SANTA BARBARA, Calif. – Somera Communications Inc., a telecommunications equipment company, went public November 12, offering 8.5 million shares at $12 apiece. The company’s stock priced in the middle of its $11 to $13 filing range.
Lehman Brother Holdings Inc., Dain Rauscher Wessels and Thomas Weisel Partners L.L.C. underwrote the initial public offering, which left 46.5 million shares outstanding.
Summit Partners L.L.C. was a venture backer. There were no selling shareholders.
Somera Communications is a distributor of new and refurbished landline and wireless telecommunications equipment. The company sells about 6,000 different products, including microwave, switching, transmission, access and wireless equipment from 250 manufacturers. Somera Communications also provides its clients with services such as asset recovery, inventory management and technical support.
The $93.6 million in proceeds expected from the IPO will be used to repay debt and for general corporate purposes, including capital expenditures and working capital.
Somera Communications has always been profitable, earning $9.7 million in 1997 and $19.2 million in 1998.
Walter Kortschak, a managing partner at Summit, along with Peter Chung, a general partner at Summit, joined the company’s board of directors in July 1998.
Somera Communications – Selected Financial
(in thousands, except per share data)
Year Ended Six Months Ended Nine Months Ended
December 31 June 30 September 30
1996 1997 1998 1998* 1999 1998* 1999*
Total revenue 10,149 34,603 72,186 34,417 52,834 51,271 87,034
Net income 3,123 9,693 19,181 9,585 11,090 13,447 16,725
Net income per share 0.08 0.25 0.5 0.25 0.29 0.35 0.44