Orckit Reports Q2

TEL AVIV -- Orckit Communications Ltd. (NASDAQ:ORCT) today reported results for the second quarter and six months ended June 30, 2007.

Revenues in the second quarter of 2007 were $1.9 million compared to $14.7 million in the quarter ended June 30, 2006 and $4.5 million in the previous quarter ended March 31, 2007.

Net loss for the quarter ended June 30, 2007 was $6.4 million, or $(0.40) per share, compared to net income of $294,000, or $0.02 per diluted share, for the quarter ended June 30, 2006 and a net loss of $5.6 million, or $(0.36) per share, for the previous quarter ended March 31, 2007. Results for the quarter ended June 30, 2007 included financial income of $1.6 million resulting from adjustments due to the conversion terms of our convertible notes that were issued in March 2007.

Revenues for the six months ended June 30, 2007 were $6.4 million compared to $39.7 million for the six months ended June 30, 2006. Net loss for the six months ended June 30, 2007 was $12.0 million, or $(0.76) per share, compared to net income of $6.1 million, or $0.36 per diluted share, for the six months ended June 30, 2006.

Izhak Tamir, President of Orckit, commented, "This quarter we maintained our R&D efforts to enhance the capabilities of the CM-4000, our high capacity Packet Transport Switch. We remain on track to begin customer evaluations of the CM-4000 in late 2007, with commercial availability expected in early 2008. As recognition of the need for ultra-wide bandwidth converged metro architecture grows within the telecom industry, we continue to see increasing interest from telecom carriers in the CM-4000. This interest is driven by the emergence of high capacity video transmissions services."

Orckit Communications Ltd. (Nasdaq: ORCT)