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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: Mighty Mizzou who wrote (14512)	9/6/2000 6:43:36 PM
From: John Nasser	Read Replies (1) \| Respond to of 14577

Intellon, Networking Through Electric Lines, Plans $86 Mln IPO By John Rega Washington, Sept. 6 (Bloomberg) -- Intellon Corp., a developer of technology connecting home computers to the Internet through power lines, filed for an initial public offering estimated to raise as much as $86.3 million. The Ocala, Florida-based company's PowerPacket chips send and receive data communications over the wires in the wall of every electrified home, allowing Internet access fast enough to transmit video and audio signals, according to its IPO filing with the Securities and Exchange Commission. ``Consumers can achieve reliable, secure communications simply by plugging devices into electrical outlets,'' Intellon said in its SEC filing. The company plans to begin shipping the product to computer equipment makers in the second quarter of next year, the filing added. Intellon's technology is being pushed as a standard for electrical-wire networking by the HomePlug Powerline Alliance, a trade group that includes Intellon. 3Com Corp., Motorola Inc. and S3 Inc., also listed as group members, are customers of Intellon as well, the filing said. Those companies and others, including AT&T Corp., Nortel Networks Corp. and Fujitsu Ltd., are evaluating PowerPacket prototypes and plan to include Intellon's technology in their future products, according to the filing. Use of Proceeds S3 and Motorola also are investors. They are slated to receive an unspecified portion of the proceeds from Intellon's IPO as payment of past dividends accrued to their preferred stock. Other Intellon shareholders include Compaq Computer Corp., Conexant Systems Inc., and an affiliate of Fidelity Investments, according to the filing. Intellon said the remainder of the stock-sale proceeds would go for general purposes and possibly acquisitions, although no purchases are in the works now. ``We currently anticipate that the net proceeds from this offering, together with our existing cash balances, will be sufficient to meet our anticipated needs for working capital for at least the next twelve months,'' Intellon said in the filing. Intellon left blank for now the amount it ultimately expects to reap by going public. It filed for the IPO without specifying the number or price of common shares being offered to new investors. The stock sale's $86.3 million value was estimated only as a basis for calculating the SEC registration fee. The corporation dates to 1986, though it was essentially founded as a communications chip developer in 1989 by current Chairman James Vander May, 58. Horst Sandfort, also 58, was hired as chief executive in 1997, according to the filing. The company has brought to market an older, slower version of its power-line communications technology, which is used in brake sensors on tractor trailers, among other uses. Revenue from those products and some technology licensing activities amounted to $3.1 million in the first half of this year, a 23 percent decline from $4 million in the first half of 1999. The company's net loss meanwhile grew to $3.3 million as expenses mounted in this year's first half from a $362,000 loss in the same period a year ago. Merrill Lynch & Co. and plans to underwrite Intellon's IPO, with Bear, Stearns & Co. and Wit SoundView Group Inc. Intellon plans to list the shares on the Nasdaq Stock Market under the symbol ILON.