Orckit unit nears major deal
Corrigent Systems’ potential new customer is Global Crossing.
Ilanit Hayut and Gitit Pincas 16 Oct 07 12:34
Sources inform ''Globes'' that Orckit Communications Ltd. (Nasdaq: ORCT; TASE: ORCT) subsidiary Corrigent Systems Inc. is closer than ever to signing a new contract that is potentially worth tens of millions of dollars, or even more. The new potential customer is reportedly US tier-1 telecommunications provider Global Crossing Inc. (Nasdaq:GLBC). The companies have reportedly exchanged final drafts ahead of signing a contract.
The sources added that Corrigent COO Zvi Menahemi was recently in the US to finalize the contract. He has been in charge of the development of Corrigent’s technology since the company was founded, after previously serving as VP R&D at Orckit.
Orckit declined to comment on the report.
Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 390 cities in more than 30 countries, and delivers services to more than 600 cities in more than 60 countries. The company has a market cap of $790 million.
In a separate development, Orckit will receive $14.2 million plus coverage of attorney fees for settling its dispute with Globespanvirata Inc. during 2001-2003 prior to it being acquired by Conexant. The International Center for Dispute Resolution (the international division of the American Arbitration Association) ruled in Orckit’s favor in the arbitration hearing.
Orckit closed at $8.66 on Nasdaq yesterday, giving a market cap of $136.6 million. It rose 13% in morning trading on the TASE today.
Published by Globes [online], Israel business news - www.globes.co.il - on October 16, 2007
