Airvana Plots $83M IPO

CDMA infrastructure maven Airvana Inc. could raise up to $83 million in its IPO, based on the price range it's revealed.

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

mtauschek 12/5/2012 | 3:05:45 PM
re: Airvana Plots $83M IPO I saw $830M and thought...WTF, no way. If you do the math, it is of course $83M, and there's no way they'll get that. Look out below, I think this is going to be a bomb!
NortheastSE 12/5/2012 | 3:05:45 PM
re: Airvana Plots $83M IPO Let me see, Airvana has one customer who accounted for 100% of sales (and who happens to be the company's only real customer) and they posted an $18.8M loss on sales of $269K. But we're told their strategy going forward is to get into Fixed Mobile Convergence market, which has zero revenue to date, except in T-Mobile's GSM-UMA service.

Yeah, where can I get me some of those shares???
spc_rayella 12/5/2012 | 3:05:12 PM
re: Airvana Plots $83M IPO Range was $8-10 but stock is now priced at $7.

Does that something about:

a) Airvana?
b) the CDMA equipment market?
c) Airvana's financial advisors?

or maybe all three...
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