Integrated Telecom Express: Keeping ADSL Fast
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From May 1995 to December 1997, Integrated Telecom Express (ITE) was basically a supplier of integrated circuits, as well as related software solutions. But the company sold this line of business and instead rushed on the bandwagon of the red hot broadband equipment industry.
It was definitely a good move. After all, the company is now poised to go public this week. The lead underwriter is Lehman Brothers and the price range is $17-$19 (the company intends to issue 5.6 million shares). The proposed ticker symbol is ITXI.
The company now builds advanced components and modems for the ADSL (asymmetrical digital subscriber line) marketplace. The first products were shipped in the third quarter of 1999. So far, ITE offers two families of products. Apollo is a mix of net interface cards, external modems, gateways, routers and central office ADSL equipment. Then there is SAM, which is a scalable ADSL modem. There are currently 26 pending worldwide patents on the ITE technology.
Despite being a recent entrant to the marketplace, the company has been ramping up its sales tremendously. In the first six months of 2000, revenues were an impressive $14.4 million. Customers include: CAN Technologies, Alcatel Bell N.V., Garnet Systems, Interlink System, Nokia and Xpeed.
But the company's rapid acceptance of its product line, as well as the surge
in demand for ADSL products, should mean a strong IPO this week. Also,
similar IPOs have done well, such as Virata
. The company had
its IPO in November 1999 at $7 per share (adjusted for a split). The stock
now trades at $77-1/2.