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Technology Stocks : Redback Networks, Inc. (RBAK) -- Ignore unavailable to you. Want to Upgrade?

To: ftmp who wrote (7)	5/18/1999 10:59:00 AM
From: William F. Wager, Jr.	Respond to of 1956

Redback Networks Inc. Announces Initial Public Offering SUNNYVALE, Calif.--(BUSINESS WIRE)--May 18, 1999--Redback Networks Inc., a leading provider of advanced networking solutions that enable rapid deployment of broadband access, today announced the initial public offering of its common stock on the Nasdaq National Market under the symbol ''RBAK.'' The initial public offering price for the 2,500,000 shares, all of which were offered by Redback Networks Inc., was $23 per share. The initial public offering price of $23 per share represents a material increase from the offering range of $12 to $14 set forth on the preliminary prospectus. The company has granted the underwriters an option to purchase up to an additional 375,000 shares of common stock to cover over-allotments, if any. The offering was led by Morgan Stanley Dean Witter and co-managed by BancBoston Robertson Stephens and Dain Rauscher Wessels, a division of Dain Rauscher Incorporated. A copy of the final prospectus may be obtained from the offices of Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, New York, 10036. Net proceeds from the offering are expected to be used for general corporate purposes, including capital expenditures and working capital. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About Redback Networks Inc. Founded in 1996 and headquartered in Sunnyvale, Calif., Redback Networks Inc. is a leading provider of advanced networking solutions that enable carriers, cable multiple system operators (MSOs), and service providers to rapidly deploy high-speed broadband access to the Internet and corporate networks. The company's Subscriber Management System(TM)(SMS) connects and manages large numbers of subscribers using any of the major high-speed access technologies such as Digital Subscriber Line (DSL), cable, and wireless. Redback and the Subscriber Management System are trademarks of Redback Networks Inc. Other trademarks, service marks, and trade names belong to their respective owners. Contact: Gallagher PR Lucy Scott, 510/749-6800, ext. 222 lucy@gpr.com or Redback Networks Inc. Geoffrey Darby, 408/548-3500 gdarby@redback.com

To: ftmp who wrote (7)	5/18/1999 11:32:00 AM
From: William F. Wager, Jr.	Read Replies (1) \| Respond to of 1956

Redback Networks and Nextera Enterprises to kick off this week's new issues market Two new issues - broadband access networking systems provider Redback Networks (RBAK) and business consultant Nextera Enterprises (NXRA) - priced Monday night and will begin trading on Tuesday. Although they were the first two IPOs of the week, their pricing circumstances were vastly different. Redback Networks, a play on the high-growth DSL market, priced well above its raised range at $23 a share. Nextera Enterprises, on the other hand, priced at the low end of the range at $10 a share. from the IPO-Fund website

To: ftmp who wrote (7)	5/18/1999 1:34:00 PM
From: William F. Wager, Jr.	Read Replies (1) \| Respond to of 1956

DJ Redback Networks Shares Triple From $23 IPO Price By Dunstan Prial NEW YORK (Dow Jones)--A recent crop of Internet infrastructure companies has stolen some of the initial public offering spotlight from pure Web deals. Redback Networks Inc. (RBAK) took center stage Tuesday. The Sunnyvale, Calif., company makes advanced networking systems that allow for high-speed access to the Internet. Redback raised $58 million through the sale of 2.5 million shares at $23 each. Strong pre-pricing demand from institutional investors allowed Redback and its underwriters, led by Morgan Stanley Dean Witter, to increase the estimated price range to $18 to $20 from $12 to $14. Even so, the final sale price was established at a figure well above the amended range. The stock has tripled in value in early trading, changing hands recently at 69 on Nasdaq Stock Market volume of 1 million. The company's prospectus says Redback's products connect and manage large numbers of subscribers using all of the current telecommunications technologies, include digital subscriber lines, which provide high-speed Internet access over existing telephone, cable and wireless systems. In recent weeks, so-called Internet infrastructure companies have outperformed their more high-profile Web-related cousins. For example, shares of Copper Mountain Networks Inc. (CMTN), which makes parts used in digital subscriber line, or DSL networks, exploded into the public markets last week, tripling in their first day. And the stock has held its gains, trading recently at 64 1/8, up 205% from the $21 offering price. Meanwhile, a much-anticipated offering from online financial news site TheStreet.com Inc. (TSCM) got off to a promising start, but has since slipped. The stock hit a high of 71 1/4 on its first day, but changed hands recently at 45, a 137% premium to the $19 IPO price. Other recent infrastructure companies that have completed successful IPOs include Covad Communications Group (COVD), NorthPoint Communications Group (NPNT), and Rhythms Netconnections Inc. (RTHM). All three are building DSL networks. Analysts say many investors prefer the relative stability of Internet infrastructure companies to potential-laded but risky pure-play Internet concerns. Not that infrastructure companies aren't risky. Redback, similar to most of its high-tech start-up brethren, is losing money. The company reported losses of $3.8 million on revenue of $6.5 million for the three months ended March 31. During the same period in 1998, Redback lost $2 million on revenue of $478,000. The company was founded in August 1996 and began shipping its products in the second quarter of 1998, according to the prospectus. And in a sentence found in virtually every Internet prospectus, Redback acknowledges: "We have not achieved profitability and we expect to continue to incur net losses in the future." The IPO represented a 12% stake in the company. With 21 million shares outstanding the sale created a market capitalization for Redback of $1.4 billion.