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IPOs

Ruckus Guns for an IPO

Wi-Fi offload vendor Ruckus Wireless Inc. is preparing for an initial public offering (IPO), having just raised US$21.7 million in funding and added two new members to its board.

The $21.7 million comes from a mezzanine round of funding that David Callisch, Ruckus' VP of corporate marketing, says the company wanted to raise before it began working toward filing. Ruckus has been profitable for the past six quarters, and the company earned $120 million in its last fiscal year and about half that the year before, a source close to the company says.

"We don’t need the money but wanted it to enter into the service provider market," he says, adding that a lot of the vendor's resources still go into its traditional customer base, the enterprise.

Ruckus also confirmed Tuesday it has added two new members to its board: former Verizon Communications Inc. (NYSE: VZ) CTO Dick Lynch and George Atoun, formerly of Ericsson AB (Nasdaq: ERIC). The company currently has 450 employees worldwide.

Why this matters
Wi-Fi offload is of utmost importance to the wireless operators now as they look to relieve congestion on their wireless networks. Fairly new to the service provider scene, Ruckus has scored some high-profile wireless operator customers, including a massive deployment KDDI Corp. in Japan. (See Ruckus Makes Over KDDI With Wi-Fi Offload.)

Ruckus does, however, face stiff competition for service provider attention from the likes of Cisco Systems Inc. (Nasdaq: CSCO), BelAir Networks Inc. , Wavion Inc. and others. Ruckus is planning to announce news at this month's Mobile World Congress, but it will be far from the only Wi-Fi vendor making waves. Rumors suggest Ericsson may be ready to announce an acquisition of BelAir at the Wi-Fi-centric show as well. (See MWC = Mobile Wi-Fi Congress and Ericsson Sizing Up BelAir Buy for Wi-Fi Push.)

For more
Read up on Ruckus's road to IPO below, and check our MWC site for all the latest Wi-Fi and MWC news.



— Sarah Reedy, Senior Reporter, Light Reading Mobile

DCITDave 12/5/2012 | 5:42:36 PM
re: Ruckus Guns for an IPO

http://www.usatoday.com/tech/n...


They've been talking IPO on and off for a while. But given that they're a private company that wants to be a major supplier to service providers, that makes sense because they'll need to get bigger at some point.

mobileinsider 12/5/2012 | 5:42:36 PM
re: Ruckus Guns for an IPO

Sarah: looks like they are making great progress. Didn't they tell Wall Street that they would file in 2010?  Then, they retracted and said 2011. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ac3qT6KoLs_Y If they are profitable and do not need funds, then why the Series G? Here we are and now they are saying 2013?  Regardless, $210m for 2011 is impressive. The 1K filing will have show historical data and breakout by market segment. MI

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