NEW YORK (CNNfn) - Sonus Networks, a provider of hardware and software products that let companies deliver voice services over packet-based networks, surged 120 percent, reflecting the continued strength of the infrastructure sector in a sputtering IPO market.|
Thursday's other IPO, radio frequency components supplier Stanford Microdevices, climbed 28 percent.
Sonus (SONS: Research, Estimates), which raised $115 million, more than doubled its offer price, closing Thursday up 27-1/2 at 50-1/2 after pricing five million shares at $23, above the target range of $19 to $21. The stock, sold through underwriters led by Goldman Sachs, opened at 32 and traded as high as 51 5/8. Volume was 12.4 million shares.
The week's most anticipated deal, from ONI Systems Corp., a developer of optical networking equipment, is slated to price on Thursday and trade Friday. ONI Systems plans to offer eight million shares at $21 to $23 each, up from the original $14 to $16 a share, through underwriters led by Goldman Sachs. The company's proposed Nasdaq symbol is ONIS.
Sonus' strong market debut
Westford, Mass.-based Sonus surprised analysts with its powerful opening. "I thought they would have a decent opening pop, but didn't expect anything this big," said Corey Ostman, co-chief executive and chief technology officer of Alert-Ipo.com, a Los Angeles-based research Web site targeting the IPO market. "They are a real company, with real products."
Ostman said he was encouraged by Sonus' performance, indicating that there is still life in an IPO market beaten down by the recent technology stock sell-off. "It's too early for a rebound though, and the market is still very selective," Ostman said.
Sonus offers voice infrastructure products to communications service providers such as long-distance carriers, local exchange carriers and Internet service providers as a means to speed network traffic.
Communications providers are building packet-based networks that transport traffic in small bundles. Packet-based networks are an alternative to traditional circuit-switched telephone networks that have been in use since before the advent of the Internet. Circuit-switched networks carry information along old analog lines that are unable to handle huge volumes of Internet traffic, while packet-based networks are cheaper and more flexible.
Sonus plans to use proceeds for general corporate purposes, including working capital and capital expenditures. Customers include Global Crossing, Intermedia Communications and Williams Communications. Competitors include Cisco Systems, Lucent Technologies, Nortel Networks, Siemens and Tellabs.
For the three months ended March 31, Sonus reported a net loss of $16 million on revenue of $1.1 million, compared with a loss of $4 million on no revenue a year earlier.
Another good wireless deal
Stanford Microdevices closed Thursday afternoon at 15 3/8 after pricing four million shares at $12, the low end of its $12 to $14 range. The shares, sold through underwriters led by DB Alex. Brown, opened at 13-3/4 and rose as high as 15-7/8. Volume was 5.2 million shares.
Sunnyvale, Calif.-based Stanford, which raised $48 million, provides radio frequency components used in wireless communications equipment to improve voice and data reception. It began operations in 1985 as Matrix Microassembly Corp. and then in 1992 changed to Stanford Microdevices.
Stanford (SMDI: Research, Estimates) plans to use proceeds for working capital and general corporate purposes.
For the three months ended March 31, Stanford reported net income of $206,000 on net revenue of $7.3 million, compared with net income of $114,000 on net revenue of $2.9 million a year earlier.
Minicircuits Laboratories accounted for 39 percent of net revenue for the quarter ended March 31, while Avnet Electronics Marketing contributed 24 percent of net revenue. Competitors include Agilent, Anadigics, Conexant, Infineon, M/A-COM, Minicircuits Laboratories, NEC, RF Micro Devices, TriQuint Semiconductor, Watkins-Johnson, Ericsson, Lucent, Motorola and Nortel Networks.
After the IPO, major shareholders include Stanford Chairman John Ocampo and treasurer Susan Ocampo, as well as entities affiliated with Summit Partners.
California Pizza's $70 million IPO
Separately, California Pizza Kitchen filed with the Securities & Exchange Commission Thursday for a $70 million IPO. Underwriters Banc of America Securities and DB Alex. Brown are co-leads on the deal. Thursday's filing did not disclose share price or range. The deal is expected to price, at the earliest, by late July, DB Alex. Brown said.
Los Angeles-based California Pizza is a casual dining restaurant chain offering a variety of pizzas to consumers including Philly Cheesesteak pizza, Havana Chicken pizza and Grilled Garlic Shrimp pizza. The 15-year-old company owns, licenses or franchises 100 restaurants in 21 states, the District of Columbia and three foreign countries.
For the three months ended April 2, California Pizza reported net income of $2 million on revenue of $48.3 million, up from $1.2 million on revenue of $42 million a year earlier.
California Pizza intends to use the proceeds to repay $40 million in outstanding debt and for other general corporate purposes. The company's proposed Nasdaq symbol is CPKI.
California Pizza's deal follows the May 10 filing by gourmet food retailer Dean & Deluca, of New York, for a $69 million IPO. Dean & Deluca operates 14 locations -- eight cafes, five markets and one wine store -- and specializes in gourmet foods such as caviar, fois gras and truffles and high-end kitchenware.