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Kaufman Brothers analyst Barry Sine thinks investors' concerns were misplaced. Darby's
departure, while a surprise, makes sense when one considers that he had participated in
the IPOs of two other companies before Redback, and made out well financially in
Redback's IPO, Sine said. Darby said during a conference call Wednesday that he
wanted to spend more time with his family, according to Sine.
The choice of Gentner, with 13 years experience as a chief financial officer, shows that
Redback made a carefully thought-out replacement for Darby, Sine said.
Sine wasn't concerned about the early lockup expiration because the underwriters have
offered such early releases twice before. He said the gradual release of shares into the
market has been absorbed nicely, and is preferable to a flood of shares in November,
which would cause an over-supply and could drive the stock price down.
Redback's third-quarter results "significantly" beat Sine's estimates, he said. He was
particularly impressed by the company's expansion in Europe.
U.S. Bancorp Piper Jaffray analyst Conrad W. Leifur downgraded his rating for Redback
to "neutral" from "buy" solely on valuation, according to a summary of rating changes
issued by the firm. Leifur said Redback's third-quarter results were impressive; he made
no mention of the other news. Leifur couldn't be reached for comment.
Leifur raised his estimate of Redback's fourth-quarter results to earnings of 1 cent a
share on revenue of $23.5 million from a loss of 1 cent on revenue of $19 million.
-By Peter Loftus, Dow Jones Newswires; 201-938-5267; peter.loftus@dowjones.com |
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