Next Level Communications Inc. –

ROHNER PARK, Calif. – Broadband communications company Next Level Communications Inc. went public November 10, offering 8.5 million shares at $20 apiece. The company’s stock priced above its $17 to $19 filing range.

Merrill Lynch & Co., Credit Suisse First Boston, Lehman Brothers Holdings Inc., Warburg Dillon Read L.L.C. and Volpe Brown Whelan & Co. underwrote the intitial public offering, which left 78.5 million shares outstanding.

General Instrument Corp. and Spencer Trask Securities were venture backers. There were no selling shareholders.

The company offers broadband technology systems that speed up the transmission of voice, data and video over established copper phone lines. Its products range from high-bandwidth digital terminals to network units mounted on telephone poles and to access lines and PC adapter cards.

The $155.3 million in proceeds expected from the IPO will be used for general corporate purposes, including working capital. In addition, a portion of the proceeds will be used for research and development.

Next Level has never generated a profit, losing $66.4 million in 1997 and $81.7 million in 1998.

Richard Smith, an executive vice-president at General Instrument, joined the company’s board of directors in August 1999. Lynn Forester, a director at General Instrument, joined the company’s board of directors in November 1999, along with Paul Latchford, president at Spencer Trask.


Next Level Communications – Selected Financial

(in thousands, except per share data)

Nine Months Ended

Year Ended December 31 September 30

1996 1997 1998 1998 1999

Total revenue 8,311 43,830 21,208 32,430

Net loss 173,904 66,429 81,731 60,282 59,948