CHELMSFORD, Mass. – Sycamore Networks Inc., an optical networking products manufacturer, went public October 22, offering 7.5 million shares at $38 apiece, above its $35 to $37 filing range.
Morgan Stanley Dean Witter & Co. Lehman Brothers, J.P. Morgan & Co. and Dain Rauscher Wessels underwote the initial public offering, which left 77.1 million shares oustanding.
Matrix Partners was a venture backer. There were no selling shareholders.
The company markets optical networking products that allow network service providers to upgrade their existing fiber-optic networks to offer more bandwidth. Sycamore also designs add/drop nodes, optical switches, and network management software.
The company expects the $263 million in proceeds from the IPO to be used for general corporate purposes, including working capital and capital expenditures, and to repay debt.
Sycamore has never been profitable, losing $19.5 million in the year ended July 31.
Timothy Barrows and Paul Ferri, partners at Matrix, joined the company’s board of directors in February 1998.
Sycamore Networks – Selected Financial
(in thousands, except per share data)
February 17, 1998 (inception) Year Ended
to July 31, 1998 July 31, 1999
Total revenue 11,330
Net loss -693 -19,490