This Week's IPOs: Affinion Group Holdings, Compellent Technologies, EyeTel Imaging, Targanta Therapeutics, Textainer Group Holdings, Virgin Mobile USA, BioHeart

|
 |  Includes: AFI-OLD, BHRT, CML, EYT, TARG, TGH, VM
by: Abbi Adest

IPOs on tap for this week include: Affinion Group Holdings (AFI-OLD),global provider of comprehensive marketing services and loyalty programs; Compellent Technologies (NYSE:CML), a provider of enterprise-class network storage solutions; EyeTel Imaging (EYT), a medical diagnostic company that that designs technology to help doctors diagnose preventable blindness; Targanta Therapeutics (TARG), a biopharmaceutical company focused on the development and commercialization of innovative antibiotics for serious infections treated or acquired in hospitals and other institutional settings; Textainer Group Holdings (NYSE:TGH), a lessor of intermodal containers based on fleet size; Virgin Mobile USA (VM), a leading national provider of wireless communications services, offering prepaid, or pay-as-you-go, services targeted at the youth market and BioHeart (OTCPK:BHRT) a biotechnology company focused on the development of autologous cell therapies for the treatment of chronic and acute heart damage

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

AFFINION GROUP HOLDINGS, INC. (AFI-OLD)

Business Overview (from prospectus)

We are a leading global provider of comprehensive marketing services and loyalty programs to many of the largest and most respected companies in the world. We partner with these leading companies to develop customized marketing programs that provide valuable products and services to their end customers using our creative design and product development capabilities. These products and services enable our marketing partners to strengthen their customer relationships as well as generate significant incremental revenue, generally in the form of commission payments paid by us. We have substantial expertise in deploying various types of media, such as direct mail and the Internet, and bundling unique benefits to offer valuable products and services to the end customers of our marketing partners on a highly targeted basis. We provide credit monitoring and identity-theft resolution, accidental death and dismemberment insurance (“AD&D”), discount travel services, loyalty programs, various checking account and credit card enhancement services and other products and services. We believe we are a market leader in each of our product areas and that our portfolio of products and services is the broadest in the industry. Our scale, combined with our nearly 35 years of experience, unique proprietary database, proven marketing techniques and strong marketing partner relationships, position us to perform well and grow in a variety of market conditions.

Offering: 32.5 million shares at $15.00 - $17.00 per share. Net proceeds of approximately $490.0 million will be used to repay various debts, redeem outstanding shares of preferred stock, and for general corporate purposes.

Lead Underwriters: Morgan Stanley, Deutsche Bank

Financial Highlights:

For the year ended December 31, 2006, we reported net revenues of $1,137.7 million, a decrease of $61.0 million, or 5.1%, as compared to net revenues of $1,198.7 million for the comparable period in 2005... Marketing and commissions expense decreased by $7.4 million, or 1.3%, to $580.9 million for the year ended December 31, 2006 from $588.3 million for the year ended December 31, 2005... Operating costs decreased by $37.6 million, or 10.3%, to $326.1 million for the year ended December 31, 2006 from $363.7 million for the year ended December 31, 2005... General and administrative expenses decreased by $22.5 million, or 17.4%, to $107.1 million for the year ended December 31, 2006 from $129.6 million for the year ended December 31, 2005.

COMPELLENT TECHNOLOGIES, INC. (CML)

Business Overview (from prospectus)

We are a leading provider of enterprise-class network storage solutions that are highly scalable, feature rich and designed to be easy to use and cost effective. Our Storage Center is a Storage Area Network, or SAN, that enables users to intelligently store, recover and manage large amounts of data by combining our sophisticated software with standards-based hardware into a single integrated solution. As of August 31, 2007, Storage Center was being utilized by more than 600 enterprises worldwide, across a wide variety of industries including education, financial services, government, healthcare, insurance, legal, media, retail, technology and transportation. We believe that Storage Center is the most comprehensive enterprise-class network storage solution available today, providing increased functionality and lower total cost of ownership when compared to traditional storage systems.

Offering: 6.0 million shares at $10.00 - $12.00 per share. Net proceeds of approximately $59.4 million will be used for sales and marketing activities, for research and development activities, for working capital and for general corporate purposes.

Lead Underwriters: Morgan Stanley, Needham & Co.

Financial Highlights: Total revenue increased 135.4% from $9,911, 000 in 2005 to $23,333,000 in 2006... Cost of revenue increased 112.5% from $5,962,000 in 2005 to $12,671,000 in 2006... Total operating expenses increased 34.7% from $13,213,000 in 2005 to $17,802,000 in 2006. EYETEL IMAGING (EYT)

Business Overview (from prospectus)

We are a medical diagnostic company that designs, develops and commercializes proprietary technology and services that help physicians to diagnose three leading causes of preventable blindness:


• age-related macular degeneration, or AMD;
• glaucoma; and
• diabetic retinopathy.

The EyeTel System is currently used in primary diabetes care practices of medical and osteopathic doctors (such as endocrinologists and family physicians) to detect diabetic retinopathy in their patients. We are also targeting optometry practices that provide primary eye care for use of the EyeTel System to help detect AMD, glaucoma, and diabetic retinopathy. In early 2007, we launched a new version of the EyeTel System for the optometry market. It is based on our DigiScope® hardware platform with a different software application which provides a broader array of selectable features (including different imaging modes and built-in report generation tools) to specifically meet the needs of optometrists. We anticipate generating revenue from our optometry product in the third quarter of 2007.

Offering: 3.5 million shares at $7.00 - $8.00 per share. Net proceeds of approximately $22,357,500 will be used for capital expenditures for DigiScopes®, sales and marketing, research and development, repayment of debt, repayment of stockholder loans and for general corporate purposes.

Lead Underwriters: Stanford Group Company, Maxim Group LLC

Financial Highlights:

Revenue increased $564,812, or 88%, to $1,206,124 in the twelve months ended December 31, 2006 from $641,312 in the twelve months ended December 31, 2005... Cost of revenues increased $488,224, or 88%, to $1,044,650 in the year ended December 31, 2006 from $556,426 in the year ended December 31, 2005... Research and development expenses decreased $47,083, or 9%, to $506,143 in the year ended December 31, 2006 from $553,226 in the year ended December 31, 2005... Sales and marketing expenses decreased $741,783, or 26%, to $2,070,419 in the year ended December 31, 2006 from $2,812,202 in the year ended December 31, 2005.

TARGANTA THERAPEUTICS CORPORATION (TARG)

Business Overview (from prospectus)

We are a biopharmaceutical company focused on the development and commercialization of innovative antibiotics for serious infections treated or acquired in hospitals and other institutional settings. We are developing oritavancin, a novel intravenous antibiotic, for the treatment of serious gram-positive bacterial infections, including complicated skin and skin structure infections, or cSSSI, and bacteremia, an infection caused by bacteria in the bloodstream. Gram-positive bacteria have evolved into strains that are highly resistant to many currently available antibiotics, creating an ever-evolving need for novel antibiotics that employ different mechanisms to control them. According to IMS Health, antibiotics designed to treat serious infections caused by resistant gram-positive bacteria accounted for approximately $945 million in United States sales in 2006 and this market is rapidly growing.

Offering: 5.8 million shares at $12.00 - $14.00 per share. Net proceeds of approximately $67.9 million will be used to fund clinical trials and costs associated with regulatory filings; marketing and commercialization costs of products upon regulatory approval; repayment of debt and for general corporate purposes. Lead Underwriters: Credit Suisse, Cowen & Company

Financial Highlights:

We recorded no revenue in the fiscal years ended May 31, 2005 or December 31, 2006... Research and development expense for the fiscal year ended December 31, 2006 was $11.5 million, compared to $4.5 million for the fiscal year ended May 31, 2005... General and administrative expense for the fiscal year ended December 31, 2006 was $3.4 million, compared to $1.4 million for the fiscal year ended May 31, 2005... Interest income for the fiscal year ended December 31, 2006 was $280,000, compared to $78,000 for the fiscal year ended May 31, 2005.

TEXTAINER GROUP HOLDINGS LTD. (TGH)

Business Overview (from prospectus)

Operating since 1979, we are the world’s largest lessor of intermodal containers based on fleet size (Containerisation International Market Analysis: Container Leasing Market 2007), with a total fleet of more than 1.3 million containers, representing over 2,000,000 TEU. We lease containers to more than 300 shipping lines and other lessees, including each of the world’s top 20 container lines, as measured by the total TEU capacity of their container vessels (“container vessel fleet size”). We believe we are one of the most reliable lessors of containers, in terms of consistently being able to supply containers in locations where our customers need them. We have provided an average of more than 90,000 TEU of new containers per year for the past 12 years, and have been one of the largest purchasers of new containers among container lessors over the same period. We believe we are also one of the two largest sellers of used containers among container lessors, having sold an average of more than 45,600 containers per year for the last five years. We provide our services worldwide via a network of 14 regional and area offices and over 300 independent depots in more than 130 locations. Trencor, a company publicly traded on the JSE Limited (the “JSE”) in Johannesburg, South Africa, and its affiliates currently have beneficiary interest in a majority of our issued and outstanding common shares and will continue to have a majority interest after giving effect to this offering.

Offering: 9.0 million shares at $19.00 - $21.00 per share. Net proceeds of approximately $167.5 million will be used to repay debt, to pay for the purchase of half of the interests held by FB Aviation and Intermodal Finance Holding B.V., a Netherlands corporation, and FB Transportation Capital LLC, in the company's subsidiary, Textainer Marine Containers Limited and for general corporate purposes.

Lead Underwriters: Credit Suisse, Wachovia Securities

Financial Highlights:

Lease rental income decreased $2,811 (1.5%) from [ $188,904,000 in] 2005 to [$186,093,000 in ] 2006... Direct container expense increased $5,443 (22.4%) from [$24,314,000 in] 2005 to [$29,757,000 in] 2006... Cost of trading containers sold decreased $1,464 (11.3%) from [$12,944,000] 2005 to [$11,480,000 in] 2006...

VIRGIN MOBILE USA (VM)

Business Overview (from prospectus)

We are a leading national provider of wireless communications services, offering prepaid, or pay-as-you-go, services targeted at the youth market. Our customers are attracted to our products and services because of our flexible monthly terms, easy to understand pricing structures, stylish handsets offered at affordable prices and relevant mobile data and entertainment content. We believe that the appeal of our brand and products and services extends beyond our target audience and estimate that approximately half of our current customers are ages 35 and over. We offer our products and services on a flat per-minute basis and on a monthly basis for specified quantities, or buckets, of minutes purchased in advance—in each case without requiring our customers to enter into long-term contracts or commitments.

Offering: 27.5 million shares at $15.00 - $17.00 per share. Net proceeds of approximately $375.6 million will be used to pay Sprint Nextel for limited liability company interests representing approximately 16.7% of Virgin Mobile USA, LLC, investments, and to repay debt.

Lead Underwriters: Lehman Brothers, Merrill Lynch, Bear Stearns

Financial Highlights:

Total operating revenue for the year ended December 31, 2006 was $1,110.6 million compared to $989.9 million for the prior year, an increase of $120.6 million, or 12.2%... Net service revenue was $1,020.1 million for the year ended December 31, 2006 compared to $883.8 million for the prior year, an increase of $136.2 million, or 15.4%... Net service revenue was $1,020.1 million for the year ended December 31, 2006 compared to $883.8 million for the prior year, an increase of $136.2 million, or 15.4%... Cost of service was $299.1 million for the year ended December 31, 2006 compared to $309.3 million for the prior year, a decrease of $10.2 million, or 3.3%.

BIOHEART (OTCPK:BHRT)

Business Overview (from prospectus)

We are a biotechnology company focused on the discovery, development and, subject to regulatory approval, commercialization of autologous cell therapies for the treatment of chronic and acute heart damage. Our lead product candidate is MyoCell, an innovative clinical therapy designed to populate regions of scar tissue within a patient’s heart with autologous muscle cells, or cells from the patient’s body, for the purpose of improving cardiac function in chronic heart failure patients. The core technology used in MyoCell has been the subject of human clinical trials conducted over the last six years involving 84 enrollees and 70 treated patients.

Offering: 3.6 million shares at $14.00 - $16.00 per share. Net proceeds of approximately $6.8 million will be used to complete clinical trials, for further development, to repay debts and for general corporate purposes.

Lead Underwriters: Merriman Curhan Ford, Dawson James

Financial Highlights:

Total revenues were $106,000 and $135,000 in 2006 and 2005, respectively... Cost of sales was $73,000 in 2006 as compared to $87,000 in 2005... Research and development expenses were $6.9 million in 2006, an increase of $2.4 million, or 51.7%, from research and development expenses of $4.5 million in 2005... Total net interest income was $127,000 in 2006 compared to total net interest income of $37,000 in 2005.