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IPO.com: Linux Industry Revs For Another Entrant Cobalt Networks: Set to Enter Top 30

“This week’s IPO market may lack a significant amount of deals
set to price, but one offering set to rocket into the marketplace
is involved in the hot emerging sector of Linux Operating Systems.
Cobalt Networks, a Mountain View, Calif.-based firm that provides
server appliances, a new category of servers that work with other
computing devices is on the launching pad to price five million
shares at a range of $14-$16 a share through a Goldman, Sachs-led
syndicate Thursday night….”

“By far, the best deal of the week,” said Paul Bard, an analyst
at Renaissance Capital Management, a Greenwich, Ct.-based firm
focusing on IPOs in a press time interview. “They are heavily
involved in the Linux O/S market and are offering a value
proposition for small companies that want to establish a Web
presence quickly and cost-effectively.

“Founded in 1996, Cobalt is embarking in a market that is
expected to rapidly grow. Dataquest, an independent research firm
part of the GartnerGroup family expects the server appliance market
to hit $15.8 billion in 2003, up from $2.2 billion in 1999,
representing a 64% compound annual growth rate. Moreover, Dataquest
estimates that the market for Linux-based server appliances will
grow at a 72% clip from 1999 to 2003 and represent approximately
24% or $3.8 billion of the total server appliance market by
2003.”

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