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Summary:

Calix Networks, a Petaluma, Calif.-based broadband gear maker, sold 6.33 million shares at $13 each to raise $82 million from the public markets. One of the rare telecom IPOs, it could help boost the fortunes of other IPO candidates like Force 10 and Telx.

In what could be a red-letter day for not only broadband but for technology stocks, Calix Networks, a Petaluma, Calif.-based broadband equipment maker, has gone public. Shares of the company, which makes equipment for fiber-based networks, especially for independent service providers like CenturyTel, started trading on the NYSE under the ticker “CALX.”

The company raised $82.3 million after selling 6.33 million shares at the top end of its price range, for $13 a share, in an offering underwritten by Goldman Sachs and Morgan Stanley. At last check, shares were changing hands for $16.42. I think the success of Calix’s IPO bodes well for other companies such as Force 10 Networks and data center provider Telx, both of which also hope to go public in 2010. Together they represent the powerful trend of Internet infrastructure upgrades that is currently underway, thanks to demand for broadband-enabled applications, the rise of cloud computing and the popularity of mobile Internet devices.

Calix is an old-fashioned Silicon Valley company. It’s raised gobs of money — more than $200 million from private equity and venture investors including Riverwood Capital, Sprout Group and Foundation Capital. Other investors in the company include TeleSoft Partners, Redpoint Ventures and Azure Capital Partners.

Calix CEO Carl Russo, well known in Silicon Valley for two things — selling optical equipment startup Cerent to Cisco Systems for more than $8 billion and racing cars — last year told me that the company was on target to have sales of $250 million. According to its S-1, Calix clocked sales of $232 million and lost $22.44 million for 2009.

Nevertheless, the company is looking at a bright future — as the National Broadband Plan gets implemented and broadband-related stimulus relief funds are spent by small and independent telecoms, Calix could see a nice lift in its business.

  1. This is great. It’s appropriate to congratulate Calix with this successful IPO, and I wish their executives good luck. Calix is a great company with a visionary executive and evangelist team of experts. Their active equipment is really a great boon to the industry. (I can’t comment on their PON equipment because I couldn’t care less for PON).

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  2. Not Carl Russo Wednesday, March 24, 2010

    Carl manages to make it past the IPO … 11 years later ;-)

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    1. Well let’s just say that is way better than many other start-ups/CEOs.

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  3. 200-300 startup employees at Calix had their stock options voted from great value to almost worthless by Carl Russo and has lacky Mike Hatfield. Who speakes for the employees?
    On a scale of 1-10 for ethics, I vote 0.1 for both of them.

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