-- [B] Friday's IPOs: Deals expected to open Sept. 29 --
By Scott Reeves, BridgeNews
New York--Sept. 28--The following initial public offerings are expected to
open Friday:
--Elastic Networks Inc. (ELAS) of Alpharetta, Ga., a designer and marketer
of high-speed digital subscriber line products, plans to offer 7.8 million
shares at $10 to $12 each via Chase H & Q.
Opinion: This will be one of the strongest deals of the week.
Elastic Networks has designed products with what it calls "Etherloop"
technology, which is designed to enhance digital subscriber line, or DSL, by
using Ethernet technology.
DSL allows service providers to provide customers with broadband Internet
access over existing copper phone wires by using digital signals. DSL can
deliver traffic to customers at speeds up to 100 times faster than the
traditional analog technology used in dial-up Internet connections.
Ethernet technology enables Internet traffic to flow more efficiently by
slicing large amounts of data into small packets and transmitting them in short
intervals.
By combining Ethernet and DSL technologies, Etherloop is designed to more
efficiently use existing bandwidth by constantly monitoring network
requirements. As more users are demanding increased bandwidth it has become
vital that telecommunications use their bandwidth at close to peak efficiency.
Etherloop is designed to meet that requirement.
Elastic's customers include BellSouth Communications Systems, CAIS
Internet, Citizens Communications, Darwin Networks, Everest Broadband Networks,
Oregon Trail Internet, UniversalCom, Beijing Keval On-Line Technology,
Coventus, New T & T Hong Kong and OverNet.
For the six months ended June 30, Elastic Networks posted a net loss of
$13.2 million on revenues of $14.6 million, compared with a net loss of $8.7
million on revenues of $2.6 million during the same period a year ago.
The company was formed in January 1997 by Nortel Networks Inc., and began
operating as independent concern in May 1999. After the IPO, Nortel Networks
Inc. and Nortel Networks Limited will own about 46% of Elastic's outstanding
shares.
Deals that expand or improve network capacity have consistently rewarded
investors with big gains. Recent winners include Sycamore Networks (SCMR),
Juniper Networks (JNPR) and Copper Mountain Networks (CMTN).
Although Elastic Networks isn't a fiber optic deal, it should perform well.
Look for a strong opening and a good first day. |
