Triton Network Boosts IPO Share Price to $13-$15 From $10-$12
Washington, July 12 (Bloomberg) -- Triton Network Systems Inc., a provider of equipment to set up high-capacity fixed- wireless networks, will offer more than 5 million shares of common stock in a public offering worth $77 million.
The company, based in Orlando, Florida, will sell 5.5 million shares, about 16 percent of the total shares available, at a per share price of $13 to $15 each, according to a filing with the Securities and Exchange Commission.
If the shares sell in the middle of the range at $14 a share, the offering would be worth $77 million. The target price represents an increase from Triton's previous filing on Monday when the company pegged its share price at from $10 to $12.
The company said it would receive about $70 million in proceeds from the stock sale, assuming a price of $14 per share and after underwriting expenses are deducted. Proceeds are to used for general corporate purposes, including possible acquisitions, the filing said.
Triton's revised IPO filing comes amid a recent rise in IPO prices that had slumped from a high on March 10. From then until the end of May, IPO stock values dropped 54 percent, according to the Bloomberg IPO index. Since June 1, IPOs have recovered about half of that value, climbing 27 percent.
First Revenue
Founded in 1997, Triton received its first orders in December, entering into three-year supply contracts with Advanced Radio Telecom Corp. and CenturyTel Inc.
The company recorded its first revenue of $3.5 million in the first quarter of this year, with a net loss of $10.9 million for the quarter, the filing said. Triton posted net losses of $31.9 million in 1999 and $17.2 million in 1998. It has an accumulated deficit of $62.5 million as of March 31, the filing said.
Howard Speaks, 52, is chief executive of Triton. He was previously executive vice president and general manager of the network operators group at Ericsson AB.
Triton sells its products under the name Invisible Fiber. The equipment includes transmitters and receivers, which are placed on building rooftops to form what are called consecutive point networks. These networks consist of links that form a ring, letting Internet and voice traffic flow in either direction, reducing the risk of service interruptions.
The company competes with Digital Microwave Corp., Harris Corp., and P-Com Inc.
Triton hired Credit Suisse First Boston, Deutsche Banc Alex. Brown, and U.S. Bancorp Piper Jaffray to market its shares to the public. Triton plans to have its shares trade on the Nasdaq Stock Market under the symbol ``TNSI.''
Jul/12/2000 12:03 ET
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