The stock market correction that began in January claimed another victim this week: the long-awaited debut of LSI Logic spinoff Engenio Information Technologies. LSI Logic Storage Systems was renamed Engenio in May in preparation for the IPO, which was expected to be completed mid-year. Engenio would have traded on the NYSE under the symbol “NGE.” […]
The stock market correction that began in January claimed another victim this week: the long-awaited debut of LSI Logic
spinoff Engenio Information Technologies.LSI Logic Storage Systems was renamed Engenio in May in preparation for the IPO, which was expected to be completed mid-year. Engenio would have traded on the NYSE under the symbol “NGE.”
But Engenio and LSI announced late Thursday that the IPO will be postponed.
“Engenio Information Technologies, Inc. and LSI Logic Corporation today announced the postponement of Engenio’s Initial Public Offering (IPO) of its common stock due to present market conditions,” the companies said in a statement. “Engenio intends to evaluate market conditions for a more appropriate time.”
The storage sector has suffered along with the Nasdaq, which has lost 12.5% since peaking in January. The sector has been hit hard by pricing pressures and earnings that have failed to live up to Wall Street’s expectations.
In June, Xyratex
became the first storage company to go public since Seagatereturned to the public markets in December 2002, but Xyratex priced below expectations at $14 a share, and is currently trading around $9 a share, about 35% below its offering price.Engenio had hoped to raise $102 million in the offering, according to a recent SEC filing, pricing 12.5 million shares between $8-$10 a share. The company’s revenues grew 13% year-over-year to $113.3 million in the second quarter. However, that was a 2% sequential decline from the first quarter, which the company said was due to the timing of two large orders from the Teradata division of NCR. Net income declined from $5.2 million, or 10 cents a share, in the second quarter of 2003, to $4.6 million, or 9 cents a share, in the second quarter of 2004, as the company absorbed $1 million in expenses for its spinoff and IPO. IBM
accounted for 54% of Engenio’s revenues in the second quarter of 2004, up from 50% in the second quarter of 2003.
eSecurity Editor Paul Shread has covered nearly every aspect of enterprise technology in his 20+ years in IT journalism, including an award-winning series on software-defined data centers. He wrote a column on small business technology for Time.com, and covered financial markets for 10 years, from the dot-com boom and bust to the 2007-2009 financial crisis. He holds a market analyst certification.
Enterprise Storage Forum offers practical information on data storage and protection from several different perspectives: hardware, software, on-premises services and cloud services. It also includes storage security and deep looks into various storage technologies, including object storage and modern parallel file systems. ESF is an ideal website for enterprise storage admins, CTOs and storage architects to reference in order to stay informed about the latest products, services and trends in the storage industry.
Property of TechnologyAdvice. © 2025 TechnologyAdvice. All Rights Reserved
Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.
