Strong Performance by Qualstar IPO Expected
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With only a smattering of IPOs expected to be priced this week, the low-profile deal from Canoga Park-based Qualstar Corp. (QBAK) could be among the best performers, according to Ben Holmes, president of IpoPros.com.
Qualstar, which designs, makes and sells automated magnetic tape libraries, plans to offer 3.25 million shares at $10 to $12 each through underwriters First Security Van Kasper, Needham & Co. and Wedbush Morgan Securities.
For the record:
12:00 a.m. May 3, 2000 For the Record
Los Angeles Times Wednesday May 3, 2000 Home Edition Business Part C Page 3 Financial Desk 1 inches; 32 words Type of Material: Correction
Qualstar earnings--The Times incorrectly reported Tuesday profit and revenue figures for Qualstar Corp. For the 12 months ended Dec. 31, the company’s net income was about $6 million and its revenue was about $39.5 million.
Though the deal is backed by three lesser-known underwriters, Holmes said, the company’s financials look sound. For the year ended Dec. 31, Qualstar netted $8.5 million on $22.5 million in sales, both figures nearly double the year-earlier numbers.
“This company is quite profitable,” Holmes said. “It’s amazing that three small underwriters signed this deal, but even a blind dog stumbles across a bone sometimes.”
He said DigitalWork.com Inc. (DWRK) of Chicago, which provides Web-based services to small businesses, looks like the most promising other deal among the eight on tap. It plans to offer 6.25 million shares at $11 to $13 via Lehman Bros. Inc.
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