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IPOs stuck in online glut
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August 1, 1999: 5:04 p.m. ET
Massive influx of Internet repeats may leave Wall Street Webbed out
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NEW YORK (CNNfn) - Investors looking for a traditional manufacturing or defensive play in the IPO market this week will be sorely disappointed, although the flood of Internet offerings will likely provide Web-hungry investors with plenty of shares to gobble up.
Of the 23 companies throwing their hats into Wall Street's ring over the next few weeks, only five are not Internet-intensive businesses, and only two of them - return would-be debut Pacific Community Banking Group (PCBG) and car-audio manufacturer Rockford (ROFO) -- are not deeply entrenched in other areas of the high-tech sector.
Among the technological hopefuls, Silicon Valley legend, Fairchild Semiconductor (FCS) is the leading non-Net IPO this week. This marks the second time Fairchild - the seed from which National Semiconductor (NSM), Intel (INTC) and other microchip manufacturers grew - has gone public. The company, which began as a transistor manufacturer in 1957, was eventually bought by National Semi, only to be sold again in early 1997 to a consortium of Fairchild managers and Citicorp (C) investment arm Sterling LLC.
In the company's heyday, ex-employees known colloquially as "Fairchildren" populated the towns surrounding Sunnyvale, Calif., with start-up chip firms, relatively few of which now survive. Now based in South Portland, Maine, Fairchild is ramping up to meet Wall Street again on Wednesday, when it will price an offering of 20 million shares between $17 and $20.
The Fairchild IPO stands to dwarf the rest of the week's debuts, including software company Mission Critical (MCSW), which is pricing a relatively small 3.5 million shares between $14 and $16 on Thursday. The company makes software that helps system administrators run Windows NT-based computer networks.
Rounding out the week's list of non-Internet offerings are data storage manufacturer Datalink (DTLK), which will soon go head-to-head with computing giant IBM (IBM), and repeat contender Splitrock Services (SPLT), which markets access to its high-speed data network.
A sense of sameness on the Web
Among the week's profusion of Web plays, several are familiar to IPO watchers from previous delayed attempts to go public. GreatFood.com (GTFD) is an online retailer of gourmet foodstuffs, while Healthgate Data (HGAT), a perennial IPO hopeful, provides subscribers with medical news and information on the Web.
U.S. Interactive (USIT) provides consulting and technical services, while The Cobalt Group (CBLT) collects marketing and e-commerce material for automobile dealers to use in their Web sites.
Internet Capital Group (ICGE) also deals in e-commerce, but specializes in facilitating business-to-business Internet transactions, as do bigstar.com (BGST), which sells videos and DVDs, and 1-800-Flowers.com (FLWS), which sells gifts and floral products online.
New Internet flavors
Investors looking for a fresh scent on the Internet can also buy into 1-800-Flowers.com rival ftd.com (EFTD), which is set to go public this week as well. Of the two companies, ftd.com is by far the smaller, bringing in $30 million last year compared to 1-800-Flowers.com's $220 million. Moreover, ftd.com operated at a loss last year, while its larger competitor brought in $3 million in profits.
Interactive Pictures (IPIX), erroneously reported by some sources as originally set to go public the week of July 19, has developed a digital photographic technology that allows viewers to manipulate images over the Internet. To make its "immersive photography" an industry standard, the company has formed several alliances with IBM (IBM), Kodak (EK) and other technological heavyweights.
Braun Consulting (BRNC) creates software that makes it easier for Web companies to gauge the success of their Internet business ventures, while InterWorld (INTW) provides programs to the closely allied e-commerce market.
Bamboo.com (BAMB) is one of the smaller companies hitting Wall Street, with annual revenue of $77,000. The company provides "virtual tours" of real estate properties over the Internet. Homestore.com (HOMS) also provides Net real estate services, but had revenues of $19 million last year while accruing a $75 million loss.
Messaging applications, a hot technological news topic last week, are the stock in trade at Tumbleweed Software (TMWD), although the overwhelming threat of competition from Microsoft (MSFT) and America Online (AOL) may keep investors a bit nervous about the company's ability to win its chosen market.
Finally, Women.com (WOMN), a female-centered Web portal, and HotJobs.com (HOTJ), an online help-wanted service, are both reminiscent of other Internet companies trading on Wall Street. Women.com competes with iVillage (IVIL) for the eyes of female Internet users and HotJobs.com operates in the same broad arena as CareerBuilder (CBDR). 
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