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Crossroads IPO up 337%
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October 20, 1999: 4:46 p.m. ET
Computer router provider is among the best first day performers in history
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NEW YORK (CNNfn) - Crossroads Systems Inc., an Austin, Texas provider of storage routers for storage area networks, saw its IPO more than quadruple its offering price in its first day of trading Wednesday to close up 337 percent.
The stock, trading on NASDAQ under the symbol CRDS, had an $18 offering price. It opened at $36-1/4. It closed at 78-23/32, a gain 60-23/32, after reaching as high as 85-13/16.
According to Thomson Financial Securities Data, the best first-day performer was theglobe.com Inc., which went from a offer price of 9 to a closing price of 63-1/2 on Nov. 12, 1998, a gain of 606 percent. The gain at Crossroads put it fourth on the list behind three Internet firms: theglobe.com, MarketWatch.com Inc., which posted a 474 percent gain during its first day of trading Jan. 15, 1999, and Ask Jeeves Inc., which was up 364 percent on June 30, 1999.
Crossroads saw some of the run-up even before the stock started trading. After initially setting the IPO range at $11-13 per share, it notified the Securities and Exchange Commission on Monday that was raising that range to a range of $14-16. It then picked an opening price above that at $18.
Crossroads is a four-year old, rapidly growing company. It began shipping product in July, 1997. It lost $5.4 million, on revenue of only $3.2 million in the fiscal year ending Oct. 31, 1998. For the quarter ending July 31, the company had a net loss of $2.1 million on revenue of $5.1 million.
 Reuters contributed to this report
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Crossroads Systems
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