Profitable Passave Pushes for IPO - Light Reading

Building off a success in Japan, Passave Technologies Inc. is taking its passive optical networking (PON) chips to the public markets.

The business might seem limited, but it's profitable. For the first six months of 2005, Passave recorded net income of $3.3 million, or 10 cents per diluted share, on revenues of $19 million, according to the SEC filing.

Even 2004 was profitable, to the tune of $1.3 million in net income, or 40 cents per share, on revenues of $21.1 million -- and that's after Passave recorded a loss of $1.6 million for the first six months of 2004.

Passave owes pretty much everything to NTT.

Passave's largest shareholders are BRM Capital and EuroFund Partners, each with an 18.6 percent stake in the company. Vaisleib and Maislos each own 7.9 percent, while Intel Corp. owns 7.4 percent.