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NetScreen IPO surges 48%
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December 12, 2001: 12:20 p.m. ET
Developer of security systems gains nearly 48% on Nasdaq in first day.
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NEW YORK (CNN/Money) - The initial public offering from NetScreen Technologies Inc., a developer of security systems and appliances, surged by 48 percent on the Nasdaq Wednesday.
Shares of NetScreen (NSCN: Research, Estimates) opened at $23.76, a high of $24.46 and closed at $23.72.
The NetScreen offering extends the winning streak for technology-related IPOs. Last week, Lawson Software Inc. (LWSN: up $0.65 to $17.80, Research, Estimates) a provider of enterprise software, surged 13 percent in its market debut which followed the strong showing from Magma Design Automation Inc. (LAVA: down $0.36 to $20.44, Research, Estimates) which gained 46 percent in late November.
Sunnyvale, Calif.-based NetScreen raised $160 million late Tuesday when it sold 10 million shares at $16 per share through lead underwriter Goldman Sachs. NetScreen early this week bumped up the size of its deal to 10 million shares at $12 to $14 a share, from 8 million at $9 to $11.
Unlike most companies tapping the equities markets now, NetScreen is not profitable with $31.3 million in losses on $85.6 million revenue. In fact, the company states in its most recent filing with the Securities and Exchange Commission: "We anticipate continued losses and may not achieve profitability," NetScreen said. 
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