Airvana Plots $83M IPO
In documents filed with the Securities and Exchange Commission (SEC) this week, the Chelmsford, Mass.-based startup says it will sell 8.3 million shares of common stock priced between $8 and $10. The float is being underwritten by Deutsche Bank AG , Lehman Brothers , Morgan Stanley , and UBS Investment Bank . Airvana plans to trade under the ticker symbol “AIRV” on Nasdaq .
Airvana mainly sells EV-DO network equipment through an OEM partnership with Nortel Networks Ltd. , although it also has deals with Alcatel-Lucent (NYSE: ALU) and Qualcomm Inc. (Nasdaq: QCOM) "Through Nortel Networks, we have sold EV-DO product licenses for use by over 30 operators worldwide, including Alltel, Bell Mobility, Sprint Nextel, Telefonica, Telus and Verizon Wireless," the company notes in its latest S-1 papers. (See Airvana: The Quiet Startup.)
The company also wants to get into the fixed/mobile convergence home base station market with products that can support WiFi and UMTS, as well as CDMA cellular networking. To this end, the company bought U.K.-based 3Way Networks in April this year. (See Airvana Acquires 3Way.)
Like many of the other wireless companies that have gone public recently, however, Airvana has not been turning a profit. In the first quarter of fiscal 2007, which ended April 1, the company reported an operating loss of $21.5 million on revenue of $0.3 million.
By contrast, revenue for all of fiscal 2006 was $170.3 million and the firm made an operating income of $57.1 million.
Early in 2006, however, Airvana stated that it had made over $100 million in 2005 and claimed eight consecutive profitable quarters. (See Airvana Exceeds $100M.)
Wireless IPOs have been a mixed bag during the course of this year. The well-fancied Clearwire LLC (Nasdaq: CLWR) float soon lost its luster, but WiFi company Aruba Networks Inc. (Nasdaq: ARUN) was buoyed by its IPO. (See Clearwire: The Big Spend and Aruba's IPO Fillip.)
— Dan Jones, Site Editor, Unstrung