NEW YORK-Digital Microwave Corp., a California-based designer and manufacturer of wireless telecommunications interconnection and access products, was expected to sell a secondary common stock offering of 2.2 million shares late last week via Smith Barney Inc., lead underwriter.
Assuming the opening price of the add-on issue is $37.625 per share, the company anticipates garnering net proceeds of approximately $76 million.
As of Feb. 13, there were approximately 215 holders of its common stock, which trades on Nasdaq, according to a preliminary prospectus for the equities sale.
The company said it has no specific immediate plans for spending the new equity. Net proceeds will be used for working capital, development and marketing of new products and possibly for future acquisitions of complementary technologies, businesses or products.
Digital Microwave, headquartered in San Jose,, Calif., has sold a total of about 70,000 radios since it was founded in 1984. It markets its products directly to service providers and to original equipment man-ufacturers, including Siemens AG, which is its single largest customer, as well as to Motorola Inc. and L.M. Ericsson.
Net sales for the first nine months of its current fiscal year, which ends March 31, are expected to total $126.1 million, up from $114.2 million for the same period in Fiscal 1996.
An increasing amount of the company’s sales are overseas. For the first nine months of FY 1997, net sales were $58.8 million in Europe, $36.9 million in the Asia/Pacific region and $30.4 million in North and South America. During the same period the prior fiscal year, the mix was $55.7 million in Europe, $28.8 million in Asia/Pacific and $29.7 million in the Americas.
