Optical/IP Networks

Chorum Pulls IPO

Chorum Technologies Inc. announced that its withdrawing its bid for an initial public offering (see Chorum Withdraws IPO).

The subsystems and components maker filed for its IPO on Halloween day last year and, in December, the company set its price terms at $16 to $18 on 8 million shares. The offering could have raised $136 million for Chorum. The firm's lead banker on the offering was Credit Suisse First Boston.

Chorum, of course, isn't alone here (see IPO Window Shuts Tighter). On Monday, Lucent-backed WaveSplitter Technologies Inc. withdrew its IPO bid, citing market conditions. The offering could have raised up to $110 million for the optical component maker. WaveSplitter’s decision comes one working day after OMM Inc. withdrew its filing. OMM’s planned offering could have raised $99 million (see Tough Seas for New IPOs, OMM, and Wavesplitter Files for $155 Million IPO).

Chorum recognized revenues of $6.1 million for the three months ending December 31, 2000, and all of that revenue came from shipments of its optical filters to Nortel Networks Corp. (NYSE/Toronto: NT). In the prior quarter, Chorum recognized $3 million in revenues from the same business.

On Wednesday Chorum announced two new products that are designed to improve the performance of DWDM (dense wavelength-division multiplexing) systems (see Chorum Announces Two Products).

-- Phil Harvey, senior editor, Light Reading http://www.lightreading.com

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