Efficient Networks –

DALLAS – Efficient Networks Inc., a provider of digital subscriber line equipment, went public July 14. The company offered 4 million shares of common stock at $15 apiece, the top of its proposed offering range of $13 to $15 per share.

Credit Suisse First Boston, BancBoston Robertson Stephens and Volpe Brown Whelan & Co. underwrote the offering, which left 36.14 million shares outstanding. Proceeds from the issue will be used to expand marketing operations and provide working capital.

Venture investors included Crosspoint Venture Partners, Texas Instruments Inc., El Dorado Ventures, Enterprise Partners, Siemens AG, ADC Telecommunications, Palomar Ventures and Menlo Ventures. There were no selling shareholders.

Efficient Networks deploys, installs and maintains digital subscriber line (DSL) technology for its customers, allowing them to provide broadband access via existing copper telephone wire-based networks. The company is considered the fifth largest DSL equipment provider in the world. Customers include Lucent Technologies, Covad Communications and Hong Kong Telecom.

James Gauer, a general partner of Palomar Ventures, has served on Efficient Networks’ board since July 1993. Robert Hoff, general partner of Crosspoint Venture Partners, and Thomas Peterson, general partner of El Dorado Ventures, also joined the board in July 1993. William Martin, the senior vice president of ADC Telecommunications, joined the company’s board in January 1997. Anthony Maher, a director at Siemens AG, joined Efficient’s board in April.

Efficient Networks – Selected Financial

(in thousands, except per share data)

Year Ended December 31, Nine Months Ended March 31,

1996 1997 1998 1998 1999

Total revenue 3,687 4,122 3,370 2,703 7,139

Net loss -5,844 -6,635 -9,921 -5,792 -14,075

Net loss per share -2.06 -2.19 -2.86 -1.81 -3.77