AuthenTec Prices IPO (AUTH)

AuthenTec (AUTH-NASDAQ) priced its 7.5M share IPO at $11.00, at the top of the $9.00 to $11.00.  Lehman Brothers was the lead manager, with co-managers listed as Bear Stearns, Montgomery & Co., Cowen & Co., and Raymond James. The company is offering 5,625,000 shares of our common stock and the selling stockholders are offering 1,875,000 shares of common stock.

Authentec is a Florida-based fabless biometric company that designs fingerprint authentication sensors for PC’s and mobile devices. The company shipped 6.9 million sensors in 2006 and revenue increased from $19.2 million in 2005 to $33.2 million in 2006.  During the three months ended March 30, 2007, it shipped 1.9 million sensor units and generated revenue of $9.3 million, an increase of 32.0% and 25.7%, respectively, over the three months ended March 31, 2006.

The company claims more than 100 customers including ASUSTek Computer, Inc., Fujitsu Ltd., Hewlett-Packard Company, High Tech Computer Corp., Hitachi, Ltd., Lenovo Group Limited, LG Electronics Inc., Samsung Electronics Co., Ltd. and Toshiba Corporation. In 2006, AuthenTec derived 59% of revenue from two customers, and 80.7% and 83.9% of revenues from its top five customers in 2006 and the three months ended March 30, 2007, respectively.

More can be found on the company web site

Jon C. Ogg
June 27, 2007

Jon Ogg can be reached at; he does not own securities in the companies he covers.