To: Voltaire who wrote (52930 ) 12/7/1999 1:40:00 PM From: Jenne Read Replies (1) | Respond to of 152472
NEW YORK, Dec 7 (Reuters) - Shares of AirNet Communications Corp. <ANCC.O> were the highest percent gainers on the Nasdaq in midday trading Tuesday, after the company raised $77 million from its 5.5 million share initial public offering. Shares of the Melbourne, Fla.-based wireless company opened at $35 a day after pricing at $14, above range, through Salomon Smith Barney. Shares last traded up 28-1/2 to 42-1/2, a gain of over 200 percent. AirNet provides wireless base stations and other telecommunications equipment designed to allow service operators to offer wireless high-speed Internet and voice services to mobile subscribers. Specifically, AirNet provides base stations to support the Global Standard for Mobile Communications, a system of mobile voice and data transmissions. Wireless has been a sector of heavy investor interest, buoyed by Nasdaq climber Qualcomm Inc. <QCOM.O> and the recent announcement by AT&T Corp. <T.N> to spin off its own wireless unit. Analysts see AirNet's position in the industry as helping its successful debut. "(There is) a lot of interest for all things wireless," said Kenan Pollack at Hoover's Online, the online division of Hoover's, which offers an electronic database of companies. "It's a huge growth market...(with) a lot of interest and excitement." Jeff Hirschkorn, senior market analyst at IPO.com, agreed that AirNet is benefiting from a hot wireless market, but voiced long-term concerns for the company. Citing AirNet's low-profile customer base, Hirschkorn said, "You hear of all these small names ... down the road, where (is AirNet) going to go?" According to AirNet's filing with the Securities Exchange Commission, customers such as Message Express Co. and Panhandle Telecommunications Systems, Inc. accounted for 10 percent or more of the company's revenue for the nine months ended Sept. 30 or the year ended Dec. 31, 1998. For the nine months ended Sept. 30, AirNet had net revenues of over $11 million and a net loss of about $11.3 million. There are over 22 million shares outstanding following the IPO.