TEL AVIV, Israel, Nov. 4, 2009 (GLOBE NEWSWIRE) -- Orckit Communications Ltd. (Nasdaq:ORCT) today reported results for the third quarter and nine months ended September 30, 2009.

Revenues in the third quarter of 2009 were $1.5 million compared to $4.1 million in the previous quarter ended June 30, 2009 and $5.4 million in the comparable quarter last year. Net loss for the quarter ended September 30, 2009 was $6.8 million, or $(0.41) per share, compared to $5.3 million, or $(0.32) per share, for the previous quarter ended June 30, 2009 and $9.7 million, or $(0.59) per share, for the third quarter of 2008. Adjustments related to the valuation of the conversion terms of the Company's convertible notes issued in March 2007 resulted in financial expense of $453,000 in the quarter ended September 30, 2009, $8,000 in the quarter ended June 30, 2009 and $1.7 million in the quarter ended September 30, 2008.

Revenues for the nine months ended September 30, 2009 were $9.7 million compared to $10.5 million for the nine months ended September 30, 2008. Net loss for the nine months ended September 30, 2009 was $16.2 million, or $(0.98) per share, compared to $25.2 million, or $(1.54) per share, for the nine months ended September 30, 2008. Adjustments related to the valuation of the conversion terms of the Company's convertible notes resulted in financial expense of $1.3 million in the nine months ended September 30, 2009 and $254,000 in the nine months ended September 30, 2008.

Results for the nine months ended September 30, 2009 include financial income of $3.0 million resulting from the repurchase in the first quarter of 2009 of a portion of the Company's convertible notes.

Key Highlights for the Quarter:

 -- Selected by leading telecommunications service provider in
    India to deploy our CM-4000 Carrier Ethernet + Transport
    solution;
 -- Signed agreement with leading Scandinavian service provider to
    upgrade a metro network for residential, business and mobile
    delivery;
 -- Established a Latin American presence with opening of new
    Brazilian office; and
 -- Demonstrated our solutions at major tradeshows including IBC,
    Amsterdam and Carrier Ethernet World Congress in Berlin

Izhak Tamir, Chairman of the Board and President of Orckit, commented, "Third quarter results were in line with our previously stated expectations and reflect the continued challenges of the global economy. Despite a weak business environment, we have made tangible progress during the quarter and throughout the year by steadily adding new Carrier Ethernet + Transport solution customers."

Mr. Tamir continued, "In the third quarter, our CM-4000 solution was selected, after a long commercial bidding process, as part of a next generation triple play network by a leading telecommunications provider in India. Our products were also selected by a Scandinavian service provider to upgrade a metro network delivering residential, business and voice services. We expect shipments to these two customers to begin in the fourth quarter of 2009 and revenue contributions in 2010.

"We now have about a dozen telecom carrier customers in multiple geographies that have selected or already deployed in the field our Carrier Ethernet + Transport solutions. The feedback from our sales force in the field has been very encouraging. We have continued to penetrate new Tier 2 and Tier 3 customers. This strategy has helped to diversify our customer base and presents an opportunity to expand these customer relationships through larger scale network expansions over time."

Mr. Tamir concluded, "We have put in place a platform for future growth by establishing a strong sales and marketing capability and by proving our value proposition to customers in different regions around the world. While visibility remains difficult, we believe that market and technology trends are slowly becoming more positive.