Veraz Networks marks latest money-losing tech firm
By Steve Gelsi
Apr 3, 2007 12:22:00 (ET)
NEW YORK (MarketWatch) - Veraz Networks expects to raise about $99 million in its initial public offering this week as the latest in a mini-series of tech firms to catch Wall Street's fancy despite red ink in their bottom lines.
San Jose, Calif.-based Veraz Networks (VRAZ, Trade ) plans to offer 9 million shares at $10-$12 a share with underwriters Credit Suisse and Lehman Brothers.
The maker of voice over Internet protocol gear for telecom carriers reported a 2006 net loss of $14 million on revenue of $100 million, compared to a loss of $14.3 million on revenue of $76 million in the year-ago period.
While Veraz has yet to turn a profit, it offers strong revenue gains and a track record dating back to its origins in 2001 under the names Softswtich Enterprises and later NexVerse Networks,
In 2002, the company changed its name to Veraz Networks after receiving financing from Israel's ECI Telecom and purchasing two units of the company.
"Veraz appears to have a well regarded IP product offering that is experiencing rising traction in a growing and potentially large market," Renaissance Capital said in its IPO of the week column.
Still, it faces plenty of competition from Sonus Networks (SONS, Trade ), Nortel (NT, Trade ) , Cisco (CSCO, Trade ), Siemens (SI, Trade ) and Alcatel-Lucent (ALU, Trade ). |
