This Week's IPOs Part II: Limelight Networks, Starent Networks, Yingli Green Energy

There are three more IPOs on deck for this week. They are: Limelight Networks (LLNW), a provider of Internet content delivery network services for traditional and emerging media companies; Starent Networks (STAR), a company that provides infrastructure hardware and software products and services that allows mobile operators to deliver multimedia services to their subscribers; Yingli Green Energy Holding Company (YGE), a Chinese vertically integrated PV panel manufacturer.

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

LIMELIGHT NETWORKS, INC. (LLNW)
Business Overview (from prospectus)

Limelight Networks is a leading provider of high-performance content delivery network services. We digitally deliver content for traditional and emerging media companies, or content providers, including businesses operating in the television, music, radio, newspaper, magazine, movie, videogame and software industries. Using Limelight’s content delivery network, or CDN, content providers are able to provide their end-users with a high-quality media experience for rich media content, including video, music, games, software and social media.

Offering: 14.4 million shares at $10.00-$12.00 per share. Net proceeds of approximately $114.2 million will be used to fund the company's capital expenditures for network and other equipment, to increase working capital, to create a public market for the company's common stock, to increase the company's ability to access the capital markets in the future, to provide liquidity for existing stockholders, to repay certain indebtedness and for general corporate purposes.

Lead Underwriters: Goldman Sachs, Morgan Stanley

Financial Highlights:

The increase in total revenue for 2006 [$64,343,000] as compared to 2005 [$21,303,000] was due to an increase in revenue from the sale of our recurring CDN services...The increase in cost of revenue for 2006 [$35,978,000] as compared to 2005 [$11,888,000] was primarily due to an increase in aggregate bandwidth and co-location fees of $13.1 million due to higher traffic levels, an increase in depreciation expense of network equipment of $7.4 million due to increased investment in our network, an increase of $1.6 million in royalty expenses, an increase in the payroll and related employee costs of $1.2 million associated with increased staff, an increase of stock-based compensation expense of $0.5 million and an increase of $0.3 million in other costs...During the second half of 2006 and the first quarter of 2007, our gross margins declined as depreciation and amortization increased due to the dramatic increase in the amount of capital investment in network equipment during 2006.

STARENT NETWORKS, CORP. (STAR)
Business Overview (from prospectus)

Starent Networks is a leading provider of infrastructure hardware and software products and services that enable mobile operators to deliver multimedia services to their subscribers. We have created hardware and software products that provide network functions and services, including access from a wide range of radio networks to the operator's packet core network. A packet core network splits traffic into multiple pieces of data, or packets, that are routed over an Internet Protocol, or IP, network and enables mobile operators to deliver multimedia services. Our products and services also provide management of subscriber sessions moving between networks and application of billing and other session policies. Our products and services provide high performance and system intelligence by combining significant computing power, memory and traffic handling capabilities with a flexible, high availability operating system and other proprietary software. Our products integrate multiple network functions and services needed for the delivery of advanced multimedia services, such as video, Internet access, voice-over-IP, e-mail, mobile TV, photo sharing and gaming.

Offering: 10.5 million shares at $9.00-$11.00 per share. Net proceeds of approximately $81.9 million will be used to create a public market for the company's common stock; facilitate future access to the public capital markets; increase the company's visibility in the company's markets; provide liquidity for existing stockholders; improve the effectiveness of they company's equity compensation plans in attracting and retaining key employees; and enhance the company's ability to acquire other businesses, products or technologies.

Lead Underwriters: Goldman Sachs, Lehman Brothers

Financial Highlights:

Revenues increased $34.7 million in 2006 [to $94,350,000 from $59,660,000 in 2005] primarily due to increased product sales to existing customers and recognition of $39.2 million of revenue that was deferred at December 31, 2005 as compared to the recognition in 2005 of $33.0 million that was deferred at December 31, 2004...The $14.1 million increase in cost of revenues [from $13,643,000 in 2005 to $27,726,000 in 2006] was attributable to the increase in hardware and software products sold during 2006 or delivered in previous periods but recognized in revenues during 2006, and higher cost of services... Product gross margin percentage decreased 8 percentage points [from 77% in 2005 to 71% in 2006]...

YINGLI GREEN ENERGY HOLDING COMPANY (YGE)
Business Overview (from prospectus)

We are one of the leading vertically integrated photovoltaic, or PV, product manufacturers in China. Through Tianwei Yingli, our principal operating subsidiary based in China, we design, manufacture and sell PV modules, and design, assemble, sell and install PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With an annual production capacity of 95 megawatts of polysilicon ingots and wafers, 90 megawatts of PV cells and 100 megawatts of PV modules as of the date of this prospectus, we believe we are currently one of the largest manufacturers of PV products in China as measured by annual production capacity. Except for the production of polysilicon materials that are used to manufacture polysilicon ingots and wafers, our products and services substantially cover the entire PV industry value chain from the manufacture of multicrystalline polysilicon ingots and wafers, PV cells, PV modules and PV systems to PV system installation. We believe we are one of the few large-scale PV companies in China to have adopted vertical integration as their business model. Our end-products include PV modules and PV systems in different sizes and power outputs. We sell PV modules under our own brand name, Yingli, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, China and the United States.

Offering: 29.0 million shares at $11.00-$13.00 per share. Net proceeds of approximately US$290.4 million will be used to redeem outstanding mandatory bonds and to make an equity contribution to Tianwei Yingli, which would, subject to obtaining relevant PRC regulatory approvals and registrations, increase the company's equity interest in Tianwei Yingli from 70.11%.

Lead Underwriters: Goldman Sachs, UBS Investment Bank

Financial Highlights:

Total net revenues increased significantly from RMB 361.8 million in 2005 to RMB 1,638.8 million (US$212.2 million) in 2006, due primarily to a significant increase in the sales of PV modules...Cost of revenues increased significantly from RMB 253.6 million in 2005 to RMB 1,186.5 million (US$153.6 million) in 2006...Gross profit increased significantly from RMB 108.2 million in 2005 to RMB 452.3 million (US$58.6 million) in 2006...Operating expenses increased significantly from RMB 24.5 million in 2005 to RMB 85.4 million (US$11.1 million) in 2006.