Meru Networks (MERU), a California based provider of virtualized wireless LAN solution priced its IPO yesterday at $15 per share, at the high end of its range.
Business Overview (from prospectus)
We provide a virtualized wireless LAN solution that cost-effectively optimizes the enterprise network to deliver the performance, reliability,
predictability and operational simplicity of a wired network, with the advantages of mobility. We enable enterprises to migrate their business-critical applications from wired networks to wireless networks, and become what we refer to as All-Wireless Enterprises.
Offering: 4.4 million shares at $15 per share (expected range was $13 - $15). Net proceeds from the offering will be used primarily for research and development, technology acquisition and general corporate purpose.
Lead Underwriters: BofA Merrill Lynch (BAC), Robert Baird, Cowen & Company (COWN)
Financial Highlights:
Total revenues increased to $69.5 million in 2009 from $54.7 million in 2008...Gross margin increased from 47% in 2008 to 60% for 2009...Sales and marketing expenses decreased to $25.8 million in 2009 from $30.2 million in 2008...Net loss decreased to $17.4 million in 2009 from $26.8 million in 2008...
Competitors
The wireless networking market is highly competitive and continually evolving. We believe that we compete primarily on the basis of providing a comprehensive solution that delivers high-performing, reliable and predictable wireless networking solutions in a cost-effective manner. We believe other principal competitive factors in our market include the ability to provide quality customer service and support, the ease with which a wireless network can be initially deployed and scaled to meet an enterprise’s needs, the interoperability of a wireless network with a wide range of devices, the ability to provide appropriate levels of security and the ability to bundle wireless products with other networking offerings.
Our primary competitors include Cisco Systems (CSCO), primarily through its wireless networking business unit, Aruba Networks (ARUN), Motorola (MOT) through its acquisition of Symbol Technologies and Hewlett-Packard (HPQ) through its acquisition of Colubris Networks. We also face competition from a number of smaller private companies.
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