Friday March 10, 1:04 pm Eastern Time
ONI Systems seeks to raise $115 mln in IPO
WASHINGTON, March 10 (Reuters) - ONI Systems Corp., maker of all-optical networking equipment
that is designed to reduce bandwidth and service bottlenecks, on Friday filed to raise $115 million in an
initial stock offering.
The company, based in San Jose, Calif., said its equipment can help build networks that are flexible and
scalable, as well as support multiple services on a single platform, according to a preliminary prospectus
filed with the Securities and Exchange Commission.
Optical products transmit data using pulses of light rather than electricity and the company, which plans to
change its name to ONI Systems Corp. from Optical Networks Inc. in conjunction with the IPO, said its
products are designed for regional and metropolitan networks.
Last year, ONI Systems had $3 million in revenue and posted $43.3 million in net losses, the prospectus
showed.
The company said it plans to use the net proceeds from the IPO for working capital, capital spending,
possible acquisitions and other general corporate purposes.
It did not disclose how many shares it plans to sell in the offering, or the per-share price, details expected
in future filings.
In December, Nortel Networks Corp. obtained a temporary order against several of its former employees
who now work for ONI Systems, prohibiting them from soliciting current Nortel Networks employees and
using certain trade secrets, the filing said.
One unidentified former Nortel Networks employee has been prevented from working for ONI Systems
at this time.
The order stems from an October 1999 suit that seeks to prevent ONI Systems from hiring more Nortel
Networks employees and banning the use of certain trade secrets.
While the company did not reveal which employees are the subject of the suit, the prospectus showed
Kenneth Calhoun, vice president of marketing, and Martin Desroches, vice president of operations, both
came from Nortel Networks.
Hugh Martin, 46, has been president and chief executive officer at the company since January 1998.
The $115 million figure in the IPO filing is merely a basis for calculating the SEC registration fee, the
company said. It has applied to trade its shares on Nasdaq under the symbol ``ONIS' (Nasdaq:ONIS -
news) once it goes public.
Goldman, Sachs & Co., Banc of America Securities LLC, Chase H&Q and Robertson Stephens are the
underwriters for the stock sale. |
