Orckit Communications Reports 2009 Fourth Quarter and Year
End Results
GlobeNewswire
2010-02-10
TEL AVIV, Israel, Feb. 10, 2010 (GLOBE NEWSWIRE) -- Orckit
Communications Ltd. (Nasdaq:ORCT) today reported results for the fourth
quarter and year ended December 31, 2009.
Revenues in the fourth quarter of 2009 were $3.0 million compared to
$1.5 million in the previous quarter ended September 30, 2009 and $6.8
million in the comparable quarter last year. Net loss for the quarter
ended December 31, 2009 was $6.9 million, or $(0.41) per share,
compared to $6.8 million, or $(0.41) per share, for the previous
quarter ended September 30, 2009 and $7.1 million, or $(0.57) per
diluted share, for the fourth quarter of 2008. Adjustments related to
the valuation of the conversion terms of the Company's convertible
subordinated notes issued in March 2007 resulted in financial expense
of $594,000 in the quarter ended December 31, 2009 and $453,000 in the
quarter ended September 30, 2009 and financial income of $1.3 million
in the quarter ended December 31, 2008.
Revenues for the year ended December 31, 2009 were $12.7 million
compared to $17.3 million for the year ended December 31, 2008. Net
loss for the year ended December 31, 2009 was $23.1 million, or $(1.40)
per share, compared to $32.3 million, or $(1.97) per share, for the
year ended December 31, 2008. Adjustments related to the valuation of
the conversion terms of the Company's convertible subordinated notes
resulted in financial expense of $1.9 million in the year ended
December 31, 2009 and financial income of $1.1 million in the year
ended December 31, 2008.
Results for the year ended December 31, 2009 include financial income
of $3.0 million resulting from the repurchase in the first quarter of
2009 of a portion of the Company's convertible subordinated notes.
Key highlights for the quarter:
-- Shipments to four new customers in Asia, South America and Europe began
in this quarter;
-- Commenced new sales and marketing efforts in growing territories,
including establishment of a new office in Manila to address the
Philippines telecommunication sector; and
-- Q4 2009 revenue doubled compared to previous quarter.
Izhak Tamir, Chairman and President of Orckit, commented, "We entered
2010 with over a dozen customers. This follows a year where we
aggressively built out our infrastructure to support revenue growth and
the momentum to continue growing our client base in 2010."
Mr. Tamir continued, "We believe we have the global infrastructure in
place to better serve our telecom carriers and support our sales
objectives. Our technology is gaining traction among major Tier-1 and
Tier-2 carriers and we are becoming known for delivering quality and
cost effective solutions through our CM family of products that address
Metro data and video services."
Mr. Tamir concluded, "Market fundamentals have slowly been changing for
the better, which is expected to bring us more opportunities and
prospects for continued customer base growth. We are optimistic that we
will see significant revenue growth in 2010, although we may see
fluctuations from quarter to quarter."
Conference Call
Orckit Communications will host a conference call on February 10, 2010,
at 9:00 a.m. EST. The call can be accessed by dialing (877) 316-9044 in
the United States and (706) 634-2329 internationally. Please utilize
the code 49128610. A replay of the call will be available at
http://www.orckit.com. A replay of the call will be also available
through March 10, 2010 at 11:59 p.m. at 1-800- 642-1687 in the United
States and 1-706-645-9291 internationally. To access this replay, enter
the following code: 49128610.
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)
December December
31, 31,
2009 2008
-------- --------
ASSETS
Current assets:
Cash and short term
marketable securities $31,427 $48,231
Trade receivables 458 3,820
Other receivables 1,145 3,638
Inventories 2,702 1,771
-------- --------
Total current assets 35,732 57,460
Long term marketable
securities 15,916 19,738
Severance pay fund 3,294 3,017
Property and equipment, net 1,103 1,378
Deferred issuance costs, net 312 596
-------- --------
Total assets $56,357 $82,189
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade payables $4,454 $4,654
Accrued expenses and other
payables 6,976 8,296
Deferred income 1,371 2,787
-------- --------
Total current liabilities 12,801 15,737
Long term liabilities:
Convertible subordinated
notes 24,035 30,367
Adjustments due to
convertible notes conversion
terms (2,039) (4,636)
-------- --------
Convertible subordinated
notes, net 21,996 25,731
Accrued severance pay and
other 4,096 3,960
-------- --------
26,092 29,691
Total liabilities 38,893 45,428
Shareholders' equity 17,464 36,761
-------- --------
Total liabilities and
shareholders' equity $56,357 $82,189
======== ========
ORCKIT COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(US$ in thousands, except per share data)
Three Months Ended
Year Ended
December 31 December 31
2009 2008 2009 2008
-------- -------- --------- ---------
Revenues 3,030 6,781 12,727 17,256
Cost of revenues 2,109 4,268 8,244 9,606
-------- -------- --------- ---------
Gross profit 921 2,513 4,483 7,650
Research and development expenses,
net 3,450 5,254 13,608 22,859
Selling, marketing, general and
administrative expenses 3,620 5,028 15,677 19,164
-------- -------- --------- ---------
Total operating expenses 7,070 10,282 29,285 42,023
-------- -------- --------- ---------
Operating loss (6,149) (7,769) (24,802) (34,373)
Financial income (expenses), net (115) (622) 3,603 1,004
Adjustments due to convertible notes
conversion terms (594) 1,336 (1,863) 1,082
-------- -------- --------- ---------
Total financial income (expenses),
net (709) 714 1,740 2,086
-------- -------- --------- ---------
Net loss $(6,858) $(7,055) $(23,062) $(32,287)
======== ======== ========= =========
Net loss per share - basic $(0.41) $(0.43) $(1.40) $(1.97)
======== ======== ========= =========
Net loss per share - diluted $(0.41) ($0.57) $(1.40) $(1.97)
======== ======== ========= =========
Weighted average number of shares
outstanding - basic 16,562 16,403 16,483 16,386
======== ======== ========= =========
Weighted average number of shares
outstanding - diluted 16,562 18,442 16,483 16,386
======== ======== ========= =========
CONTACT: KCSA Strategic Communications
Marybeth Csaby
(212) 682-6300 ext. 236
Fax: (212) 697-0910
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