well, steve at cbs marketwatch agrees with me<gg>.
Optical Communication
Optical Communication shares closed at $17.88, well above its $11 price.
The stock opened at $18, and rose as high as $20.50 before settling down slightly on volume of 13.7 million.
It's raising $116 million by offering 10.5 million shares.
The company drew pick-of-the-week status from David Menlow of IPOfinancial.com, who pointed out its nine-year history. Its largest shareholder is Japan's Furukawa Electric, which owns 70.3 percent.
From 1995 through 1999, the Chatsworth, Calif.-based company's sales grew an average of 62 percent. Gross margins averaged 17 percent. Profits grew an average of 82 percent.
"All these wonderful financial medals can be pinned on the company's chest, yet the timing of the IPO is somewhat awful," Menlow said.
The company makes high-performance optoelectronic subsystems and modules for data networks.
"We have established a track record of delivering a comprehensive line of high-performance, cost-effective fiber-optic subsystems and modules to our customers supported by volume production capabilities," the company said in its IPO documents.
Revenue was $36 million for 1999 and $69.1 million for the nine- month period ended June 30.
Optical Communications' customers include a telecom who's who -- 3Com, ADC Telecommunications, Alcatel, Ciena, Chromatis Networks, Cisco Systems, ECI Telecom, Lucent Technologies, Marconi Communications and Nortel Networks. |
