Multiple Expansion - Company Financial Information

Investors are in Love with optical-networking companies. Shares of Avici Systems more than tripled Friday, the company's first day of trading, in a week that saw 10 Internet IPOs hit the markets.

Just as notable was the performance of Corvis, which raised $1.1 billion. In its initial filings, the company, which is building a U.S.-based fiber-optic network, sought to raise $385 million. The stock opened at $74 and traded as high as $98 before settling down to close at $85, giving Corvis a market cap of $27.9 billion. Corvis has shown no revenues and an aggregate loss of $118 million since its inception in 1997, but the company has lined up deals that will bring in revenue. SEC filings show Corvis has $550 million in contracts with Broadwing, Qwest and Williams, but these commitments are pending tests of its product.

COPYRIGHT 2000 Standard Media International
COPYRIGHT 2000 Gale Group