For storage vendors, 2006 will be remembered as the year the sector returned to favor on Wall Street.
both successfully completed initial public offerings on Friday, bringing to four the number of storage companies that have gone public this year. Along with Riverbed
, the storage companies are the first to brave the public markets since Xyratex
went public in mid-2004.
Isilon was the biggest surprise of the bunch, posting a 78 percent gain in its debut, the third strongest IPO of the year in any sector, according to MarketWatch.com.
The clustered NAS vendor raised more than $100 million in its debut, thanks to its 240 percent sales growth in the first nine months of the year, but the company lost $15 million on $41.6 million in revenues and faces tough competition from the likes of EMC and NetApp.
Double-Take raised $51 million in its debut and its stock scored a 15 percent gain in its first day of trading. The backup and recovery specialist earned $5 million in the first nine months of the year, and sales were up 44 percent to $26.2 million.
One factor behind the storage sector’s resurgence on Wall Street is its steady growth, which has hovered around double-digits even as other technology sectors have faltered (see Another Solid Quarter for Storage).