backtop


Print 80 comment(s) - last by JKflipflop98.. on Oct 6 at 5:58 PM

Newegg finally goes public, with financial analysts expecting big things

Online retailer Newegg today announced plans to go public, filing for a $175 million IPO, according to an SEC filing.

Newegg is best known as a technology e-tailer, but has expanded of late to include other consumer electronics.  Since launching in 2001, the company has been profitable every year, with $2.1 billion in sales in 2008.  In 2007, the company saw $1.9 billion in sales, with the number expected to increase as Newegg expands its business.

The company has seen dramatic success after making changes to support small- and medium-sized businesses in the United States.  Newegg also has its sights outside the United States, with China expected to be an important step in the company's continued expansion.  Furthermore, Canada also is expected to be a big market for Newegg, with many Canadians long requesting to be able to make purchases from the site.

The company does have to deal with several issues in the immediate future, including a patent infringement lawsuit filed by Soverain Software, according to the IPO registration filing.  If Soverain is successful in getting an injunction against Newegg, the company may be forced to "stop or alter certain of our business activities."

In the future, Circuit City -- although its physical stores went bankrupt, a liquidator purchased the company's online business and keeps it running -- will lead the charge of online businesses that aim to derail Newegg.

The IPO will be handled by Citi, JP Morgan, and the Bank of America, with Newegg's largest shareholder, Insight Venture Partners, also completing another IPO earlier in the year.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: mixed feelings
By bighairycamel on 9/28/2009 6:39:54 PM , Rating: 3
I'm with you. With new pressure to increase profit margins year after year, I just hope their executives are creative enough to think of ways to stimulate growth rather than just raise prices, raise prices, raise prices.


RE: mixed feelings
By ExarKun333 on 9/29/2009 8:57:45 AM , Rating: 2
Yeah, because making a profit year after year isn't good enough for some reason. Profit margin doesn't have to increase year after year if you are making good money. Shareholders can go to h@ll...


RE: mixed feelings
By TomZ on 9/29/2009 9:00:43 AM , Rating: 2
The profit margin % doesn't have to grow - just the absolute (total) profit has to grow. So if they are growing their sales revenue and holding profit margins, that will make investors happy.


"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki