A lot of IPOs seem to have a management team that has recently joined their
company. As for Lexent Inc. their management comes equipped with years of
experience in the telecommunications industry.
Alf Hansen, President, CEO and Director, may have only joined Lexent in
February 2000, but he has over 30 years experience in the telecommunications
industry. Twenty-two of those years were working for AT&T. Kevin O’Kane,
COO and a Director, was hired at their inception and has over ten years
experience in the telecommunications industry. Last, but not least,
Jonathan Stern, EVP and CFO, has over 15 years experience in the
telecommunications industry.
The price range is $12-14, the lead underwriter is Credit Suisse First
Boston and the proposed ticker symbol is LXNT.
Lexent provides local telecommunications network services for competitive
local exchange carriers (CLECs), Internet service providers and carriers’
carriers. Basically, Lexent is able to design, deploy and upgrade local
telecommunications networks more quickly and efficiently than customers
could themselves. They also provide ongoing maintenance services for their
customers on a 24-hour a day, seven day a week basis.
In 1999 Lexent generated revenues of over $3 million for each of the
following customers: AT&T, Level 3 Communications, MCI Worldcom, Metromedia
Fiber Network, Network Access Solutions, Network Plus, Nextlink
Communications, Teligent, Winstar Communications. Lexents competition
though, includes big hitters Lucent Technologies and Nortel Networks.
The competition has not slowed down revenues. Revenues have gone from $53.7
million in 1997 to $150.9 million in 1999. Also, Lexent has shown a profit
of $2.2 million in 1997 to $9.3 million in 1999.
Lexent has been around since the late 1980s and they show no signs of fading
out. According to International Data Corporation, the market for broadband
fixed wireless access services in the United States alone is expected to
generate $7.4 billion in revenue by 2003. Expect Lexent to be earning their
share.
