BlueArc, joins money-losing network storage companies hoping for IPO

BlueArc Corp., a San Jose, Calif., maker of network storage systems, has filed an initial public offering to raise up to $103.5 million .

This is just the latest Silicon Valley network storage company to try to go public while still in the red. The company has worked away for eight years, but still lost a net $2.5 million in the three months ending April 30, down from $3.9 million for the same period a year ago. Its revenue more than doubled, but to modest (for an aspiring public company, at least) $15.3 million from $7.1 million, according to the filing. And with plenty of competitors, its difficult to tell where the company’s profit will come from.

3Par and OnStor are also trying to go public, despite losing money.
The company said Credit Suisse Securities and Lehman Brothers underwrite the offering, with help from RBC Capital Markets, Thomas Weisel Partners LLC and Pacific Crest Securities acting as co-managers.

BlueArc has raised a significant $200 million from numerous investors. They include Apax Partners Inc., Celtic House Venture Partners., Chevron Technology Ventures, Crosslink Capital, Dell Ventures, Fort Washington Investment Advisors, JPMorgan Partners, Meritech Capital Partners, Morgenthaler Ventures, myQube, New York State Retirement Co-Investment Fund, RWI Group, Wasatch Advisors and Weston Presidio Management Co.

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