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Mellanox Exceeds IPO Hopes

Mellanox became the first storage-related IPO of the year today, and -- like the four 2006 storage IPOs -- it opened with an impressive share price. (See Mellanox Goes Public.)

The Infiniband chip firm began trading publicly today at $17 per share, higher than its original target range of $12 to $14 set last month and even above the revised range of $14 to $16 it announced Tuesday. Mellanox sold 6 million shares and raised $102 million, well above the $86.25 million it hoped for when first filing for the IPO last September. (See Mellanox Ready for IPO .)

The Mellanox IPO follows an active year for storage IPOs, coming one day after EMC revealed plans to spin off 10 percent of its VMware shares into an IPO. (See VMware to Spin Out.)

Isilon and Riverbed began trading above their target shares when they went public last year, and CommVault and Double-Take opened at the high end of their ranges. (See Double-Take, Isilon Go Public, Riverbed Comes Out at $9.75, and CommVault Swims in Public Pool.)

Unlike all the 2006 storage IPOs (except CommVault's), Mellanox was profitable for the previous year at the time of its IPO. According to its SEC filing, Mellanox had income of $3.4 million on $32.7 million in revenues for the first nine months of 2006, up from $1.9 million in revenues and $30 million in income for the first nine months of 2005. Mellanox did not report results from last quarter or the full year for 2006, but claimed income of $3.1 million on revenues of $42 million in 2005.

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