Sunrise Telecom (Nasdaq: SRTI), maker of testing equipment for telecom and Internet networks, was up 20 1/2 to 35 1/2, or 137 percent in debut Thursday. The company priced 4 million shares at $15 each, above its $11-$13 range, after the range was raised from an original $10 to $12 a share.
The company, which turns a good profit, makes digital subscriber line (DSL) testing equipment that allows providers to install and verify broadband service over copper lines.
For the year ended December 31, Sunrise had net income of $10.9 million on revenue of $61.5 million, as compared to an income of $3.4 million on revenue of $28.5 million in 1998.
Its largest customers over this period have been affiliates of SBC Communications Inc. (NYSE: SBC), which include Pacific Bell Telephone Company, Southwestern Bell Telephone Company, Ameritech Corporation, Nevada Bell and Southern New England Telephone. In total, these affiliates counted for about 40.6 percent of sales in fiscal 1999.
The company's competitors include Digital Subscriber Line TTC (a division of Dynatech) and Agilent Technologies (NYSE: A) and Digital Lightwave (Nasdaq: DIGL).
The deal's lead underwriter is Chase H&Q. Co-managers include Banc of America and CIBC World Markets.
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