Optical/IP Networks

Tellium IPO Set for Next Week

Tellium Inc.'s IPO has been set for next week.

Lead bankers Morgan Stanley Dean Witter & Co. and Thomas Weisel Partners now expect to price the company's shares during the week of May 14th, aiming to sell 7.5 million shares at between $13 and $15 apiece, which would raise between $97.5 million and $112.5 million for the company (see Tellium Hits the Road )

Tellium, which makes core optical switches, competes against companies like Ciena Corp. (Nasdaq: CIEN), Corvis Corp. (Nasdaq: CORV), Nortel Networks Corp. (NYSE/Toronto: NT), and Sycamore Networks Inc. (Nasdaq: SCMR).

In its most recent filing Tellium said Dynegy Inc. (NYSE: DYN) accounted for approximately 70 percent of its revenues for the three months ended March 31, 2001, and Qwest Communications International Corp. (NYSE: Q) accounted for about 30 percent of its revenues for the same period. Cable and Wireless (NYSE: CWP) is also counted as a customer, but Tellium hasn’t counted any revenue from the contract yet, according to the filing dated April 27.

Tellium would be the first major optical networking startup to attempt an IPO in 2001. The only networking equipment and component companies that have tested the IPO waters this year were spinoffs, rather than true startups. These include Agere Systems (NYSE: AGR), Lucent Technologies Inc.’s (NYSE: LU) component spinoff, which was pushed out into the public market at the end of March at a reduced price of $6 a share (see Agere's Fistful of Dollars). While the stock is still in the single digits, it is climbing from its debut price, trading at $7.56 a share today. Riverstone Networks (Nasdaq: RSTN), which was the first networking company to IPO this year, was priced at $12 a share when it went out in February (see Riverstone IPO Toughs It Out). The stock is now up to $18.50 a share in midday trading today.

-- Marguerite Reardon, Senior Editor, Light Reading

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opticalwatcher 12/4/2012 | 8:27:29 PM
re: Tellium IPO Set for Next Week Its hard to believe that Tellium is actually going out into this shark-infested waters we're currently wading in. I sure hope that Tellium has more customers in the wings, otherwise, it'll be basement city within 6 months. All those poor employees missed this boat by about 18 months. What a shame. Oh well, GOOD LUCK!
OpticalValueLine 12/4/2012 | 8:27:28 PM
re: Tellium IPO Set for Next Week You are brave. Every eys is on you. I sincerely wish Tellium has a great IPO.
big_cecil 12/4/2012 | 8:27:27 PM
re: Tellium IPO Set for Next Week They obviously had no choice,
with 500 employees no company would buy this POS.

After reverse split and halving the offering most
employees are feeling violated already !!!

Let's hope for a pop at IPO so we can short this
sh!t into extinction. All the elitist
[email protected]@holes can do the following calculation:

N shares x 0 = 0

By the time they can exercise that's about what it will be worth.

photncowby 12/4/2012 | 8:27:18 PM
re: Tellium IPO Set for Next Week Your observations exude a deep technological knowledge which lies beyond the grasp of the finest technocrat. Yes, even your level of technojargon leaves the common layman well behind. Certainly, I will take your comments directly to the bank. Please continue to share your uncommon knowledge with your peers - surely, we all benefit by recognizing your position on a matter which to some may seem fairly complex but to you, well, as simple as the difference between a photon and an electron.

I do detect that your comments are seem steeped in bitter revulsion - what makes you so angry? The answer to this tells the true tale behind your comments.

optiboom 12/4/2012 | 8:27:18 PM
re: Tellium IPO Set for Next Week Hey Big_c,

Sounds like sour grapes!! Did they pass you over or bounce you?!?

Real business = real $$ = excellent stock price

This ain't a SCMR, it's been brought along slowly to be successful for the long haul.

gea 12/4/2012 | 8:27:16 PM
re: Tellium IPO Set for Next Week They're going to be around for a while. Even if their IPO is flat, they've got the right personnel, and the right ideas (they were a big force in developing the UNI at OIF).So eventually, their stock will have its day in the sun.
y2k 12/4/2012 | 8:27:16 PM
re: Tellium IPO Set for Next Week We could all use some luck. Now is time to piss outside instead of inside the tent.

Good article on Tellium....


One more time, "All-for-One, One-for-All," let's all focus and give Tellium a nice launch. Thanks everyone.

lighthearted 12/4/2012 | 8:27:15 PM
re: Tellium IPO Set for Next Week and that day will likely be when the sun consumes the earth. well, perhaps you are the longest of long-term investors. unless we revisit the absurd multiples of 1999, tellium will never deliver a solid return. if they were bringing truly disruptive technology into the market, fine, but their customer concentration issues (read Corvis) seem to answer that question.
tycon03 12/4/2012 | 8:27:13 PM
re: Tellium IPO Set for Next Week Finally a Optical start-up with customers and product. Product which has been sucessfully deployed. After a few more contract wins Tellium will be fine. I wouldn't invest my life savings in it, but if your a long this is a solid pick. Harry Carr is a exceptional leader and while some of his business practices may be suspect, no one can question his direction or leadership skills. Tellium has a great switch, great people working for them, and focused leadership. I think they will be sucessful, even in the unstable market conditions we currently have. 60 maybe not, 20-30 very attainable. Good luck, Tellium.
tycon03 12/4/2012 | 8:27:06 PM
re: Tellium IPO Set for Next Week Hey lite boy, see Yurie Systems-Harry pocketed around 50 million from that company, he doesn't know what he's doing? Huh??
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