SANTA CLARA, Calif. – Virata Corp., a communication processor chip company, went public November 17, offering 5 million shares at $14 apiece. The company’s stock priced above its $11 to $13 filing range.
Credit Suisse First Boston, Warburg Dillon Read L.L.C. and Thomas Weisel Partners L.L.C. underwrote the initial public offering, which left 19.4 million shares outstanding.
Oak Investment Partners, Oracle Corp., Gaz et Eaux, Olivetti Telemedia Investments B.V., 3i Group plc and New Enterprise Associates were venture backers. There were no selling shareholders.
The company’s communications processor chips are used in digital subscriber line equipment, which enables phone companies to offer high-speed networking over copper phone lines. Virata’s ATOM family of application-specific standard products and its Proton line of application-specific integrated circuits are used in such networking devices as PC and cable modems, gateways and routers.
The company will use the $63.9 million in proceeds expected from the IPO for working capital and for general corporate purposes, including research and development and marketing expenses.
Virata has never been profitable, losing $10.3 million in 1998 and $17.2 million in 1999.
Bandel Carano, a general partner at Oak, and Peter Morris, a general partner at New Enterprise, are on the company’s board of directors.
Virata – Selected Financial
(in thousands, except per share data)
Year Ended March 31 Six Months Ended Six Months Ended
1997 1998 1999 September 30, 1998 October 3, 1999
Total revenue 6,953 8,931 9,256 5,121 5,677
Net loss -8,540 -10,278 -17,157 -11,695 -7,572
Net loss per share -0.8 -0.9 -1.33 -0.91 -0.57