COMPUTER TESTER NETCOM FILES FOR PUBLIC OFFERING.Byline: Ben Sullivan Daily News Staff Writer Netcom Systems Inc., which makes equipment to test computer networks, said Friday that it plans to go public. In documents filed with the Securities and Exchange Commission, the company said it plans to sell 20 percent of the company - or about 12.4 million common shares - in a $148.8 million initial public offering. At an expected sell price of between $11 and $13, the shares would give Netcom an implied market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of more than $730 million. Netcom makes a system called SmartBits that tests the speed at which the routers, switches and processors that make up a computer network swap information. Network equipment manufacturers use the system to ensure their products function properly and at maximum efficiency. In its SEC filing, Netcom said its customers include telecommunications companies See telecom company. , Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. , financial institutions and government agencies. Netcom had 1997 net income of $22.8 million on revenues of $56.3 million, up from earnings of $11.8 million on $27.5 million in sales the year before. ``The company's future growth is dependent on sales to end users and service providers,'' the filing said in a section detailing risk factors. Netcom said it will use proceeds of the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. to repay debt and redeem existing shares, and to fund expanded sales, marketing and the hiring of additional personnel. The company hopes its shares will trade on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the NTCM NTCM Noncoherent Trellis-Coded Modulation NTCM Nested Tropical Cyclone Model symbol. |
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