& cplSiteName &

Summer: Cloudy With a Chance of Tech IPOs

Dan Jones
6/3/2014
50%
50%

The next couple of months should help establish if the initial public offering market has recovered after a somewhat rocky and unpredictable first six months of the year.

Several crucial expected IPOs should help serve as a barometer for the tech market. Here's Light Reading's rundown of what's to come, what's happened so far in 2014, and what may happen in the tech IPO sector.

Planned IPOs
Arista Networks: The Santa Clara, Calif., Gigabit Ethernet switch and data center software maker is due to complete its initial offering on the New York Stock Exchange on July 6. A recent research report from the analysts at MKM Partners suggests that Arista Networks Inc. will go for a price ranging from $36 to $40 a share.

    We believe the mid-point of the pricing range implies a $2.99bn market cap and $2.74bn enterprise value. The mid-point represents 3.7x EV to our 2015 sales estimate of $733mn and 28x our 2015 non-GAAP EPS estimate of $1.35.

Arista is already a significant player in the Gigabit Ethernet market with a 6% market share, making it No. 2 behind Cisco Systems Inc. (Nasdaq: CSCO), MKM Partners says. The analysts are also expecting Google (Nasdaq: GOOG) to become a significant customer for its cloud networking data center software through 2015.

One possible downside for the company's IPO at the moment is that Microsoft is a major customer, accounting for 22% of all revenue in 2013. Another potential issue is that the company could face a legal challenge from another startup linked to an ex-board member and founder of Arista. (See Arista Faces Legal Challenge as It Files for $200M IPO .)

Box: The Silicon Valley cloud storage company initially filed for a $250 million IPO on March 24. It has delayed the offering but is still expected to try and go public this summer.

Com Hem: The Swedish cable operator announced plans to raise 5.5 billion kronor ($829 million) from an IPO on the Stockholm exchange late in May. (See Com Hem Preps $829M IPO.)

Good Technology: The Sunnyvale, Calif., enterprise mobility management company revealed in May that it has filed for a $100 million IPO. Formed in 1996, Good Technology Inc. posted a net loss of $118.4 million on $160.4 million in revenue in 2013, compared to a net loss of $90.4 million on $116.6 million in revenue in 2012. (See Moto Offloads Good Technology.)

Goodman Networks: The Plano, Texas, network infrastructure services company Goodman Networks Inc. filed plans for an IPO back in April. The company is reportedly hoping to raise up to $100 million through a Nasdaq offering.

MobileIron: The Mountain View, Calif., mobile device security management company is planning a 15% float of its stock on the Nasdaq this month.

At the end of May, MobileIron filed documents listing an expected price range of $8-$10 for the 11.1 million shares to be offered. If an overallotment option of 1.67 million shares is sold when the company goes public, that could take the value of the IPO to nearly $128 million. (See Mobile Gets $825.1M in New Investment in May and MobileIron Goes Flat Out for IPO.)

Recent IPOs

  • The California networking security company A10 Networks Inc. raised $187.5 million in an IPO in March. (See A10 IPO Sputters Off the Ground and A10 Networks Reports Revenues Leap in Q1 .)
  • The French cable and telecom services holding company Altice raised $1.7 billion going public on the Euronext Amsterdam exchange at the end of January. (See Euronews: TV Sport Boosts BT's Q3.)
  • The UK fiber optic provider CityFibre Holdings Plc made $16.5 million on an IPO in January. (See CityFibre Raises £16.5M From IPO.)
  • The local UK operator Manx Telecom Ltd. went public on the AIM small-cap market in February, raising 156.3 million pounds ($254.3 million) from its initial offering. (See Euronews: 21 Géant Leaps for Mankind?)
  • The South Korean opto-electronic transceiver firm OE Solutions raised $7.7 million in an IPO in early March. (See OE Solutions Raises $7.7M in IPO.)
  • The customer service software company Zendesk had a $100 million IPO in mid-May. The San Francisco company's shares rose nearly 50% in the first day of trading.
  • Possible IPOs

  • The LTE chip company Altair Semiconductor is considering an IPO in 2015. (See Does M2M Need LTE?)
  • Apigee Corp. , a large independent analytics player, is a likely candidate for a future IPO since closing another $60 million in venture capital funding in April. The company confirmed to Light Reading this week that it is on track for an IPO. (See Apigee Banks $60M for APIs, Analytics.)
  • There have been persistent rumors that the data transport infrastructure vendor BTI Systems Inc. could file for an IPO. New CEO Colin Doherty didn't rule out the possibility in April, but he appeared to suggest that a float isn't a top priority for the company. (See Is BTI Heading for an IPO? and New BTI CEO's Mandate: 'Scale the Business'.)
  • The Irish operator eir is reported to be looking into an IPO. (See Eurobites: Sawiris Eyes Telecom Italia Investment.)
  • There is frequent speculation that the streaming mobile music startup Spotify will file for an IPO this year. (See IPO Playlist.)
  • In November, The Wall Street Journal reported that the mobile credit card reader startup Square Inc. could consider an IPO in 2014.
  • The San Francisco mobile messaging startup Twilio Inc. (NYSE: TWLO) has said that it is working toward an IPO after it appointed former Amazon CIO Richard Dalzell to the board in May. Twilio was one of the best-funded startups of 2013, with more than $100 million of VC money raised. (See The Best-Funded Mobile Startups of 2013.)
  • — Dan Jones, Mobile Editor, Light Reading

    (2)  | 
    Comment  | 
    Print  | 
    Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    DanJones
    50%
    50%
    DanJones,
    User Rank: Blogger
    6/3/2014 | 1:22:37 PM
    Re: IPOs Might Be a Little Late
    Could be!

     

    But the ZenDesk IPO might show something a little different, no?
    Phil_Britt
    50%
    50%
    Phil_Britt,
    User Rank: Light Sabre
    6/3/2014 | 8:47:22 AM
    IPOs Might Be a Little Late
    It looks like the best window for IPOs has already passed for 2014. The high premiums that many of the IPOs commanded earlier in the year have passed, with recent IPOs having a hard time getting much, if any of a first-day pop.

    If one or two of the planned IPOs you mentioned fails to get good pricing and then gain on it, or if some of the recent IPOs like Twitter start faltering badly like Facebook did months after its IPO, other planned ones could well be delayed until conditions improve.
    From The Founder
    Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    LRTV Custom TV
    The Urgency of Commercial 5G Services

    4|26|17   |     |   (0) comments


    The progress of 5G has been closely monitored in the industry. At the 2017 Brooklyn 5G Summit, the sense of urgency for a commercial 5G launch had started to surface among operators.
    Women in Comms Introduction Videos
    How Diversity Helps Comcast Mirror Its Customer Base

    4|26|17   |   2:55   |   (0) comments


    Diversity brings innovation, creative ideas and a way to reflect the broad spectrum of your customer base, Comcast Director of Customer Experience Jenelle Champlin says.
    LRTV Huawei Video Resource Center
    Mobile Operators & Video

    4|25|17   |     |   (0) comments


    Ovum's Ed Barton discusses the latest mobile operator strategies for mobile video.
    LRTV Custom TV
    Infinera Introduces Instant Network

    4|20|17   |     |   (1) comment


    Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
    Women in Comms Introduction Videos
    Vodafone's Eubank on Sponsors, Mentors & Moving On Up

    4|19|17   |   4:25   |   (0) comments


    Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
    LRTV Custom TV
    NYC Auto Show: Are We Smart Yet?

    4|18|17   |     |   (0) comments


    The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
    LRTV Huawei Video Resource Center
    The Impact of Video

    4|18|17   |     |   (0) comments


    David Mercer from Strategy Analytics discusses the impact of video on current strategies.
    LRTV Custom TV
    Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

    4|13|17   |     |   (0) comments


    In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
    Women in Comms Introduction Videos
    Tech Maverick Shares Her Tips for Gender Inclusivity

    4|12|17   |   7:28   |   (0) comments


    Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
    LRTV Huawei Video Resource Center
    Huawei at MWC 2017

    4|11|17   |     |   (0) comments


    At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
    LRTV Custom TV
    China Telecom NFV Infrastructure on RSD

    4|6|17   |     |   (0) comments


    Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom, for a discussion of what NFV brings.
    LRTV Custom TV
    Nokia's IMPACT Software Demo

    4|6|17   |     |   (0) comments


    Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
    Upcoming Live Events
    May 15-17, 2017, Austin Convention Center, Austin, TX
    May 15, 2017, Brazos Hall - Austin, TX
    May 15, 2017, Austin Convention Center - Austin, TX
    June 6, 2017, The Joule Hotel, Dallas, TX
    All Upcoming Live Events
    Infographics
    With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
    Hot Topics
    Surprise! AT&T Markets 4G Advances as '5G Evolution'
    Dan Jones, Mobile Editor, 4/25/2017
    Did Verizon Outbid AT&T for Straight Path?
    Dan Jones, Mobile Editor, 4/25/2017
    First Year TIPs the Scale Toward Success
    Denise Culver, 4/24/2017
    Verizon: Small Biz in Cybercrooks' Crosshairs
    Carol Wilson, Editor-at-large, 4/27/2017
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
    TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
    Live Digital Audio

    Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.