Orckit Communications Reports Year 2001 First Quarter Results

Apr 19, 2001, 01:00 ET from Orckit Communications Ltd.

    TEL AVIV, Israel, April 19 /PRNewswire/ -- Orckit Communications Ltd.
 (Nasdaq:   ORCT) today reported results for the first quarter ended March 31,
 2001.
     Total revenues for the quarter ended March 31, 2001 increased by
 14 percent to $ 36.9 million, compared to $32.4 million in the first quarter
 of 2000.
     Pro-forma net loss for the first quarter of 2001 was $4.0 million, or
 $(0.18) per share, compared to a net loss of $8.1 million, or $(0.40) per
 share in the first quarter of 2000.  First quarter 2001 pro-forma net loss
 excludes a non-cash charge for amortization of goodwill and non-cash stock
 compensation expenses.  Including these charges, net loss for the first
 quarter of year 2001 was $8.8 million, or $(0.39) per share.
     Total cash and cash equivalents and short-term investments increased to
 $112.2 million as of March 31, 2001 compared to $101.2 million as of
 December 31, 2000.
     Izhak Tamir, President of Orckit, stated:  "During the quarter we
 experienced steady demand for our DSLAM products in the United States and
 Europe."
     Mr. Tamir continued, "The formation of our new subsidiary, Corrigent
 Systems, Inc. was approved by our shareholders during the quarter, for the
 development of next generation packet-based metro products."
     "We have successfully completed the organization of our research and
 development team focusing on two main initiatives:  an advanced packet-based
 DSLAM and, through Corrigent, an access transport metro platform offering high
 bandwidth data and voice services.  These platforms are planned to be
 available in 2002."
 
     About Orckit Communications
     Orckit Communications Ltd. is a leading provider of advanced digital
 subscriber line (DSL) solutions that enable high-speed broadband data
 transmission over existing copper infrastructure. Orckit's FastInternet(TM)
 ADSL access multiplexer (DSLAM) and CopperTrunk(R) HDSL platforms, offer
 telecom operators and service providers a cost-effective solution enabling a
 variety of revenue-generating services such as voice, data and Internet
 access.  Orckit's DSL access platforms are deployed in over 30 countries
 worldwide.
     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.
     FastInternet(TM) and CopperTrunk(R) are trademarks of Orckit.
     This release and prior releases are available on the KCSA Public Relations
 Worldwide website at http://www.kcsa.com.
 
 
                           ORCKIT COMMUNICATIONS LTD.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                   (US$ in thousands, except per share data)
 
                                                       Three Months Ended
                                                            March 31
                                                      2001             2000
                                                  (Unaudited)      (Unaudited)
 
     Revenues                                       $36,857          $32,414
 
     Cost of revenues                                30,405           31,343
 
     Gross profit                                     6,452            1,071
 
     Research and development expenses, net           6,124            4,678
 
     Selling, general and
      administrative expenses                         6,082            4,644
 
     Amortization of goodwill                         2,747
 
     Operating loss                                  (8,501)          (8,251)
 
     Financial income (expenses), net                  (345)             199
 
 
     Net loss                                       $(8,846)         $(8,052)
 
     Net loss per share
      - basic and diluted                            $(0.39)          $(0.40)
 
     Weighted average number of shares
      outstanding                                    22,520           19,992
 
     Additional financial information:
 
     Net loss                                       $(8,846)         $(8,052)
 
     Goodwill amortization                            2,747               --
 
     Non cash stock compensation -
      research and development                        1,437               --
     Non cash stock compensation -
      selling, general and administrative               695               --
     Total non cash stock compensation                2,132               --
 
     Total                                            4,879               --
 
     Pro forma net loss (reflecting the
      additional financial information)             $(3,967)         $(8,052)
 
     Pro forma net loss per share - basic
      and diluted                                    $(0.18)          $(0.40)
 
 
                           ORCKIT COMMUNICATIONS LTD.
                          CONSOLIDATED BALANCE SHEETS
                               (US$ in thousands)
 
                                                   March 31         December 31
                                                      2001               2000
                                                  (Unaudited)         (Audited)
 
                               ASSETS
 
     Current assets:
         Cash and cash equivalents                  $78,335            $27,557
         Short-term investments                      33,874             73,634
         Trade receivables                            6,103             25,318
         Other receivables                            5,641              8,700
         Inventories                                 45,193             49,380
 
               Total  current assets                169,146            184,589
 
     Long term loan                                  20,000             20,000
     Property and equipment, net                      9,191              9,455
     Goodwill, net                                   23,354             26,101
     Deferred charges, net                            3,463              3,678
 
               Total  assets                       $225,154           $243,823
 
 
              LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
 
         Trade payables                             $18,337            $36,470
         Accrued expenses and other                  21,227             15,033
 
               Total current liabilities             39,564             51,503
 
     Long term liabilities :
 
         Accrued severance pay, net                   1,042              1,058
         Convertible subordinated notes             120,000            120,000
 
               Total long term
                liabilities                         121,042            121,058
 
               Total liabilities                    160,606            172,561
 
     Shareholders' equity                            64,548             71,262
 
               Total  liabilities and
                shareholders' equity               $225,154           $243,823
 
 

SOURCE Orckit Communications Ltd.
    TEL AVIV, Israel, April 19 /PRNewswire/ -- Orckit Communications Ltd.
 (Nasdaq:   ORCT) today reported results for the first quarter ended March 31,
 2001.
     Total revenues for the quarter ended March 31, 2001 increased by
 14 percent to $ 36.9 million, compared to $32.4 million in the first quarter
 of 2000.
     Pro-forma net loss for the first quarter of 2001 was $4.0 million, or
 $(0.18) per share, compared to a net loss of $8.1 million, or $(0.40) per
 share in the first quarter of 2000.  First quarter 2001 pro-forma net loss
 excludes a non-cash charge for amortization of goodwill and non-cash stock
 compensation expenses.  Including these charges, net loss for the first
 quarter of year 2001 was $8.8 million, or $(0.39) per share.
     Total cash and cash equivalents and short-term investments increased to
 $112.2 million as of March 31, 2001 compared to $101.2 million as of
 December 31, 2000.
     Izhak Tamir, President of Orckit, stated:  "During the quarter we
 experienced steady demand for our DSLAM products in the United States and
 Europe."
     Mr. Tamir continued, "The formation of our new subsidiary, Corrigent
 Systems, Inc. was approved by our shareholders during the quarter, for the
 development of next generation packet-based metro products."
     "We have successfully completed the organization of our research and
 development team focusing on two main initiatives:  an advanced packet-based
 DSLAM and, through Corrigent, an access transport metro platform offering high
 bandwidth data and voice services.  These platforms are planned to be
 available in 2002."
 
     About Orckit Communications
     Orckit Communications Ltd. is a leading provider of advanced digital
 subscriber line (DSL) solutions that enable high-speed broadband data
 transmission over existing copper infrastructure. Orckit's FastInternet(TM)
 ADSL access multiplexer (DSLAM) and CopperTrunk(R) HDSL platforms, offer
 telecom operators and service providers a cost-effective solution enabling a
 variety of revenue-generating services such as voice, data and Internet
 access.  Orckit's DSL access platforms are deployed in over 30 countries
 worldwide.
     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.
     FastInternet(TM) and CopperTrunk(R) are trademarks of Orckit.
     This release and prior releases are available on the KCSA Public Relations
 Worldwide website at http://www.kcsa.com.
 
 
                           ORCKIT COMMUNICATIONS LTD.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                   (US$ in thousands, except per share data)
 
                                                       Three Months Ended
                                                            March 31
                                                      2001             2000
                                                  (Unaudited)      (Unaudited)
 
     Revenues                                       $36,857          $32,414
 
     Cost of revenues                                30,405           31,343
 
     Gross profit                                     6,452            1,071
 
     Research and development expenses, net           6,124            4,678
 
     Selling, general and
      administrative expenses                         6,082            4,644
 
     Amortization of goodwill                         2,747
 
     Operating loss                                  (8,501)          (8,251)
 
     Financial income (expenses), net                  (345)             199
 
 
     Net loss                                       $(8,846)         $(8,052)
 
     Net loss per share
      - basic and diluted                            $(0.39)          $(0.40)
 
     Weighted average number of shares
      outstanding                                    22,520           19,992
 
     Additional financial information:
 
     Net loss                                       $(8,846)         $(8,052)
 
     Goodwill amortization                            2,747               --
 
     Non cash stock compensation -
      research and development                        1,437               --
     Non cash stock compensation -
      selling, general and administrative               695               --
     Total non cash stock compensation                2,132               --
 
     Total                                            4,879               --
 
     Pro forma net loss (reflecting the
      additional financial information)             $(3,967)         $(8,052)
 
     Pro forma net loss per share - basic
      and diluted                                    $(0.18)          $(0.40)
 
 
                           ORCKIT COMMUNICATIONS LTD.
                          CONSOLIDATED BALANCE SHEETS
                               (US$ in thousands)
 
                                                   March 31         December 31
                                                      2001               2000
                                                  (Unaudited)         (Audited)
 
                               ASSETS
 
     Current assets:
         Cash and cash equivalents                  $78,335            $27,557
         Short-term investments                      33,874             73,634
         Trade receivables                            6,103             25,318
         Other receivables                            5,641              8,700
         Inventories                                 45,193             49,380
 
               Total  current assets                169,146            184,589
 
     Long term loan                                  20,000             20,000
     Property and equipment, net                      9,191              9,455
     Goodwill, net                                   23,354             26,101
     Deferred charges, net                            3,463              3,678
 
               Total  assets                       $225,154           $243,823
 
 
              LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
 
         Trade payables                             $18,337            $36,470
         Accrued expenses and other                  21,227             15,033
 
               Total current liabilities             39,564             51,503
 
     Long term liabilities :
 
         Accrued severance pay, net                   1,042              1,058
         Convertible subordinated notes             120,000            120,000
 
               Total long term
                liabilities                         121,042            121,058
 
               Total liabilities                    160,606            172,561
 
     Shareholders' equity                            64,548             71,262
 
               Total  liabilities and
                shareholders' equity               $225,154           $243,823
 
 SOURCE  Orckit Communications Ltd.