Orckit is an Israeli modem manufacturer worth 90 million that sells 3 million a year. Its major contract with Deutsche Telekom AG (DT) has now reached the deliveries stage, with the first platforms installed at the end-customer, KDG, Germany's largest cable television provider, and the rate of installation will increase from one quarter to the next.
Orckit has given a generous options allocation to its managers, but only if they meet the annual sales targets they were set. For example, the aggregate sales target for 2009-2011 is $250 million, with a threshold of $50 million for 2009. Shlomi Cohen, an analyst always wrong, writes that these targets are already covered by the contract in Germany, but nothing can be assumed as a given.
Bottom line: Orckit has been a deception. I am losing money with it.