Multilink Debuts, Quietly

Multilink Technology Corp., a component company, sold its shares publicly for the first time today, less than a week after telecom giants Nortel Networks Corp. (NYSE/Toronto: NT), JDS Uniphase Inc. (Nasdaq: JDSU; Toronto: JDU), and Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) pre-announced negative news that had the entire market reeling.

A year ago, Multilink might have seen first-day gains in triple-digit percentages, but today, with the optical market hungover from the lingering aftertaste of the negative announcements, the company did well to end the day up 2.19 (24%) at 11.19 a share from an opening price of $9 a share.

All told the company raised $89.5 million, a little more than half the $150 million it originally expected to raise when it filed for its IPO back in October, according to its S-1 filed with the Securities and Exchange Commission.

The company, which designs and sells optical components, like integrated circuits and modules for next-generation networking systems, has three main customers: Alcatel SA (NYSE: ALA; Paris: CGEP:PA), Cisco Systems Inc. (Nasdaq: CSCO), and TyCom Ltd. (NYSE: TCM; BSX: TCM) together accounted for about 73 percent of last year's revenue.

For all of 2000, the company brought in about $72.7 million, with a net loss of $3.6 million. And in the three months ending March 31, the company’s S-1 states, it had $31.0 million in revenue and a $4.5 million net loss.

While it’s encouraging that the company ended its first day on a positive note, it still has a long road ahead. Lucent spinoff, Agere Systems (NYSE: AGR), another component company, went public back in March. Since that time, the company’s stock has dropped about 16 percent below its IPO price of $6.00, ending today at $5.10.

- Marguerite Reardon, Senior Editor, Light Reading

dsach1w 12/4/2012 | 8:12:07 PM
re: Multilink Debuts, Quietly Multilink had revenues of $72.7 million for the year ending December 31, 2000, with a net loss of $10.0 million. Revenues in 1999 were $20.4 million. For the quarter ended March 31, 2001, revenues were $31.1 million, with a net loss of $4.3 million. These are in the S1. What were you looking at?
jgarten 12/4/2012 | 8:12:02 PM
re: Multilink Debuts, Quietly LightReading...looks like the numbers you quote in the article are way off. Please correct as this does not reflect reality and the success of the company. You shouldn't get numbers like this wrong if you want to remain a trustworthy source.
Marguerite Reardon 12/4/2012 | 8:11:59 PM
re: Multilink Debuts, Quietly Apologies. The numbers are fixed. It was a case of misplaced decimal points.
dsach1w 12/4/2012 | 8:11:53 PM
re: Multilink Debuts, Quietly Thanks for the reply and the update. I figured it was a simple mistake, so thanks for the quick fix.
PhotonGolf 12/4/2012 | 8:09:50 PM
re: Multilink Debuts, Quietly
How do they expect to maintain their numbers in Q3 and Q4?? It looks like all three previous periods (Q1, FY00, FY99) relied on just three customers (albeit rotating around) for ~75% of their revenue. And Alcatel and Ciena have been the best through this correction.

Maybe they know something everyone else doesn't. I hope so, because if I had to make a wager, I'd say Q3 and Q4 will grow y/y, but will be tough to grow sequentially. And the market won't like that. Did they need the money?

I'd love to be wrong -

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