PALO ALTO, Calif. – Copper Mountain Networks Inc., a developer of products for the communications industry, went public May 12, offering 4 million shares of common stock. The stock priced at $21, well above the $16 to $18 filing range.
Greylock Management Corp., Sutter Hill Ventures, Matrix Partners, InterWest Partners, Canaan Partners, Technology Crossover Ventures and Intel Corp. were venture backers. There were no selling shareholders.
Morgan Stanley Dean Witter, BancBoston Robertson Stephens and Dain Rauscher Wessels underwrote the offering, which left 22.3 million shares outstanding.
Copper Mountain, incorporated in California in 1996 and reincorporated this year in Delaware, develops digital subscriber line communications products, which are marketed to telecommunication service providers. The products allow the use of existing copper phone lines for the delivery of data services to customers.
Proceeds, worth an estimated $84 million, will be used for general corporate purposes. The company, which acquired losses of $24.6 million since inception, has never paid or declared any cash dividends.
Tench Coxe, managing director at Sutter Hill, and Rogers Evans, general partner at Greylock, joined the company’s board of directors in March 1996, followed by Richard Kimball, general partner at Technology Crossover. Andrew Verhalen, a partner at Matrix Partners, became a director in February.
Copper Mountain Networks – Selected Financial
(in thousands, except per share data )
March 11, 1996 (Inception) Year Ended December 31, Three Months Ended March 31,
through December 31, 1996 1997 1998 1998 1999
Net revenue 211 21,821 317 13,217
Net loss -2,181 -11,187 -10,524 -3,287 -1,135
Net loss per share* -0.62 -0.06