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IPO update: Breakaway breaks away, Silicon Image doubles, rises a bit

Breakaway Solutions (Nasdaq: BWAY) did just that.

An initial public offering for e-business service provider more than tripled in its Wednesday debut, up more than 233 percent in mid-afternoon trading at 46 11/16.

Breakaway tagged its 3 million shares at $14 each, the top of its upwardly revised range. The Boston-based e-business services company, increased its pricing range from $10-12 to $12-14. The deal is lead by managing underwriter Morgan Stanley Dean Witter, with Lehman Brothers and Deutsche Bank Alex. Brown assisting.

The company has tailored its e-business services to target companies or divisions of larger companies that have sales of up to $1 billion per year; and new and emerging Internet-based businesses.

For the six months ended June 30, the company had loss $2.5 million of on revenue of $7.6 million, as compared to a loss of $1.5 million on revenue of $5.8 million for the same period in 1998.

Risks cited in the company's regulatory filings include a history of losses, and the concentration of 27 percent of 1998's revenue in a single client.

Two others went public for Wednesday. Silicon Image also priced at the top of its upwardly revised ranges for trading Wednesday, while slunk onto the stage after pricing at the bottom of its deflated range.

  • Silicon Image's initial public offering took off like a rocket Wednesday, more than doubling almost immediately.

    The Cupertino, Calif.-based chipmaker, which priced at 12, hit the trading floor at 23 and shot as high as 29 3/4. The stock was at 27 3/8 in early afternoon.

    Silicon Image (Nasdaq: SIMG) is focusing its technology on the local interconnect between host systems, such as PCs, set-top boxes and DVD players, and digital displays, such as flat panel displays and CRTs.

    Silicon Image had net loss of $3.9 million on revenue of $7.7 million for the six months ended June 30, compared to a net loss of $3.1 million on revenue of $2.6 million for the same period in 1998.

    Risks cited include the company's accumulated deficit of about $16.7 million, and the reliance of its business strategy on the rapid and widespread adoption of the DVI specification, which defines a high-speed data communication link between host systems and digital displays.

  • (Nasdaq: DSLN) saw a mild debut, up 19 percent to 8 15/16.

    The company priced at $7.50, the bottom of its range. The company planned to offer 7.2 million shares with a price range between $7.50-$8.50, after cutting its offering from 9.6 million shares priced between $8 and $10. In August, the price range was $10 to $12.

    Deutsche Banc Alex. Brown is the lead underwriter with an assist from Donaldson, Lufkin & Jenrette and Lehman Brothers.

    There's a good reason is pricing at the low end of a three-times revised price range.

    "This still sounds like an ISP to me," said Francis Gaskins, editor of the Gaskins IPO Desktop. "These guys have nothing proprietary and by any quantitative measure it looks bad."

    For the six months ending June 30, had revenue of $184,173 and a loss of $6.5 million. For 1998 (March inception to Dec. 31), had sales of $3,489 and a loss of $2.7 million.