Ulticom, Vyyo make sharp debuts
Ulticom (Nasdaq: ULCM), a provider of signaling software for voice and data communications networks, closed up 7, or 54 percent, to 20 after it priced 4.25 million shares at $13 each.
The company raised its range to $13 to $15 a share from an original $10 to $12 a share.
The company makes SS7, or signaling system #7 software for use in wireless, wireline and Internet communications services. The lead underwriter for its IPO is Lehman Brothers.
Unlike most companies going public, Ulticom actually had net income. For the year ended Jan. 1, the company had net income of $1.6 million on revenue of $25.8 million, as compared to an income of $1.6 million on revenue of $18.6 million in 1999.
Ulticom said sales to international customers accounted for 63 percent of revenue for fiscal 1999, up from 50 percent of 1998's revenue.
Competitors for the company's present and planned future products include signaling system #7 software solution providers, such as ADC NewNet and Trillium Digital Systems, to vendors of communication and network infrastructure equipment, such as Hewlett Packard (NYSE: HWP) and Compaq (NYSE: CPQ).
Vyyo had planned to offer its 6.75 million shares between $13 and $15 a share. Earlier this month, the company had said it would offer 4.25 million shares of common stock for between $18-$20 per share in the offering.
The company said it will actually net more from the offering based on the new terms, approximately $86.3 million instead of $73.5 million, and will use the funds for research and development, working capital and other general corporate purposes.
There will be about 33.7 million shares outstanding after the offering, which is being underwritten by Banc of America Securities LLC.
For the year ended December 31, Vyyo had a net loss of $43.6 million on revenue of 4.2 million, compared to a net loss of $7.7 million on revenue of $2.4 million for 1998.
The company said it relied on ADC Telecommunications (Nasdaq: ADCT), which accounted for about 20 percent of our net revenue for 1999.
VYYO considers Hybrid Networks, Inc. its main competitor. It also said companies such as Cisco Systems (Nasdaq: CSCO), Lucent Technologies (NYSE: LU), Nortel Networks (NYSE: NT), Newbridge Networks (NYSE: NN) are potential entrants into the broadband wireless market.