initial public offerings (IPOs) trading on American exchanges

Saturday, August 13, 2011

Bandwidth-Technology company CyOptics files for a $100 million IPO

CyOptics Inc. said Friday it planned to sell up to an estimated $100 million of common stock in an initial public offering.

The company makes optical technology to enhance high-speed network bandwidth. The company said it believes its products will help companies meet increasing demand for bandwidth-heavy services like streaming video and cloud-based computing, as well as the proliferation of mobile devices.

It sells its products to module manufacturers and original equipment manufacturers, who in turn sell to communication service providers and defense and avionics contractors. Among CyOptics customers are Finisar Corp. (FNSR) and Lockheed Martin Corp. (LMT).

In its filing with the Securities and Exchange Commission, CyOptics reported a recent trend of profitability. It swung to the black last year, and in the first quarter, earnings climbed 70% as revenue rose 44% to $34 million. Margin also improved in the first three months of the year, rising to 27.2% from 24.9%.

CyOptics didn't specify a planned use for the proceeds, other than to say they would go to working capital and general corporate purposes.

The filing comes at the end of a trying week for the IPO market. Of the at least 10 companies that entered this week aiming to launch, all but one-- Carbonite Inc. (CARB)--postponed their debuts because of wide swings in the market. A royalty trust for SandRidge Energy Inc. (SD) also priced an initial offering of units, though it reined in both the size and price from its previous estimates.

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