This Week's IPOs Part II: Quark Pharmaceuticals, ShoreTel Inc., Spectra Energy Partners, Spreadtrum Communications

The following are four other companies going public this week: Quark Pharmaceuticals (QURK), a clinical-stage pharmaceutical company that focuses on gene-based treatments for kidney and eye problems; ShoreTel (SHOR), a provider of enterprise IP telecommunication systems; Spectra Energy Partners (SEP), a Delaware limited partnership recently formed by Spectra Energy to own and operate natural gas transportation and storage assets; Spreadtrum Communications (SPRD) a Hong Kong-based fabless semiconductor company that designs, develops and markets baseband processor solutions for the wireless communications market.

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

QUARK PHARMACEUTICALS, INC. (QURK)
Business Overview (from prospectus)

We are a clinical-stage biopharmaceutical company focused on discovering and developing novel therapeutics based on our proprietary gene discovery science and technology, with an initial focus on drug candidates that work through the recently discovered natural mechanism in the cell known as RNA interference, or RNAi. We are developing these drug candidates for the treatment of diseases associated with a disturbed pathological condition of the cells of the body known as oxidative stress. We believe that our insight into the molecular mechanisms underlying diseases associated with oxidative stress, combined with our ability to successfully deliver synthetic molecules of the new class of RNAi therapeutics known as small-interfering RNA, or siRNA, to specific organs in the body, enables us to rapidly develop drug candidates, often directed against the same target across multiple therapeutic areas. We have two product candidates in clinical development: RTP801i-14 for the treatment of wet age-related macular degeneration, and AKIi-5 for the prevention of acute renal failure. We have licensed RTP801i-14 to Pfizer on an exclusive worldwide basis. Our product candidate portfolio is based on novel targets and therapeutic concepts discovered using our proprietary target gene discovery platform, which we call BiFAR. We believe that the combination of this platform and our expertise in designing RNAi-based therapeutics will enable us to continue to advance new product candidates into clinical development.

Offering: 5.0 million shares at $12.00 - $14.00 per share. Net proceeds of approximately $67.3 million will be used for research and product development activities, general administrative activities, and to fund working capital and other general corporate purposes.

Lead Underwriters: J.P. Morgan, Banc of America

Financial Highlights:

Revenue increased from $3.4 million in 2005 to $4.3 million in 2006... Research and development expenses increased from $9.0 million in 2005 to $18.9 million in 2006... Net financial income increased from $377,000 in 2005 to $656,000 in 2006.

SHORETEL, INC. (SHOR)
Business Overview (from prospectus)

We are a leading provider of Internet Protocol, or IP, telecommunications systems for enterprises. Our systems are based on our distributed software architecture and switch-based hardware platform which enable multi-site enterprises to be served by a single telecommunications system. Our systems enable a single point of management, easy installation and a high degree of scalability and reliability, and provide end users with a consistent, full suite of features across the enterprise, regardless of location. As a result, we believe our systems enable enhanced end user productivity and provide lower total cost of ownership and higher customer satisfaction than alternative systems.

Offering: 7.9 million shares at $8.50 - $10.50 per share. The company currently has no plans for the net proceeds of approximately $67.6 million from this offering.

Lead Underwriters: Lehman Brothers, J.P. Morgan

Financial Highlights:

Total revenue increased $26.1 million, or 74%, from $35.5 million in 2005 to $61.6 million in 2006... Total gross margin increased from 52% in 2005 to 56% in 2006...Research and development expenses increased $2.7 million, or 38%, from $7.0 million in 2005 to $9.7 million in 2006.

SPECTRA ENERGY PARTNERS, LP (SEP)
Business Overview (from prospectus)

We are a growth-oriented Delaware limited partnership recently formed by Spectra Energy to own and operate natural gas transportation and storage assets. Our initial assets consist of interests in two interstate natural gas pipeline systems located in the southeastern United States with over 2,100 miles of pipelines, interests in two natural gas storage facilities in Texas and Louisiana with aggregate working gas storage capacity of approximately 35 billion cubic feet, or Bcf, and a liquefied natural gas, or LNG, storage facility in Tennessee.

Offering:10.0 million shares at $19.00 - $21.00 per share.

Net proceeds of approximately $187.5 million will be used to purchase approximately $145.3 million of qualifying investment grade securities, which will be assigned as collateral to secure the term loan portion of our credit facility, pay approximately $7.2 million of expenses associated with the offering and related formation transactions; distribute $25.0 million in cash to subsidiaries of Spectra Energy as reimbursement for capital expenditures incurred by subsidiaries of Spectra Energy prior to this offering related to the assets to be contributed to us upon the closing of this offering, which distribution will be made in partial consideration of the assets contributed to us upon the closing of this offering; and use the remaining proceeds of $10.0 million to fund working capital.

Lead Underwriters: Citigroup, Lehman Brothers

Financial Highlights:

Combined operating revenues increased slightly by $2.6 million in 2006 [$82,609,00] compared to 2005 [$80,003,00]. The increase was primarily due to a $2.6 million net increase from new firm transportation contracts...Combined operating expenses decreased by $8.6 million or 16% in 2006 [ $44,994,000] compared to 2005 [$53,552,000].

SPREADTRUM COMMUNICATIONS, INC. (SPRD)
Business Overview (from prospectus)

We are a fabless semiconductor company that designs, develops and markets baseband processor solutions for the wireless communications market. We combine our semiconductor design expertise with our software development capabilities to deliver highly-integrated baseband processors with multimedia functionality and power management. We have developed our solutions based on an open development platform, enabling our customers to develop customized wireless products that are feature-rich and meet their cost and time-to-market requirements.

Offering: 8.8 million shares at $11.00 - $13.00 per share. Net proceeds of approximately $85.5 million will be used "for working capital and other general corporate purposes, including to finance our growth, develop new products and fund capital expenditures. In addition, we may choose to expand our current business through acquisitions of other businesses, products or technologies."

Lead Underwriters: Morgan Stanley, Lehman Brothers

Financial Highlights:

Our revenue increased by 179.8% to $107.1 million in 2006 from $38.3 million in 2005... Our cost of revenue increased by 114.2% to $63.5 million in 2006 from $29.6 million in 2005...Our gross profit increased by 404.8% to $43.6 million in 2006 from $8.6 million in 2005, and our gross margin increased to 40.7% in 2006 as compared to 22.6% in 2005... Our operating expenses increased by 39.3% to $29.8 million in 2006 from $21.4 million in 2005.