States Securities and Exchange Commission filings. Actual results
may materially differ. Orckit assumes no obligation to update the
information in this release.
ORCKIT COMMUNICATIONS
LTD. |
CONSOLIDATED BALANCE
SHEETS |
(US$ in
thousands) |
|
|
March 31 |
December 31 |
|
2011 |
2010 |
ASSETS |
|
|
Current assets: |
|
|
Cash and short term marketable
securities |
$14,561 |
$19,195 |
Trade receivables |
8,823 |
6,624 |
Other receivables |
2,322 |
3,197 |
Inventories |
4,148 |
3,183 |
|
|
|
Total current assets |
29,854 |
32,199 |
|
|
|
Long term marketable
securities |
15,110 |
16,351 |
Severance pay fund |
3,667 |
3,611 |
Property and equipment,
net |
798 |
923 |
Deferred issuance costs,
net |
139 |
173 |
|
|
|
Total assets |
$49,568 |
$53,257 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
Current liabilities: |
|
|
Trade payables |
$4,325 |
$3,778 |
Accrued expenses and other payables |
6,270 |
6,910 |
Deferred income |
2,273 |
1,933 |
|
|
|
Convertible subordinated notes |
26,894 |
-- |
Adjustments due to convertible notes
conversion terms |
(1,001) |
-- |
Convertible subordinated notes, net |
25,893 |
-- |
|
|
|
Total current liabilities |
38,761 |
12,621 |
|
|
|
Long term liabilities : |
|
|
Convertible subordinated notes |
-- |
26,151 |
Adjustments due to convertible notes
conversion terms |
-- |
(1,213) |
Convertible subordinated notes, net |
-- |
24,938 |
|
|
|
Accrued severance pay and other |
4,481 |
4,446 |
|
|
|
|
4,481 |
4,446 |
|
|
|
Total liabilities |
43,242 |
42,005 |
Shareholders' equity |
6,326 |
11,252 |
|
|
|
Total liabilities and shareholders'
equity |
$49,568 |
$53,257 |
|
|
ORCKIT COMMUNICATIONS
LTD. |
CONSOLIDATED STATEMENTS
OF OPERATIONS |
(US$ in thousands,
except per share data) |
|
Three Months
Ended |
|
March 31 |
|
2011 |
2010 |
|
|
|
Revenues |
$4,555 |
$1,631 |
|
|
|
Cost of revenues |
2,720 |
1,223 |
|
|
|
Gross profit |
1,835 |
408 |
|
|
|
Research and development expenses,
net |
3,016 |
3,740 |
|
|
|
Selling, marketing, general and
administrative expenses |
4,120 |
4,048 |
|
|
|
Total operating
expenses |
7,136 |
7,788 |
|
|
|
Operating loss |
(5,301) |
(7,380) |
|
|
|
Financial expenses, net |
(367) |
(30) |
Adjustments due to convertible notes
conversion terms |
(352) |
(317) |
Total financial expenses,
net |
(719) |
(347) |
|
|
|
Other income |
-- |
1,624 |
|
|
|
Net loss |
$(6,020) |
$(6,103) |
|
|
|
Net loss per share - basic
and diluted |
$(0.27) |
$(0.37) |
|
|
|
Weighted average number of shares
outstanding – basic and
diluted |
22,514 |
16,582 |
CONTACT: KCSA Strategic Communications
Investors, Analysts and Portfolio Managers
Marybeth Csaby
(212) 896-1276
Fax: (212) 697-0910
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