Fidelity sells Orckit stake no wonder
The company's largest institutional investor has offloaded nearly all of its 6.9% holding.
Gitit Pincas 12 Jul 07 10:02
Telecommunications equipment manufacturer Orckit Communications Ltd.'s (Nasdaq: ORCT; TASE: ORCT) largest institutional investor, Fidelity International ,has offloaded almost the entire position that it held in the company through its investment arm FMR. Fidelity notified the US Securities and Exchange Commission (SEC) yesterday that it now holds less than 1% in Orckit, a holding which is now worth $1.3 million.
In February, FMR held 6.9% of Orckit, when the company's stock price stood at more than $11. The stock is currently trading at $8.80, as the market awaits news of the major contract that Orckit is expected to sign shortly.
Orckit's activity at present is its subsidiary Corrigent Systems, which has developed the CM -100 a solution for triple play, voice, video, and data communications transfer over Ethernet networks. Orckit currently has a market cap of $140 million, and it is due to publish its quarterly financials on August 15. However, an indication of its current situation could be forthcoming when the company makes its presentation today at the C.E. Unterberg, Towbin Emerging Growth Opportunities Conference now taking place in New York. Investors will be hoping to hear from the company what has happened to the contract it said it expected to close by the end of June.
Orckit expects to report a net loss of $8.5 million, or $0.54 per share on $1.7 million revenue in the second quarter. It was disclosed on Tuesday that CFO Aviv Boim is likely to leave following the publication of the company's third quarter financials, and that Ehud Rokach had stepped down as CEO of Corrigent for personal reasons. Orckit stressed that the two departures were not related.
Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2007
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