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Based in San Jose, CA, Nimble Storage (NYSE:NMBL) scheduled a $136 million IPO on the NYSE with a market capitalization of $1.4 billion at a price range midpoint of $17 for Friday, December 13, 2013. The price range mid-point recently was raised to$19 and the conclusion remains the same.

Nine operating company IPOs are scheduled for this week. The full IPO calendar can be found at IPOpremium.

SEC Documents

Manager, Joint managers: Goldman Sachs/ Morgan Stanley

Co-Managers: Pacific Crest, William Blair, Stifel, Oppenheimer & Co., Needham & Co.

Summary

NMBL's mission is to provide its customers with the industry's most efficient data storage platform.

NMBL has designed and sells a flash-optimized hybrid storage platform that it believes is disrupting the market by enabling significant improvements in application performance and storage capacity.

For the nine months ended September '13 sales increased 250% to $84 million compared with year earlier results.

Gross profit increased to 64% from 62%.

Loss % of revenue declined to -36% from -52%.

Valuation

Accumulated deficit ($mm)

($88)

Immediate per share dilution to IPO shareholders

($14.9)

Valuation Ratios

Mrkt

Price /

Price /

Price /

Price /

% offered

annualizing Sept 9 mos

Cap (MM)

Sls

Erngs

BkVlue

TanBV

in IPO

Nimble Storage

$1,195

10.7

-29.9

8.1

8.3

11%

Glossary

Conclusion
Buy NMBL on the IPO.

To put the conclusions and observations in context, the following is reorganized, edited and summarized from the full S-1 referenced above:

Business

NMBL's mission is to provide its customers with the industry's most efficient data storage platform.

NMBL has designed and sells a flash-optimized hybrid storage platform that it believes is disrupting the market by enabling significant improvements in application performance and storage capacity with superior data protection, while simplifying business operations and lowering costs.

At the core of NMBL's innovative platform is its Cache-Accelerated Sequential Layout file system software, which NMBL calls its CASL technology, and its cloud-based storage management and support service, InfoSight.

Enterprises and cloud-based service providers today are overwhelmed by numerous storage challenges including increasing costs, capacity and performance tradeoffs, management complexity and data protection issues.

These challenges have been exacerbated by key trends in the data center: the rapid proliferation of applications with varying performance requirements, increased use of virtualization and the exponential growth in data.

Over the last several years, major technological advancements have been made in flash storage media and data analytics, but traditional storage system providers have been unable to fully capture these improvements into system performance and efficiency at reasonable cost. NMBL believes that a fundamental change to the software architecture underlying storage systems is required to fully take advantage of these advancements.

Intellectual property
As of October 31, 2013, NMBL had one issued patent and nine patent applications pending in the United States.

Competition

NMBL's main competitors fall into two categories:

Large storage system vendors, such as EMC and NetApp, that offer a broad range of storage systems targeting varied use cases and end markets; and

Large systems companies, such as Dell and HP, that have acquired specialist storage vendors in recent years to complement their internally-developed storage offerings and have the technical and financial resources to bring competitive products to the market.

5% stockholders

Entities affiliated with Accel Partners

SC US GF V Holdings, Ltd.

Lightspeed Venture Partners VIII, L.P.

Use of proceeds

NMBL expects to net $123 million from its IPO. Proceeds are allocated as follows:

primarily for general corporate purposes, including working capital, sales and marketing activities, product development, general and administrative matters and capital expenditures.

This NMBL IPO report is based on a reading and analysis of NMBL's S-1 filing, which can be found here, and a separate, independent analysis by IPOdesktop.com. There are no unattributed direct quotes in this article.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Source: IPO Preview: Nimble Storage