Telaxis IPO seen as next winner in wireless sector
NEW YORK, Jan 31 (Reuters) - Analysts on Monday predicted a strong debut for the
estimated $60 million initial public offering of Telaxis Communications Corp.
(NasdaqNM:TLXS - news), a company located in the dynamic wireless communications
sector.
``It's a super-fast-growing company,' said John Fitzgibbon of RedHerring.com. ``It's one of
the hotter companies in a hot industry.'
The South Deerfield, Mass.-based company, formerly known as Millitech Corp., is offering 4
million shares at a projected range of $14 to $16 per share through lead underwriter Credit Suisse First Boston.
Telaxis supplies high-speed wireless access equipment to network service providers like Newbridge Networks Corp. (Toronto:NNC.TO -
news) (NYSE:NN - news) and Motorola Inc. (NYSE:MOT - news). The company said Newbridge accounted for 81 percent of its sales for
the nine months ended Sept. 30.
Telaxis' products enable Internet access, electronic commerce, remote access, telecommuting and extensions of corporate networks to
branch offices.
In 1999's IPO market, wireless companies like Aether Systems Inc. (NasdaqNM:AETH - news) and Wireless Facilities Inc.
(NasdaqNM:WFII - news) enjoyed impressive debuts, a trend that analysts see continuing this year.
``I think wireless is going to be a big trend for 2000,' said Corey Ostman, chief technology officer at www.alert-ipo.com. ``(Telaxis is) in
the right space at the right time.'
In a research note, Irv DeGraw, research director at WorldFinanceNet.com, said he expects first-day gains of over 100 percent for Telaxis,
but warned that because of ``the firm's weak fundamentals ... this a speculative, momentum play.'
For the nine months ended Sept. 30, Telaxis incurred losses from continuing operations of $5.9 million from sales of $5.5 million.
The company said there would be over 15 million shares outstanding following the offering. |
