This Week's IPOs II: GSI Technology, SenoRx, Super Micro Computer

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 |  Includes: GSIT, SENO, SMCI
by: Abbi Adest

Other IPOs expected this week are: GSI Technology (NASDAQ:GSIT), produces SRAM products for the networking industry; SenoRx (SENO), a company that produces diagnostic and treatment devices for breast cancer; and Super Micro Computer (NASDAQ:SMCI) a maker of customizable server systems.

All quotations are from the companies' most recent S-1 filings with links provided for each company.

GSI TECHNOLOGY (GSIT)
Business Overview (from prospectus)

We develop and market "Very Fast" static random access memory, or SRAM, products that are incorporated primarily in high-performance networking and telecommunications equipment, such as routers, switches, wide area network infrastructure equipment, wireless base stations and network access equipment. In addition, we serve the ongoing needs of the military, industrial, test equipment and medical markets for high-performance SRAMs. Gartner Dataquest divides the SRAM market into segments based on speed. The highest performance segment is comprised of SRAMs that operate at speeds of less than 10 nanoseconds, which we refer to as "Very Fast SRAMs." Gartner Dataquest estimates that this segment of the SRAM market will be greater than $1 billion in 2007. Based on the performance characteristics of our products and the breadth of our product portfolio, we consider ourselves to be a leading provider of Very Fast SRAMs.

Offering: 8.0 million shares at $6.50-$8.00 per share. Net proceeds of approximately $40.2 million will be used for working capital and other general corporate purposes, including capital expenditures and research and development.

Lead Underwriters: Needham & Co., WR Hambrecht

Financial Highlights:

Net revenues increased by 35.0% from $32.7 million in the nine months ended December 31, 2005 to $44.2 million in the nine months ended December 31, 2006... Cost of revenues increased by 19.2% from $22.8 million in the nine months ended December 31, 2005 to $27.2 million in the nine months ended December 31, 2006...Gross profit increased by 71.2% from $9.9 million in the nine months ended December 31, 2005 to $17.0 million in the nine months ended December 31, 2006.

SENORX INC. (SENO)
Business Overview (from prospectus)

We develop, manufacture and sell minimally-invasive medical devices for the diagnosis of breast cancer. Our initial product focus has been biopsy systems and breast tissue markers. We also are developing products for use in the treatment of breast cancer that we will seek to commercialize beginning in the second half of 2007, subject to receipt of required regulatory approvals, including a radiation balloon for localized radiation therapy and cutting devices for both excision of tissue and cosmetic reconstruction. With the emergence of clinicians coordinating multi-disciplinary patient care through integrated breast centers, we believe that our ability to provide a broad array of products will enhance our competitive positioning. Many of our products and products under development rely on our proprietary tissue cutting technologies, which include both mechanical and radiofrequency cutting mechanisms. Since we launched our first products in 2002, we have established over 1,000 customer accounts.

Offering: 5.5 million shares at $11.00-$13.00 per share. Net proceeds of approximately $59.4 million will be used to repay debt, expand product development, regulatory and clinical initiatives.

Lead Underwriters: Banc of America, Citigroup

Financial Highlights:

Net revenues increased $6.25 million, or 32.5%, to $25.5 million in the 2006 from $19.25 million in 2005...Cost of good sold increased $3.4 million or 33.7%, to $13.5 million in 2006 from $10.1 million in 2005...Research and development expenses increased $0.4 million, or 8.6%, to $5.3 million in 2006 from $4.9 million in 2005.

SUPER MIRCRO COMPUTER (SMCI)
Business Overview (from prospectus)

We design, develop, manufacture and sell application optimized, high performance server solutions based on an innovative, modular and open-standard x86 architecture. Application optimized servers are configured to meet specific customer needs in contrast to typical servers which are offered in limited standardized configurations. To meet the needs of our customers, we configure our server solutions by adjusting the amount of memory, which enables computer servers to store data for a period of time, processing power, which enables computer servers to interpret instructions and process data rapidly, and/or input/output capabilities, which enable different components of a computer server to communicate with one another. We develop our systems based on the x86 architecture which is a set of open standard design specifications used by Intel Corporation and Advanced Micro Devices in their microprocessors. Our solutions include a wide range of complete server systems, as well as components which can be used by distributors, OEMs and end customers to assemble server systems.

Offering: 8.0 million shares at $9.50-$11.50 per share. Net proceeds of approximately $58,634,000 will be used to repay debt, for working capital and general corporate purposes.

Lead Underwriters: Merrill Lynch, UBS Investment Bank

Financial Highlights:

Net sales increased by $67.1 million, or 49.1%, from $136.6 million to $203.8 million, for the six months ended December 31, 2005 and 2006, respectively...Cost of sales increased by $56.3 million, or 51.0%, from $110.5 million to $166.8 million, for the six months ended December 31, 2005 and 2006, respectively...Research and development expenses increased by $3.6 million, or 52.1% from $6.9 million to $10.5 million for the six months ended December 31, 2005 and 2006, respectively.