SAN JOSE, Calif. – Brocade Communications Systems Inc., a company that develops and markets switches that allow simultaneous communication between computers and storage devices, went public May 24. The company offered 3.2 million shares at $19 apiece, above the $15 to $17 filing range.
Morgan Stanley Dean Witter, BT Alex. Brown and Dain Rauscher Wessels underwrote the offering, worth an estimated $61.7 million. There were no selling shareholders.
Crosspoint Venture Partners, Mohr, Davidow Ventures and Weiss, Peck & Greer Venture Partners were venture backers.
Brocade, founded in August 1995, is a provider of management switches for large amounts of data transferred between storage units and computer systems. The company had acquired $31.5 million in debt as of April 30.
Proceeds from the offering will be used to repay debt and for general corporate purposes.
The company has never paid cash dividends on capital stock.
Seth Neiman, partner of Crosspoint, joined the company’s board of directors in August 1995, followed by Bay General Partner Neal Dempsey in December 1996.
Brocade Communications Systems – Selected Financial
(in thousands, except per share data )
Year Ended October 31, Six Months Ended April 30 (unaudited),
1995 1996 1997 1998 1998 1999
Total revenue 8,482 24,246 14,270 18,547
Net loss -176 -3,818 -9,442 -15,231 -3,870 -2,687
Net loss per share* -0.84 -0.14