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RealTime IT News

IPOs on the Mend

As of Friday, IPO investors weren't leaving early for vacation. There were several mega IPOs. One was StorageNetworks . The company is a leader in storage area networks (SANS). SANS are becoming increasingly important as companies must deal with huge amounts of data. Customers include Merrill Lynch, Yahoo!, and Lycos.

Although, the company is in the early stages. In the past quarter, revenues were $4.6 million. But it is enough to support a market capitalization exceeding $8.5 billion.

StorageNetworks the IPO was priced at $27 and ended the day at $90-1/4 (the high was $102). About 13 million shares traded hands. In all, the company raised $243 million.

There was also nice action from Canada. The IPO was Exfo Electrical Optical Engineering . Priced at $26, the stock rose to $43-7/8 (the company raised $187 million). Volume was 12.1 million shares.

The company develops equipment to test and monitor fiber optic equipment. With the demand for fiber equipment soaring, so is the demand for Exfo's products.

True, the competition is stiff, such as from JDS Uniphase. Despite this, the company has generated profits since 1985.

Another profitable company had a great performance last week. It was Marvell Technology . The IPO was priced at $15 and shot-up to a high of $63-5/16. The stock closed at $56.

The company develops sophisticated integrated circuits for the data storage market. However, the technology has proved to be versatile and is now being integrated for broadband applications. In the past year, revenues were $81 million and profits were $13.1 million.

Finally, Stratos entered the stratosphere. The IPO price was $21 and the stock soared to $50 -- but it settled to $34-1/8.

Yep, the company is in the fiber optic industry. Basically, Stratos develops communications subsystems for local and metropolitan networks. Customers include such heavies as Cisco, Alcatel, and Lucent. Last year, Stratos had revenues of $46.5 million and profits of $3.5 million.