Posted on May 12, 2016 in Press
Wall Street just got its second tech initial public offering of the year — and it looks like profits are sexy again.
Acacia Communications — a Massachusetts-based maker of high-speed optical data cabling — raised $103.5 million in cash as it priced 4.5 million shares at $23, at the high end of the range.
While Acacia’s business may sound boring, investors got turned on by its profits. Last year, Acacia generated $40.5 million in net come as its revenue surged 65 percent, to $239 million.
That kind of profitability hasn’t been typical for the most talked-about tech companies of late.
Silicon Valley darlings like Uber, Airbnb and Snapchat have spent heavily on growth, racking up heavy losses in the process.
“If the profit margins are what make this deal attractive to Wall Street, we won’t be seeing any Silicon Valley deals until the end of 2018,” said Rett Wallace of Triton Research, a New York-based research firm focused on tech IPOs.
Read full article at nypost.com
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