July 31, 2003
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Networking technology maker Netgear said Thursday that it has raised $98M in an initial public offering.
By Sandeep Junnarkar
The company said it sold 7M shares of its common stock at $14 a share--the top of the range of $12 to $14. The company had raised the price range from $10 to $12 a day earlier, according to the registration statement filed with the Securities and Exchange Commission on Wednesday.
Netgear will begin trading Thursday under the symbol "NTGR" on Nasdaq.
According to the prospectus filed with the SEC on Thursday, Netgear will have about 27.22M shares outstanding, giving the Santa Clara, Calif.-based company a market value of nearly $381M.
Lehman Brothers acted as the lead underwriter. Merrill Lynch and UBS Investment Bank acted as co-managers. Netgear gave the underwriters a 30-day option to purchase an additional 1.05M shares at the IPO price to cover over-allotments, if any.
This is Netgear's second try at an IPO. The company initially filed to go public in the fall of 2000 but postponed the offering due to market conditions.
The company designs and markets networking products aimed at meeting the needs of small businesses and home users. Netgear was incorporated in 1996 as a subsidiary of Bay Networks, which was itself acquired by Nortel Networks in 1998. Netgear remained a subsidiary of Nortel until 2002 when Nortel sold its remaining interest in the company.
Netgear reported net revenue of $67.7M for the quarter that ended March 31, compared with $45.5M for the same period the previous year. The company posted a gross profit of $18.5M for the quarter that ended March 31, an increase from $10.8M in the year-ago period. Net income in the quarter that ended March 31 was $1.6M, compared to $537,000 in the year-ago period.
In the most recent quarter, which ended June 29, the company posted net revenue of $69M, with gross profit of $19.1M and income from operations of $3.3M. The company did not give results for the comparable quarter in 2002.
Netgear noted, however, that the numbers were unaudited results that may fluctuate once the figures are final.
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