NTSL--article
<<Netsolve, ShopNow, and FTD.com all headed north in their debuts Tuesday, but the gains were minimal for two of the three.
Netsolve, which was up 130 percent at one point, closed up 6 to 19, or 46 percent. ShopNow showed decent early gains, but closed up just 11/16 to 12 11/16, or 6 percent. FTD.com gained 5/8 to 8, or 8 percent.
Netsolve (Nasdaq: NTSL) was the obvious IPO choice in early trading Wednesday. The company, which priced at $13 a share, is something of a white tiger among technology debuts, with a profit in its last quarter. Shopnow.com (Nasdaq: SPNW) also priced 7.25 million shares at $12 each for trading Wednesday.
Netsolve priced its $3.7 million shares at $13 each, the top of its $11-$13 range. Lead underwriter for the offering is BancBoston Robertson Stephens.
The Austin, Texas-based company provide services to manage networks and network security. NetSolve offers remote network management and security services that allow companies to outsource, or "out-task," activities of their wide area networks (WANs) or local area networks (LANs). Given the success of Foundry (Nasdaq: FDRY) on Tuesday, any company that combines the words profit, network and infrastructure could soar.
Netsolve turned a profit in the last quarter, returning net income of $1.9 million on revenue of $9 million for the quarter ending June 30.
The company's continuing profitability depends on its relationships with resellers such as AT&T, its largest customer, and network equipment manufacturers such as Cisco, according to filings with the Securities and Exchange Commission. Sales to AT&T accounted for 59 percent of Netsolve's revenue in the fiscal year ended March 31, 1999 and 69 percent of revenue in the three months ended June 30, 1999.>>
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