Force10 Networks plans $100 million IPO

<p>Force10 Networks, which develops broadband technology in Petaluma, has dropped its plan for a $144 million stock sale, saying it will now seek $100 million in an initial public offering.</p><p>The date of the sale and share price haven't been set.</p><p>Force10 announced plans in March 2010 to go public with the $144 million offering. But in an amended filing with U.S. securities regulators last week, the San Jose-based company scaled back the amount to $100 million.</p><p>The company said it will use some of the proceeds to pay off a $24 million loan. The rest would be used for working capital and other corporate purposes, including acquisitions, it said.</p><p>Force10 applied to list on the New York Stock Exchange under the symbol FCTN.</p><p>While technology IPOs are on the rise, pricing has been tepid for all but the hottest companies, according to market analysts.</p><p>Force10 began in 1999 as Turin Networks, a Petaluma-based, venture-backed tech company that focused on broadband transport and access systems. In 2009, Turin acquired Force10 and moved its corporate headquarters to San Jose.</p><p>The new company, called Force10 Networks, added Ethernet switching and routing products to the Turin portfolio. Force10 kept Turin's research and development center in Petaluma, where there were about 100 employees last year.</p><p>The company also has a research and development center in Chennai, India. </p><p>Force10 is led by Henry Wasik, former Turin CEO and a former Alcatel vice president. Its customers include telecommunications service providers, high-performance data centers and enterprise networks.</p><p>The company has struggled to reach profitability, losing $25.3 million on $93.7 million in revenue for the six months ending March 31, according to its filing.</p><p>Force10 is the second technology company with a Sonoma County connection to file for an IPO since late 2009. Petaluma-based Calix Networks went public in March 2010 with an $82 million stock sale.</p>