SAN JOSE, Calif. – Netro Corp., a provider of wireless networking equipment, went public August 19, offering 5 million shares at $8 apiece. The company’s stock priced in the middle of its $7 to $9 filing range.
Underwritten by Merrill Lynch & Co., BancBoston Robertson Stephens and Dain Rauscher Wessels, the initial public offering left 43.9 million shares of stock outstanding.
Venture backers included Venture Fund I, U.S. Venture Partners, Brentwood Venture Capital and VR Telecommunications GmbH & Co. There were no selling shareholders.
Netro supplies wireless networking equipment to telecommunications service providers who provide businesses with high-speed telecommunications connections. The company’s wireless system, AirStar, provides telecommunications services to multiple points, allowing the service provider to connect many of its customers using a single radio.
Netro will use the estimated $36.2 million in proceeds from the offering for general corporate purposes, research and development, working capital and expansion of its sales and marketing units.
The company has never been profitable, losing $24.5 million in 1997 and $28.8 million in 1998.
Irwin Federman, a general partner of U.S. Venture Partners, joined the board of directors in June 1995. John Walecka, a general partner at Brentwood, followed in November 1995.
Netro – Selected Financial
(in thousands, except per share data)
Period from November 14, 1994 (inception) Year Ended December 31 Six Months Ended June 30
to December 31, 1995 1996 1997 1998 1998 1999
Total revenue 731 5,601 5,438 3,273 5,338
Net loss -2,069 -12,173 -24,543 -28,828 -13,681 -14,289
Net loss per share -10.61 -4.66 -5.11 -4.07 -2.11 -1.72