Virata Files to Raise $50 Million Through Initial
Washington, Sept. 8 (Bloomberg) --
Virata Corp., which supplies semiconductors and software
to makers of digital subscriber line equipment,
plans to raise as much as $50 million through an
initial stock sale.
The Santa Clara, California,
company, whose backers include Oracle Corp., filed with
the Securities and Exchange Commission to sell common
shares. The number of shares to be sold and their
estimated price range will be disclosed in a subsequent
Virata was incorporated in 1993 after
being part of Olivetti Research Laboratory, now AT&T
Corp. Laboratories, the company said. Virata initially
focused on developing systems for local area network
applications. The company now specializes in semiconductors and
software for broadband uses, the filing said. Customers
include Com21 Inc., Orckit Communications Ltd. and
Virata's components are used in
modems, gateways, routers and other types of digital
subscriber line, or DSL, equipment. DSL technology, used to
provide fast online speeds over traditional copper
telephone lines, has become popular as more people demand
high-speed Internet access. Virata hopes to capitalize on
One key to its business is that
DSL equipment makers typically must purchase
components from multiple vendors, test the parts, and
integrate those pieces themselves. Virata said it provides
semiconductors that are integrated with a comprehensive suite of
software, reducing the time and cost of designing DSL
``The combination of our communications
processors and software replaces numerous software elements
and semiconductors which would otherwise have to be
sourced from multiple vendors and then integrated and
tested,'' according to the filing.
Virata's net loss was $3 million in the three months ended
June 30, compared with a net loss of $943,000 in the
same period one year earlier. Revenue was $2.7 million
compared with revenue of $2.8 million in the three months
ended June 30, 1998.
Virata said it would use
proceeds from the stock sale for working capital and
general corporate purposes. Those purposes may include
research development and sales and marketing.
Charles Cotton is chief executive. He has worked as chief
executive of Shandwick Europe, a public relations
consulting firm; and as president of Thermal Scientific and
a director of its parent company, Thermal
Scientific Plc, which was acquired by TI Group Plc.
Hermann Hauser is chairman and a co-founder of Virata. He
is also a director of Amadeus Capital Partners Ltd.,
a venture capital fund management company.
Oracle holds a 13.4 percent stake in Virata before the
IPO. Olivetti Telemedia Investments BV holds a 9.8
percent stake. Gaz et Eaux SA, an investment company
controlled by partners in the Lazard investment banks, holds
a 12.7 percent stake.
An underwriting group
led by Credit Suisse First Boston will market shares
to the public. Virata will seek to trade on the
Nasdaq Stock Market under the symbol ``VRTA.''
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welcome to the roller coaster stock...we've seen
way down on no news, and we're seeing back up on no
news(i don't count that press release as anything
positive or negative...just a marketing dweeb with an itch
Fun, fun...let 'er ride.
100 share block go through, I'm going to lose it
:) It looks like there is an initial positive
reaction to the "news". I don't think the gains will hold
throughout the day though.
Hey TECH, nice to see you
I agree if we can get some momentum back we could
easily make to 50 by year end. I started buying this
stock down at 12 traded successfully up to last week I
sold out over 30, so I missed the last 7 points. This
is the only stock I have traded where I have been
able to buy it back lower then where I sold it and
trade it again it just takes sitting on your hands and
waiting for the right price. I am not a day trader, 80%
of my money dosen't turn over because I am in mostly
high cap tech and blue chip stocks, but NTPA has
proven to be one of the best trading stocks I have had
you can just look back at the trading ranges for the
last 7 months higher lows and higher highs. I
personally don't think we will see low 20's on this stock
but 24 to 26 for a short period would not be
unusually for stock that has had this move. Like I said I
looking to nibble at 28 and buy big at 26, I may be wrong
but with all the negativity in the market I thing you
will see profit taking lasting into the next few weeks
until earnings reports start to turn us around. Like I
said people tend to sell winners and hold losers in
hopes that it will come back and NTPA is a winner.
the news we've been looking for. What we are
looking for is a multi-million order from the RBOCs and
ISPs for Netopia's routers. Or some major partnership
with infrastructure companies. No? MISTAHCOUGHDROP.
We must be reading the same info, I actually
bought into NTAP today. I've been watching it for awhile
adn took advantage of today's pull back to get in.
I'm a little worried about NTPA as well, but I have
found that everytime I'm close to giving up on this
stock it picks up momentum and makes me glad I've
your situation. If you already own NTPA, why buy
more at these levels when there is just a good a
chance it will go down as it will up? If you don't
already own NTPA, then you may want to buy now in case it
has already hit bottom. Even if it goes down a few
more points, you'll be fine as long as you didn't
margin yourself out and as long as you stay long on the
stock. Personally, I'll wait till NTPA gets below 29 to
add to my position, otherwise, I'll just keep what I
already have. NTPA is not the only good stock out there
The consolidation point may very well be in the
low 20's, high 20's, or wherever. And I think we will
definitely test those levels IF no news is issued. Should
there be the news everyone is expecting, however, you
guys waiting for the low 20's may never have a chance.
Only time will tell. I, for one, will not wait to see
those levels. I'll be long out should we continue to
head in that direction. I will cut those losses.
opinions of 32 being violated. NTPA has shown to
have a life separate from the girations and fears that
permeate the Street
every now and then. The trade
deficit has been a bogey -man for years and now somehow
Wall Streeet see great problems with it.
of oil and the millions of SUV's gas guzzling down
the highway no doubt helped bring this upon us.NTPA
has technology that will help with energy efficiency
via e-commerce... so where's the connection? The fact
is and has been NTPA has moved up ,when it had
strong fundamental news from the company . It has not
had much in the past month except for the the
"Stinger" technology compatibility with Lucent. When it
moves its going to catch many a speculator by surprise
and force a feeding frenzy, as we have seen before.
That is the nature of this baby . Don't expect
anything different now.