E.M.,
Here is a little more information from WorldFinanceNet:
worldfinancenet.com
<<<Linux communications servers for call centers
This firm is evolving from one that makes call center operations and management equipment into a Linux communications server maker. Formerly known as Cortelco, its entry into the Linux world occurred in 4/99 with the acquisition of BCS Technologies. The initial application of these servers has been in the call center environment.
The introduction of Linux and the BCS Technologies acquisition have boosted the firm?s revenues. It recently grew at a 69.2% rate with F99 revenues of about $54 million. Notably, the firm is profitable with a 44.7% gross profit margin and a 2.3% net margin. Unlike most Linux offerings, its products may be ?bundled? as a component within its call center equipment. Consequently, it may temporarily avoid earnings pressures caused by dwindling Linux equipment margins while adding a competitive advantage to the firm?s other product lines.
While there were no obvious direct comparables, a few firms and recent IPOs may provide some insight into prospective valuations. Aspect Communications and Artisoft are both trading in the upper quarter of their 52 week ranges. Among the recent IPOs, eGain Communications was offered on 9/23 at $13 and closed at $23 for a 91.7% first day. It recently traded at $40.50, adding 76.1% in the aftermarket. Kana Communications was offered on 9/22 at $15 and closed at $51.50 for a 243.3% first day. It recently traded at $259.13, adding 403% in the aftermarket. Reflecting a positive valuation perspective, pre-offering demand has been reported as strong.
We are somewhat skeptical of the outlook for this offering. Its market niche is narrow, and the absence of a top name underwriter raises further questions. This is an interesting firm with a focused strategy, but the ability to sustain early valuations is unclear. However, we believe the Linux ?halo? and prior call center valuations will provide a first day ?pop? (e.g., 40%-60%) but will be followed by aftermarket erosion.>>>
I received a few IPO shares..
We will see how it works out ........coug
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