Talarian has a long
history, which extends back to the glory days of defense spending in the
1980s. But once the Cold War ended, Talarian needed to shift its business
model.
With strong corporate contracts and software products, the company has made
an effective transition. Currently, Talarian has technology solutions that
allow businesses to exchange information in real-time – over private
networks and the Internet. Customers include CS First Boston, WorldCom and
Micron Technology (there are over 300 customers).
In the past quarter, the company had sales of $4 million, which is up from
$1.2 million from the same period a year ago. Losses were $5.7 million.
The Talarian IPO was priced at $16 (the price range was $12-$14), raising
about $64 million. The lead underwriter was Lehman Brothers. On its first
day of trading, the stock hit a high of $27 and then ended the day at
$22.75. This was a pretty good performance, considering that Nasdaq was
down 90 points. There is likely to become more near-term upside with the
stock, so long as Nasdaq does not crater.
Corio is a leading Application
Service Provider (ASP). This company also went public on Friday and had a nice debut.
Basically, Corio rents software to major corporations. Let’s face it,
running corporate IT is expensive and drains talented resources. Why not
outsource it? Well, this is what Corio has been doing successfully. On
its servers, the company hosts the applications of such top developers as
Siebel, Broadvision, and PeopleSoft. Customers include Excite@Home and
VerticalNet.
However, the company is a big money loser. In the past quarter, losses were
$28.5 million. As for revenues, these are beginning to bare fruit. In the
past quarter, revenues were $5.2 million, which compares to $746,000 in the
same period last year.
The company has strong backing. Investors include Kleiner Perkins, Cap Gemini
Ernst & Young and Dell.
The lead underwriter was Goldman Sachs, with the IPO priced at $14 (the price
range was $11-$13). In all, the company raised $140 million. The stock hit
a high of $21.75 and ended the day at $19.69. As with Talarian, there is
probably more upside with the stock.
Finally, Airspan Networks
gained altitude on its IPO.
The lead underwriter was CS First Boston, which priced the deal at $15 (the
price range was $12-$14). The stock hit a high of $49 and then eased back
to $31.95 on its first day of trading. The stock currently trades at $30.
The company develops so-called fixed wireless communications access systems.
This uses wireless technology to bring high-speed Net access to dispersed
areas that lack adequate telecom infrastructures.
The fixed wireless market is nascent. The company posted revenues of $5.7
million in the first quarter of 2000, losses were $7.1 million. In the same
period last year, revenues were $1.3 million.
What’s more, Airspan has 73% of its revenues from two countries: the
Philippines and Sri Lanka. Of course, these countries have been subject to
political instability. If there are any problems, this could be devastating
for the stock. This stock is not for the faint-of-heart.
