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Efficient Networks makes great first impression

    Efficient Networks Inc. (Nasdaq: EFNT) closed up 36 1/8, or 241 percent, to 51 1/8 Thursday in its initial public offering. After opening at 46 1/2, the stock moved as high as 54 1/2 in early trading.

    Efficient Networks priced its 4 million-share offering at $15 a share Wednesday after bumping its price range to $13 a share to $15 a share.

    CS First Boston served as lead underwriter while BancBoston Robertson Stephens and Volpe Whelan Brown co-managed the offering.

    In its latest nine-month period, Efficient Networks lost $13 million, or $3.48 a share, on sales of $7.1 million.

    Last year, it lost $7.9 million, or $2.44 a share, on sales of $3.3 million.

    "This has all the ingredients of an IPO 'hit'," Irv DeGraw, research director at said in his weekly report. "Expect a first-day moonshot, followed by aftermarket appreciation."

    Efficient Networks sells its products to network equipment vendors and DSL network service providers. Efficient's customers include BellSouth Corp. (NYSE: BLS), Covad Communications Group (Nasdaq: COVD) and Hong Kong Telecom.

    Analysts say the IPO was boosted by its relationship with Texas Instruments Inc. (NYSE: TXN), a principal stockholder in Efficient Networks.

    Efficient competes with 3Com Corp. (Nasdaq: COMS), French telecommunications group Alcatel and Cisco Systems Inc. (Nasdaq: CSCO).

    Efficient Networks isn't the only DSL company planning an IPO this week.

    Paradyne Corp. (Proposed ticker: PDYN) will hit the Street Friday. It raised its price range from $12 a share to $14 a share to $14 to $16 a share Wednesday.

    Paradyne makes broadband and narrowband network access products for network service providers and business customers.

    Donaldson Lufkin Jenrette will serve as lead underwriter of the 6 million-share offering.>