Netgear raises nearly $100m
Published: 31 Jul 2003 16:00 BST
Networking technology maker Netgear announced on Thursday that it has raised $98m (£60.6m) in an initial public offering.
The company said it sold 7 million 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 trade beginning Thursday under the ticker symbol "NTGR" on the Nasdaq National Market.
According to the prospectus filed with the SEC on Thursday, Netgear will have about 27.22 million shares outstanding, giving the California-based company a market value of nearly $381m.
Lehman Brothers acted as the lead underwriter, while Merrill Lynch and UBS Investment Bank acted as co-managers. Netgear gave the underwriters a 30-day option to purchase an additional 1.05 million shares at the initial public offering price to cover over-allotments, if any.
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 ended 31 March, compared to $45.5m for the same year-ago period. The company posted a gross profit of $18.5m for the quarter ended 31 March, an increase from $10.8m for the previous year period. Net income in that quarter was $1.6m, compared to $537,000 for the year-ago period.
In the most recent quarter, ending 29 June, the company posted net revenue of $69m, with gross profit of $19.1m, and income from operations at $3.3m. The company did not give results for the comparable quarter in 2002.
Netgear noted, however, that the numbers were unaudited results which may fluctuate once the figures are finalised.
This is Netgear's second try at an IPO. The company initially filed to go public back in the fall of 2000, but postponed the offering due to market conditions.
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