Orckit Communications Ltd fka ORCT

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Orckit's dream year: 800% revenue growth in 2005 to $101 million

21.2.06 | 19:43 By Shirley Yom-Tov

The financial statements that Orckit Communications (Nasdaq: ORCT) delivered for the last quarter of 2005 has little news for investors, but the communications equipment provider leaped past Wall Street expectations and its own guidance dating from October 2005. It also presented a remarkable 800% increase in revenues to $101 million for the year.

For the fourth quarter of 2005 Orckit reported $33.4 million revenues and net profit of $7.6 million or 45 cents per share.

The average forecast among three Wall Street analysts had been for $32.1 million revenues and 41-cent earnings per share.

For the year 2005 Orckit reached $101.2 million revenues and profit of $22 million or $1.30 per share. In the year before it made revenues of $11.3 million and lost $20.1 million. One could call it a dream year for Orckit and its shareholders.

Orckit stock from 2004: Phenomenal returns

If analysts had hoped that Orckit would raise its guidance, or reveal new customers, well, it didn't. The company, led by Itzik Tamir, repeated guidance dating from October 2005 of $125 million revenues in 2006, and net profit of $25.8 million or $1.50 per share.

Orckit also expects a significant slide in the first quarter against the fourth, but then analysts expected that. It projects revenues of $24 million and $3.8 million net profit, or 22 cents per share. The average forecast on the Street is $23.7 million revenues and 20-cent earnings per share.

http://www.haaretz.com/hasen/spages/685586.html

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