SUNNYVALE, Calif. – Redback Networks Inc., a company that develops and markets software, hardware and support services for Internet providers, went public May 17. The company offered 2.5 million shares of common stock at $23 apiece, above the $18 to $20 filing range.
Morgan Stanley Dean Witter, BancBoston Robertson Stephens and Dain Rauscher Wessels underwrote the offering, worth an estimated $57.5 million.
Sequoia Capital, Accel Partners and Mayfield Fund were venture investors. There were no selling shareholders.
Redback Networks, founded in August 1996, is a provider of networking systems that manage online service subscribers; its products allow for flexibility in connections and support multiple access technologies. Customers include Verio Inc., BellSouth Corp. and @work.
Proceeds from the offering will be used for general corporate purposes. The company has never paid cash dividends on common stock.
Pierre Lamond, partner of Sequoia, joined the company’s board of directors in November 1996, followed by James Flach, partner of Accel, in January 1997.
Redback Networks – Selected Financial
(in thousands, except per share data )
Three Months Ended
March 31, 1998 June 30, 1998 September 30, 1988 December 31, 1998 March 31, 1999
Net revenue 478 1,294 2,933 4,501 6,517
Net loss 1,981 -2,173 -2,579 -3,143 -3,801
Net loss per share -0.18 -0.18 -0.19 -0.22 -0.26