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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 burpnrun on 9/28/2009 9:40:49 PM , Rating: 2
Note that there is NO mention in the release that they will actually open a Canadian distribution centre. Their shipping costs from the U.S. warehouses are still exorbitant, Also, it's always much cheaper to price-match with NCIX to get the same price if NE is lower (increasingly less so), there's no PST if one is outside NCIX's BC distribution point, and the goods arrive much sooner from NCIX.

BUY CANADIAN. NewEgg is US. Turn the tables on them!

RE: mixed feelings
By Gannon on 9/29/2009 4:46:32 AM , Rating: 2
Newegg is irrelevant to those of us who know about NCIX.

I've never found bettter prices @ newegg, while newegg may have more selection of some items, newegg's prices still can't compete with NCIX, and where NCIX is more expensive, NCIX is almost ALWAYS willing to match prices of competitors.

RE: mixed feelings
By omnicronx on 9/29/2009 4:34:39 PM , Rating: 2
Ncix will pricematch pretty much anything on the Canadian Newegg site. As long as it is in stock that is.. I've pricematched a good 15 things since the Newegg site opened.

That being said, their prices have risen over the years, and I have found myself just going to one of the tigerdirect/canada computers retail stores in my area, as the money I was saving at Ncix was offset by the shipping costs.. The fact that I can go into the store and get the product I want right away is always appealing too..

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