PETALUMA -- Shares of telecommunications systems developer Calix Inc. this morning started trading on the New York Stock Exchange, raising $82.3 million at the initial price of $13 a share.
The original price for the stock, traded under the symbol CALX, was anticipated to be $11 to $13 a share, according to the company's latest version of the stock prospectus (link). Share prices ranged between $15 and $16.50 throughout today's session, with a closing price of $15.10 a share, a 16 percent increase from the initial price.
As of the end of last year, the company said it had shipped more than 6 million "ports" worth of its "Unified Access Infrastructure" products to more than 500 North American and international companies serving more than 32 million subscriber lines. Calix claims to have 13 of the 20 largest U.S. incumbent local exchange carriers, or ILECs, as customers.
Company revenue was $232.9 million for 2009, up from $133.5 million for 2005, according to company filings. Yet accumulated deficit was $392.2 million at the close of 2009, resulting from net losses of $24.9 million, $12.9 million and $22.4 million for 2007, 2008 and 2009, respectively.
Underwritten by Goldman Sachs and Morgan Stanley, the IPO raised hopes among analysts and investor that public offerings on Wall Street are on an upswing.
Along with $100 million in new financing raised by the Petaluma maker of high-speed access systems for telecommunications and cable providers, the IPO will position the company to provide stimulus-funded upgrades for its customers, mostly independent and smaller telecommunications carriers.
"Of the 40 percent of rural telecom carriers that we serve, 70 percent already do business with the agencies that will be allocating the funds and have proven that they deliver on subsidies and grants. That gives them an added advantage," said company spokesman Geoff Burke several months ago.
Calix said in filings that it will use $25 million of the IPO net proceeds for R&D sales and marketing and general administrative costs. Another $7 million will go toward capital expenditures.
The 300-employee company is in a quiet period for 40 days following the IPO.