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Posted 24 Feb 2001   For week ended July 30, 2000
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News about Mormons, Mormonism,
and the LDS Church
Sent on Mormon-News: 27Jul00

Summarized by Kent Larsen

LDS CEO's Firm Surprises Analysts, Doubles Price Range Ahead of IPO

WASHINGTON, DC -- LDS Church member David Huber's new firm Corvis Corp. surprised some Wall Street analysts by doubling the planned initial public offering price of its offering price to $28 to $30 a share, from $13 to $15 a share ahead of the offering tomorrow. Corvis, a designer and manufacturer of fiber-optic switches, is seeking to raise more than $750 million with the offering amid Wall Street's current love affair with fiber-optics.

The move was particularly surprising in the wake of a patent-infringement lawsuite filed by rival Ciena Corp., of Linthicum, Maryland, which was also founded by Huber and taken public. While some analysts say that there may be some merit behind Ciena Corp.'s lawsuit, others observe that the break between Huber and his former colleagues at Ciena was anything but pleasant, "There's been some bad blood between Huber and [Ciena chief executive Patrick H.] Nettles," said Mark Lutkowitz, president of research firm Trans-Formation Inc.

But analysts say that investors are eager for fiber-optic companies, regardless of the lawsuit. "The market is just super-hot for this stuff," said Pat Dorsey, an analyst for Morningstar, Inc., a mutual fund research firm. "The demand is really there. . . . It's not just people attaching valuations to vapor."

Corvis, which has yet to record any significant sales, plans to use the funds raised for development of its optical switching technology, including expanding its manufacturing operations. But Corvis may have trouble raising as much as it hoped because of the number of companies with IPOs this week. A total of 30 companies have IPOs this week, "This is the most start-studded week I've seen since the first quarter," said George Nichols, another Morningstar analyst.


Corvis Doubles Price Range For Its IPO
Washington Post pg E01 26Jul00 B4
By Yuki Noguchi: Washington Post Staff Writer


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