More on Sycamore:
Caviat empore (Latin's a little rusty - so would appreciate help from any true scholar here)
Guess its best to say in English
LET THE BUYER BEWARE:
Talk : IPOs : Sycamore Networks Inc-(SCMR)
To: techstocker (34 )
From: James Fulop Monday, Sep 6 1999 8:29PM ET
Reply # of 35
Not sure if this has posted... don't think so...
Sycamore Networks sounds like a taller, leafier version of Juniper Networks, one of this summer's most successful debuts. Like Juniper, Sycamore appears to be positioned to go public independently, rather than get acquired by a networking giant. Sycamore develops and markets software-based optical-networking products to allow telecommunications companies to provide faster, cheaper data transport. Sycamore's line of "intelligent optical networking products" transmits and manages data directly via wavelengths of light for transmission over fiber-optic cable. (Cerent is in the hardware market in this same, new optical domain.) In contrast, older-generation fiber-optic transmissions required the light to be converted to electrical signals, which created bottlenecks and delays.
"The signs look good for Sycamore's IPO, scheduled for October. Morgan Stanley Dean Witter is the lead underwriter. Sycamore's key executives came from Cascade, a successful networking company that merged with Ascend in 1997 and was then acquired by Lucent in June. But the company is still at an early stage in its development, and that's a risk. In nine months ended May, Sycamore lost $10.1 million on no revenue. But the company recently began shipping its SN 6000 Intelligent Optical Transport product to one customer, Williams Communications (WMB), owner and operator of a domestic long-distance fiber-optic network. Sycamore expects to bring in $11.3 million in revenue from Williams alone in its fiscal fourth quarter."
While RHK's Steinberg isn't eager to speculate on the company's IPO reception, he mentions the eye-popping debuts of Juniper and Redback as comparisons. "Draw your own conclusions," he says
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