NewsTraders: Server Appliances Maker Cobalt Sees IPO Of 5M Shares At $14-$16

"Cobalt Networks Inc., a manufacturer of server appliances, disclosed that it will offer an 18.3% stake in the company, or 5 million common shares, in its pending initial public offering.

"The Mountain View, Calif.-based firm sees the stock pricing in the $14-to-$16 range, according to SEC papers released late yesterday."

"Server appliances, Cobalt's main product, are a new category of network infrastructure devices specifically designed to deliver network-based applications."

"As of Oct. 1, Cobalt had sold over 17,000 server appliances to more than 1,300 customers in over 65 countries. Cobalt's revenues for the nine months ended Oct. 1 were $13.8 million, with the company posting a net loss of $13.7 million for the same period."

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