Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Angels of Alchemy -- Ignore unavailable to you. Want to Upgrade?

To: yossarian67 who wrote (9134)	8/19/2000 6:47:57 AM
From: noneed	Respond to of 24256

ITXI - a nice little write-up on worldfinance.com: worldfinancenet.com Integrated Telecom Express to $100 million Buoyed by the success of predecessors, Integrated soars in debut By Gracian Mack August 18, 2000 The opening price for Santa Clara, California-based Integrated Telecom Express (Nasdaq: ITXI) wasn’t all that hot, but if the company can follow the path set by other companies in the sector, its future should be smoking. The Offer Priced squarely in the middle of its expected $17 to $19 per share price range, Integrated shares opened at $18.25. Despite the yawn of an opening, lead underwriting manager Lehman Brothers (Nyse: LEH), assisted by co-managers by Bear, Stearns (Nyse: BSC), Wit Soundview (Nasdaq: WITC) and Fidelity Capital Markets, a division of National Financial Services Corporation ushered the stock to a high of $25.75 on the day. At the close of business on Friday, Integrated shares were up 38 percent from the offer price at $24.88 per share on volume of 10.9 million shares. Hot Market The company sells ADSL products, including integrated circuits, software, reference designs and development tools. Integrated’s Apollo Two chipsets are used in PC network interface cards to speed communications along computer networks based on asymmetric digital subscriber line (ADSL) technology. That product line represents some 87 percent of sales. For the six months ended June 30, 2000, Integrated posted a net loss of almost $11.5 million on revenue of $14.4 million. In the year-ago period, the company recorded a net loss of $7.3 million on revenue of $296,000. Domestic customers includes Xspeed, which accounts for 36 percent of sales, but a cumulative 55 percent of revenue comes from Asian manufacturers such as Bo Sung Hi-Net, Hundai Teletek, Nokia and Samsung. Armed with $100.8 million in proceeds from the IPO, Integrated is ready to do battle with a growing field of competitors. Precedent Set In May, Centillium Communications (Nasdaq: CTLM) launched its $76 million IPO. Offered at $19 per share, the stock closed at $22.88 each for a 20.4 percent first day gain. It recently traded at $69.13, an aftermarket trading gain of 263.8 percent. Further back, Virata (Nasdaq: VRTA) was a $70 million deal offered in November last year. Priced at a split adjusted $7 per share, Virata its first day at $13.28 per share, for an 89.7 percent gain. On Friday, the stock closed at $60.69, posting a 766.9 percent aftermarket gain. GlobeSpan Semiconductor (Nasdaq: GSPN) is another company in the space that has enjoyed a healthy aftermarket success. Offered in June, last year, Globespan shares priced at $15 each, closed at $42.31 and racked up a 182 percent first day increase. With a recent close of $130.38 per share, Globespan boasts a 769 percent positive aftermarket performance. If these companies are any indication of what the market will bear in this sector, Integrated’s run has just begun.