Lossy Adesto preps IPO
The company has priced the shares at $12 with plans to sell 4.7 million of them, according to the Security Exchange Commission filing. Although the company has been making financial losses in recent years it appears to think it can appeal to investors on the strength of its design-win pipeline.
Adesto was founded in 2006 by Narbeh Derhacobian with plans to develop a non-volatile memory based on the movement of copper ions in a programmable metallization cell. The technology was licensed from Axon Technologies Corp., a spinoff of Arizona State University.
The company was one of the only ones, out of a slew of competitors, to bring a resistive RAM to market but the company has struggled to find applications for its technology and back in 2012 the company appeared to take a sideways step when it announced the acquisition of Atmel’s Serial Flash product families based on EEPROM non-volatile memory technology.
Adesto made a net loss of $4.0 million on revenues of $20.3 million in the first half of 2015. This compares with a net loss of $5.2 million on revenue of $20.1 million in the first half of 2014. The company made a net loss for the whole of 2014 of $8.9 million on revenues of $41.5 million and that followed a net loss of $8.2 million in 2013 on revenues of $49.7 million. This is all according to its S-1 filing with the SEC.
However, while Adesto has been consistently loss-making and has even seen sales decline year-on-year its design wins are going in right direction.
The same S-1 form states that design wins have gone from 32 in 2013 to 65 in 2014 and then leaped to 88 in the first six months of 2015.
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