This Week's IPOs: Russian Women's TV, Spine Surgery and Nanotech (ATEC, CTCM, LUNA)

 |  Includes: ATEC, CTCM, LUNA
by: Evelyn Rubin

After last week's excitement, there are three IPOs on deck for this week: CTC Media (NASDAQ:CTCM), Luna Innovations (NASDAQ:LUNA), and Alphatec Holdings (NASDAQ:ATEC).

CTC Media (CTCM):

Business (From S1):

We operate the CTC Network, a Russian television network offering entertainment programming targeted at 6-54 year-old viewers, and the Domashny Network, a Russian television network principally targeted at 25-60 year-old female viewers. CTC’s signal is carried by more than 300 television stations and local cable operators, including 16 owned-and-operated stations and 17 unmanned repeater transmitters that comprise our CTC Television Station Group. Approximately 100 million people are within the coverage of CTC’s signal [...]

We generate substantially all of our revenues from the sale of television advertising. In 2005, when the market shares of our CTC and Domashny Networks are aggregated, our share of the total Russian television advertising market was approximately 13.6%. The CTC Network’s average overall audience share in 2005 was 10.3% and its average audience share in its target demographic was 12.9%, making CTC the fourth-most watched broadcaster in Russia overall and the third-most watched in its target demographic.

Morgan Stanley, Deutsche Bank

Raise: $16-18 range, number of shares 29.4 million translating to mid-range raise of $500 million

P&L Highlights:2005 net income was $57.3 million on total operating revenues of $237.5 million. Same period the previous year showed a net income of $47.5 million on total operating revenues of $115.6 million. Net income of $43.1 million on total operating revenues of $79.2 million in first three months of 2006; same period last year showed net income of $7.9 million on total operating revenues of $22.7 million.

Alphatec Holdings (ATEC)

Business (from S1)

We are a medical device company focused on the design, development, manufacturing and marketing of products for the surgical treatment of spine disorders. Our principal product offering is primarily focused on the over $2.2 billion U.S. spine fusion market. In addition to our U.S. presence, we also participate in the Japanese spine fusion and orthopedic trauma markets through our subsidiary, Alphatec Pacific.

We offer a broad range of products to our customer base, which primarily consists of spine surgeons. Our principal product offering includes a variety of spinal implant products and systems comprised of components such as spine screws, spinal spacers, and plates and offers multiple solutions to address patients' needs. In September 2005, we acquired substantially all of the assets of Cortek. Through this acquisition, we enhanced our existing portfolio of spine fusion products with a complementary offering of precision milled allograft spacers.

Underwriters: Deutsche Bank, First Albany

Raise: $13-15 range, 9.3 million shares translating to mid-range raise of $130 million.

P&L Highlights: 2005 revenues of $42.3 million; net loss of $14 million. Note that this is not an R&D company: R&D expenses were a negligible $750k; the bulk of the loss originated from SG&A expenses of $35.6 million for the period. For the first three months of 2006, revenues were $18 million, and net loss was $5.6 million.

Luna Inovations (LUNA): (note: carryover from last week)

Opinion (From Clearfish Research, after the filing): "I bet this offer gets pulled before ever making it to market. I would like nothing better than to invest in a Ph.D. heavy, optics research outfit, but wow have these guys not made the case." (see the full piece for detailed analysis)

Business (from S1): "We research, develop and commercialize innovative technologies in two primary areas: molecular technology solutions and sensing solutions. We have a disciplined and integrated business model that is designed to accelerate the process of bringing new and innovative products to market."

ThinkEquity Partners, WR Hambrecht, Merriman Curhan, Ford

Raise: $11-13 range, number of shares 4 million translating to mid-range raise of $48 million.

P&L Highlights: Revenue dropped from $22.6 million in 04 to $16.4 million in 05; First 3 months 06 revenue up from $3.3 million in 05 to $4.5 million in 06. Net income of 4.056 million in 04, and loss of $2 million in 05. First three months of 05 net loss was $200k, and up to $2.1 million in first three months of 06.