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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.



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RE: mixed feelings
By rs1 on 9/28/2009 9:30:15 PM , Rating: 2
Maybe they do it the same way Xotic PC does, by shipping the order first to an out-of-state warehouse, and then shipping from that warehouse to the customer.

quote:
For Sager Orders where the customer resides in California, Xotic PC will cover the added shipping expense to have your machine sent into our Nebraska facility to avoid California Taxes (by default). If a customer prefers to pay the California Tax, this can be set up by request.


RE: mixed feelings
By MadMan007 on 9/28/2009 10:38:20 PM , Rating: 3
Well that's an idea but I know they don't do that because I've ordered stuff from Amazon direct, not an associate store, and the return address is in my state but no sales tax. I'm not certain whether their warehouses are some sort of colocated distribution company where multiple companies fulfill orders, or maybe a company solely to fulfill Amazon orders but I know they don't do any shipping trickery.

I'm surprised that place you mentioned is willing to risk their business by doing that since they have facilities in California either way it sounds very shady.


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