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Technology Stocks : NHC COMMUNICATIONS (TSE:NHC) acquiring THE FIBER COMPANY -- Ignore unavailable to you. Want to Upgrade?

To: Lalit Jain who wrote (103)	1/29/2000 12:26:00 AM
From: Lalit Jain	Respond to of 856

cleto, Turnstone Systems IPO WASHINGTON, Jan 12 (Reuters) - Turnstone Systems Inc., whose software lets local exchange carriers deploy digital subscriber line (DSL) services on existing copper telephone lines, set Wednesday its initial public offering at 3 million common shares that may be priced between $15-17 apiece. Under the middle of that range, the Mountain View, Calif.-based company figured it would make about $43.4 million after expenses, which it would use for general corporate purposes, including working capital and capital expenditures. The proceeds could also be used for potential acquisitions of, or investments in, businesses, technologies and products, according to a Securities and Exchange Commission filing. It was the first time that Turnstone disclosed the terms of the offering since it initially filed its IPO prospectus with the SEC in late November. The company has applied to trade the shares on Nasdaq under the symbol (NasdaqSC:TSTN - news). If there were heavy demand for the 3 million shares, which would equal about a 10.2 stake in Turnstone, then the underwriters led by Goldman Sachs have an option to buy 450,000 more shares. The company's only volume product is the Copper CrossConnect CX100, which is currently being installed in telephone company central offices by competitive local exchange carriers to speed their deployment of DSL services. DSL technology, which takes advantage of unused capacity on existing phone lines, allows customers to use a single line to send faxes or make phone calls while using the Internet. Turnstone began shipping the CX100 in the first quarter of 1999 and sells it both through a direct sales force and through an original equipment manufacturer deal with Lucent Technologies Inc. (NYSE:LU - news), the filing said. In the year ended Dec. 31, 1999 Turnstone shipped more than 2,500 CX100 systems and posted $27.2 million in revenues, incurring a net loss of $183,000. In the same period, Rhythms NetConnections Inc. (NasdaqNM:RTHM - news) accounted for 41 percent of Turnstone's revenues while Network Access Solutions Corp. (NasdaqNM:NASC - news) accounted for 19 percent. Fifteen percent of Turnstone's revenues were generated through its relationship with Lucent.