This Week's IPOs Part I: Acorn International, AMC Entertainment, CardioMEMS, Cavium Networks, EndoCeutics

We have another strong week for IPOs. The following are summaries of five of the eight IPOs on deck for this week. The IPOs include: Acorn International (ATV), a multi-platform marketing company focused on China; Marquee Holdings, the parent company of AMC Entertainment (AC), which owns and operates a national chain of movie theaters; CardioMEMS (SENS), a company specializing in wireless cardiac devices; Cavium Networks (CAVM), provider of intelligent semiconductor processors which enable intelligent networking, communications and security applications; and EndoCeutics (ENCX), a Canadian pharma company specializing in hormone therapy for the treatment and prevention of breast cancer and endocrine-related disorders in aging patients.

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

ACORN INTERNATIONAL (ATV)
Business Overview (from prospectus)

We are a leading integrated multi-platform marketing company in China with a proven track record of developing, promoting and selling consumer products and services. Our two primary sales platforms are our TV direct sales platform and nationwide distribution network. We operate the largest TV direct sales business in China in terms of revenues and TV air time purchased according to Euromonitor International (Asia) Pte Ltd., or Euromonitor. We believe we were one of the first companies in China to use TV direct sales programs, often referred to as TV infomercials, in combination with a nationwide distribution network to market and sell products and services to consumers. Our significant TV air time presence allows us to test-market, promote and sell products and services in China’s geographically dispersed and fragmented consumer market. We seek to maximize sales penetration of our products and services that have strong sales and brand development potential by distributing them through our nationwide distribution network. In 2006, we also began using our TV direct sales platform to promote and sell third-party branded products and services pursuant to joint sales arrangements and marketing services arrangements.

Offering: 7.7 million shares at $12.50 - $14.50 per share. Net proceeds of approximately $80.3 million will be used for sales and marketing purposes, product and service development, upgrade of technology and other business infrastructure, working capital and general corporate purposes.

Lead Underwriters: Merrill Lynch, Deutsche Bank

Financial Highlights:

In 2006, total net revenues increased by $26.2 million, or 15.4%, to $196.5 million from $170.3 million in 2005... In 2006, total cost of revenues increased by $3.1 million, or 4.4%, to $73.3 million from $70.2 million in 2005... In 2006, gross profits increased by $23.1 million, or 23.1%, to $123.2 million from $100.1 million in 2005, reflecting a $25.2 million increase in direct sales gross profits and a $2.1 million decrease in distribution gross profits...In 2006, income from operations decreased by $18.4 million to $1.6 million from $20.0 million in 2005.

AMC ENTERTAINMENT (AC)
Business Overview (from prospectus)

We are one of the world's leading theatrical exhibition companies based on a number of characteristics, including total revenues. We were founded in 1920 and since that time have pioneered many of the industry's most important innovations, including the multiplex theatre format in the early 1960's and the North American megaplex theatre format in the mid-1990's. In addition, we have acquired some of the most respected companies in the theatrical exhibition industry, including Loews and General Cinema, and we have a demonstrated track record of successfully integrating those companies through timely theatre conversion, headcount reductions and consolidation of corporate operations. As of December 28, 2006, we owned, operated or held interests in 382 theatres with a total of 5,340 screens, approximately 87% of which were located in the United States and Canada. Our theatres are primarily located in large urban markets in which we have a strong market position relative to our competitors. We believe that we have one of the most modern and productive theatre circuits, as evidenced by our average screen per theatre count of 14.7 and our pro forma attendance per theatre of more than 680,000 patrons, both of which we believe to be substantially in excess of industry averages.

Offering: 39.5 million share at $18.00-$20.00 per share. The company will not receive any of the approximately $714.0 million in net proceeds.

Lead Underwriters: Goldman Sachs, Citigroup, Deutsche Bank

Financial Highlights:

Total operating revenues for the year ended December 31, 2005 decreased $48.6 million, or 5.3%, to $874.7 million from $923.3 million for the pro forma year ended December 31, 2004... Loews' operating income for the year ended December 31, 2005 decreased $27.5 million, or 57.8%, to $20.1 million from $47.6 million for the pro forma year ended December 31, 2004...Net loss increased $32.6 million to a loss of $45.0 million for the year ended December 31, 2005 from a loss of $12.4 million for the pro forma year ended December 31, 2004.

CARDIOMEMS, INC. (SENS)
Business Overview (from prospectus)

We are a medical device company that has developed and is commercializing a proprietary wireless sensing and communication technology for the human body. Our technology platform is designed to improve the management of severe chronic cardiovascular diseases such as heart failure, aneurysms and hypertension. Our miniature wireless sensors can be implanted using minimally invasive techniques and transmit cardiac output, blood pressure and heart rate data that are critical to the management of patients. Due to their small size, durability, and lack of wires and batteries, our sensors are designed to be permanently implanted into the cardiovascular system. Using radiofrequency, or RF, energy, our sensors transmit real-time data to our external electronics modules, which then communicate this information to the patient’s physician. We believe frequent, on-demand, real-time monitoring of vital information enables proactive patient management, which holds the promise of reducing hospitalizations, improving a patient’s quality of life and delivering more efficient and cost effective health care.

Offering: 6.0 million shares at $12.00 - $14.00 per share. Net proceeds of approximately $70.6 million will be used for product development, sales and marketing activities and general corporate purposes.

Lead Underwriters: Banc of America, Jefferies

Financial Highlights:

Our revenue in 2005 [$95,000] and 2006 [$3,413,000] was derived from the sale of our EndoSure sensors... Cost of revenue consists of material, labor, freight and the associated overhead costs related to the processes employed in the production of our EndoSure sensors: [2005: $54,000, 2006: $1,913,000]

CAVIUM NETWORKS (CAVM)
Business Overview (from prospectus)

We are a provider of highly integrated semiconductor processors that enable intelligent networking, communications and security applications. We refer to our products as enabling intelligent processing because they allow customers to develop networking equipment that is application-aware and content-aware and securely processes voice, video and data traffic at high speeds. Our products also include a rich suite of embedded security protocols that enable unified threat management, or UTM, secure connectivity and network perimeter protection. Our products are systems on a chip, or SoCs, which incorporate single or multiple processor cores, a highly integrated architecture and customizable software that is based on a broad range of standard operating systems. As a result, our products offer high levels of performance and processing intelligence while reducing product development cycles for our customers and lowering power consumption for end market equipment. Our products are used in a broad array of networking equipment, including routers, switches, content-aware switches, UTM and other security appliances, application-aware gateways, voice/video/data, or triple-play, gateways, wireless local area network, or WLAN, and 3G access and aggregation devices, storage networking equipment, servers and intelligent network interface cards.

Offering: 6.3 million share at $10.00 - $12.00 per share. Net proceeds of approximately $61.5 million will be used to repay debt, for possible future acquisitions and for general corporate purposes.

Lead Underwriters: Morgan Stanley, Lehman Brothers

Financial Highlights:

Our revenue was $34.2 million in 2006 as compared to $19.4 million in 2005, an increase of 76.3%...Gross margin increased 2.3 percentage points to 61.7% in 2006 from 59.4% in 2005...Research and development expenses increased $2.7 million, or 16.9%, to $18.7 million in 2006 from $16.0 million in 2005... Sales, general and administrative expenses increased $3.2 million, or 47.1%, to $10.0 million in 2006 from $6.8 million in 2005.

ENDOCEUTICS, INC. (ENCX)
Business Overview (from prospectus)

We are a [Canadian] biopharmaceutical company developing hormone therapies for the treatment and prevention of breast cancer and endocrine-related disorders, especially those affecting postmenopausal women and aging men. We are developing late-stage product candidates for the treatment and prevention of breast cancer and a variety of conditions affecting postmenopausal women. We plan to commence three Phase III clinical trials in the next twelve months. We are also supporting a Phase III clinical trial being conducted in collaboration with an academic research institution evaluating one of our compounds. We anticipate that the net proceeds from this offering will be sufficient to fund two of our product development programs through the completion of currently planned Phase III clinical trials and, if data from these trials are positive, the filing of New Drug Applications, or NDAs, in the United States. Assuming favorable clinical trial results, we anticipate filing an NDA for one of these product candidates in 2008 and for the other in 2009.

Offering: 5.8 million share at $11.00 - $13.00 per share. Net proceeds of approximately $61.5 million will be used to repay debt, fund additional clinical trials and other preclinical product candidates.

Lead Underwriters: First Albany, Stifel Nicolaus

Financial Highlights:

EndoResearch derives its revenue from two sources, funding related to research contracts performed by it, and royalties that it receives relating to the sales of previously developed products. In the six-month period ended July 31, 2006 its total revenue of $499,000 reflected a decrease of $2 million, or 80%, relative to the revenue for the six-month period ended July 31, 2005. The change in total revenue was primarily driven by the timing of recognition of costs incurred by EndoResearch for development of acolbifene, which payments increased significantly in the six-month period ended July 31, 2005 as compared to the six month period ended July 31, 2006...Costs and expenses incurred by EndoResearch are composed primarily of costs incurred under research contracts. Research and developments costs are composed of salaries and related employee benefits, material and other product costs and consulting fees. Research and development costs are reduced by the amount of tax credits received from the province of Quebec. Net of these tax credits, EndoResearch’s research and development expense was $1.5 million and $1.3 million in each six-month period ending July 31st 2006 and 2005.