Orckit Communications Ltd fka ORCT

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No, Cisco is not buying Orckit, surmises Unterberg
16.11.06 | 12:09 By Omer Sharvit
Shares in Orckit Communications (Nasdaq: ORCT) have risen 30% since the company published its unhappy third-quarter results, and supplied disappointing forecasts for the fourth quarter. So what fueled the gains?

Rumors that Cisco is buying Orckit for $20 per share, that's what.

CE Unterberg Towbin thinks that highly unlikely, at least until Orckit proves itself by roping in a major client.

Also, Unterberg notes that Cisco is not in the habit of proliferation through acquisition of publicly traded companies.

Since October 23, 2006, shares in Orckit have risen 65%.

For the third quarter of 2006 Orckit said that profit fell almost 90% against the previous year, hurt by a slowdown in customer expansion efforts. The company reported net income of $985,000, compared with a profit of $7.6 million in the same period of 2005.

The 2005 quarter included capital gains of about $2.4 million from the sale of holdings in Siliquent Technologies to Broadcom, it explained.

The company said its business will likely be affected by a slowdown in expansion by its largest customer, Japanese mobile phone carrier KDDI. Orckit narrowed its outlook range and now projects full-year 2006 earnings of $4.1 million, or 25 cents per share, and revenue of $63 million.

Revenue for the quarter fell to $15 million from $25.4 million in the prior-year quarter.

http://www.haaretz.com/hasen/spages/788968.html