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Cortina Preps an IPO

After 10 years and at least US$194 million in funding raised, chip maker Cortina Systems Inc. is ready to go public. The company filed with the Securities and Exchange Commission (SEC) on Wednesday.

It's a preliminary S-1, so we don't yet know how big an offering Cortina would float. The proposed maximum offering price is $100 million.

Cortina, which sells chips for optical networking and Passive Optical Network (PON)s, has always been unprofitable since its 2001 founding, although it claims non-GAAP profitability for 2008 through 2010.

Table 1: Cortina's Numbers ($M)
2006 2007 2008 2009 2010
Revenue
41.6
142.2
152.1
127.5
141.1
Net Income (Loss), GAAP
(12.2)
(6.9)
(4.5)
(21.3)
(10.7)
Net Income (Loss), non-GAAP
n/a*
n/a*
17.5
0.35
10.9
Source: Cortina S-1 filing.
* Not listed on the S-1.




Canaan Partners , DCM - Doll Capital Management , El Dorado Ventures , Institutional Venture Partners , Kodiak Venture Partners and Morgenthaler all stand to make some money off the IPO, as does Cortina's largest shareholder, Intel Corp. (Nasdaq: INTC), which has about a 12 percent stake.

Why this matters
What Cortina has in common with NeoPhotonics is that both have been around seemingly forever and finally have the chance to go public. It's a combination of being well established in the market and finding a period with high enough interest in tech IPOs.

With regard to the latter point, investors seem eager to find a way into optical networking, as analyst Andrew Schmitt of Infonetics Research Inc. has been saying for quite a while.

For more
Here's a Cortina timeline, in reverse chronological order, including our 2007 conviction that the company was an IPO possibility.

— Craig Matsumoto, West Coast Editor, Light Reading

Pete Baldwin 12/5/2012 | 5:10:07 PM
re: Cortina Preps an IPO

So, who's next?


There certainly seems to be a window here for all these companies we've been following forever to go public (Inphi, NeoPhotonics, Cortina) or strike some other sort of deal (Hatteras/Overture). 


Who else? ANDA we've written about. Actelis comes to mind.


Plenty of names on the optical side. Santur especially (they'd strived for an IPO a few years ago).

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