Brocade among non-Web IPOs this week
NEW YORK, May 24 (Reuters) - Brocade Communications, a provider of switches for computer network storage systems, is one of the non-Internet deals scheduled to go public this week.
The company is planning on pricing 3.25 million shares at $15 to $17 Monday night, after the IPO's range was increased from $8 to $10 in a sign of strong demand.
Over the past decade, the volume of data that is being captured, processed and stored in business environments has exploded, creating a data transmission bottleneck between storage systems and servers, according to the company.
Brocade provides SilkWorm switches to help increase the size of a company's data storage system network while improving tasks such as reliable backup and restore and disaster recovery.
Brocade sells its switching systems through companies that include Compaq Computer Corp. (NYSE:CPQ - news) and Dell Computer (Nasdaq:DELL - news), according to a Securities and Exchange Commission filing.
The company reported a loss of $1.8 million for the quarter ended Jan. 31, 1999, on revenues of $8 million versus a loss of $1.35 million on revenues of $7.8 million the prior year.
According to Brocade, the company has incurred significant losses since its inception less than four years ago and expects to incur losses in the future. As of Jan. 31, 1999, Brocade had an accumulated deficit of $30.7 million, according to an SEC filing.
SalesLogix (Nasdaq:SLGX - news), a provider of products that create technologies to connect networks of marketing and support organizations, and Inet Technologies (Nasdaq:INTI - news) are also among the non-Web offerings going public this week.
Inet Technologies enables telecommunications carriers to more effectively design, deploy and manage communication networks used to manage telephone calls. |
