Goldman, Sachs & Co. and Morgan Stanley will act as joint bookrunning managers, and Thomas Weisel Partners LLC and Pacific Crest Securities will act as co-managers for the offering, according to a press release.
According to its filing, Data Domain will seek a Nasdaq listing under DDUP. According to a Market Watch report, the company is expecting to raise $100 million. "
"Like fellow initial public offerings (IPO) Riverbed Technology Corp. and Islion Systems Inc., Data Domain is not yet profitable. In its consolidated financial form on the S-1 statement, the company showed net losses for 2004, 2005 and 2006, or $9.8 million, $13.7 million and $4.02 million, respectively.
"As of December 31, 2006, our accumulated deficit was $36.6 million," the filing reads. "We expect to continue to incur losses, and we may not become profitable in the foreseeable future."
Meanwhile, Quantum, which holds data deduplication patent through subsidiary Rocksoft, has a patent cross-licensing agreement with Data Domain for its deduplication technology and will receive 390,000 shares of Data Domain's common stock when it is offered.
Data Domain is part of a new "graduating class" of IPOs filed in the storage industry over the last six months. Most of the companies, which now include CommVault Systems Inc. and Double-Take Software Inc., as well as Riverbed and Isilon, were founded in 2002. Riverbed and Isilon both reported losses in their first quarters as public companies. Industry experts also expect further public offerings in the storage market this year. Likely candidates include EqualLogic Corp. and Compellent Technologies Inc. "
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