Caldera

[Peter Bart <peterb@xxxxxxx>]

Caldera and FairMarket IPOs on tap next week
By Dawn Kawamoto
Staff Writer, CNET News.com
March 10, 2000, 4:40 p.m. PT
URL: http://news.cnet.com/category/0-1003-200-1570085.html

For investors in initial public offerings it doesn't get much better than this: IPOs are
scheduled next week for
Linux software maker Caldera Systems and online auction builder Fairmarket.

Both companies have already raised their target prices due to strong investor interest.

Caldera Systems today increased its pricing range 11 percent at $8 to $10 a share. Based
on the high end of
its range and the 5 million shares it expects to sell, the company could raise $50
million.

FairMarket, meanwhile, raised its pricing range 36 percent at $13 to $15 and hopes to
raise up to $75 million,
based on the high end of its range and the 5 million shares it will sell.

Investors may see even more price increases before the companies' shares make their public
debut.

"Linux companies have been getting huge pops, then the stocks settle back," said Jeff
Hirschkorn, senior
analyst with IPO.com. "Even though Caldera raised their range today, I expect to see
another increase before
they go out. And no matter what price they set, these companies always seem to go higher
(when they debut)."

VA Linux last year captured the IPO title by posting the largest first-day gain ever for
an IPO, a whopping 698
percent. But the shares have since slipped 50 percent.

Shares of Linux companies such as Red Hat and Cobalt Networks have either maintained their
lofty early
prices or continued to climb. Analysts have attributed the run-ups in shares to the short
supply of Linux
companies that have gone public.

Caldera is expected to price Thursday and begin trading Friday under the ticker "CALD."
Robertson Stephens
is the lead underwriter.

Last year, Caldera generated revenues of $3.1 million for the fiscal year ended October,
compared with $1.1
million the previous year. Net losses reached $9.4 million for the period, compared with a
loss of $8 million a
year earlier.

FairMarket posted a $16.5 million loss on revenues of $2.1 million for the year ended Dec.
31.

Analysts expect the company to ride the coattails of other online auction infrastructure
companies that launched
successful IPOs. "This company is similar to FreeMarkets, which did really well with its
IPO," Hirschkorn said.
"And FairMarket also has three high-profile customers that own stakes."

Those customers are Microsoft, Excite@Home and Ticketmaster Online-City Search. After the
IPO, Microsoft
will hold an 18 percent stake, Excite@Home 13 percent, and Ticketmaster 7 percent.

FairMarket is expected to price Monday and begin trading Tuesday under the ticker "FAIM."
Deutsche Banc
Alex Brown is the lead underwriter.

Caldera and FairMarket will be among the expected 19 deals to debut next week, which are
anticipated to
raise a staggering $7.2 billion.

Other IPOs that could yield strong performances next week include semiconductor companies
Infineon
Technologies, which provides chips to wireless companies, and PSI Technologies, an
independent
semiconductor testing company.

Other notables include Digitas, an Internet consulting firm, Loudeye Technologies, a
software provider for
encoding digital media, and RADVision, which allows companies to send voice and data over
networks.