Advanced digital subscriber line solution provider
(Nasdaq:ORCT) has beat analysts' forecasts for two consecutive quarters. From the perspective of revenues, at least. Its net was another story.
Q1 revenues were $36.9 million, compared to $32.4 million for the same period last year. Piper Jaffray had expected revenues of $36.5 million.
In the fourth quarter, however, Orckit did better with revenues of $48.1 millon.
Orckit lost a net pro-forma $8.8 million in the first quarter, or 18 cents per share. 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 $39 cents per share. Analysts had been expecting a loss per share of 38 cents.
The only other time the company managed to beat forecasts was in the fourth quarter of 2000. Given the difficult market, and the economic slowdown, Orckit's success is notable.
was not impressed. It doubts that Orckit will be able to repeat its success in successive quarters, given the problems in the Access market.
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.
"During the quarter we experienced steady demand for our DSLAM products in the United States and Europe," said Orckit President Izhak Tamir. "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," Tamir said.
Orckit Communications Ltd. (NASDAQ: ORCT) provides advanced digital subscriber line (DSL) solutions that enable high-speed broadband data transmission over existing copper infrastructure. Orckit's FastInternet ADSL access multiplexer (DSLAM) and CopperTrunk HDSL platforms, offer telecom operators and service providers a 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.
Orckit's shares finished trading on Wednesday at $1.4 per share, which reflects a company valuation of $32.4 million. This means that Orckit is currently trading at more than $75 million below its cash value, and much below its peak price of $34 per share, as seen in March of 2000.