Cemax-Icon awaits rebound of IPO market

PACS software developer Cemax-Icon is laying plans to launch itslong-awaited initial public offering as soon as the IPO marketregains its footing. Executives with the Fremont, CA, companysay they should be able to launch the offering within five daysof getting the go-ahead from their investment advisors.

Cemax-Icon officials confirmed earlier this year that they werelaying plans for an IPO (SCAN 6/19/96). Their moves are beingclosely watched, as a public Cemax-Icon would give investors apure play on the promising PACS segment of medical imaging.

Cemax-Icon has put the finishing touches on the appropriate paperworkrequired by the Securities and Exchange Commission to issue theIPO, according to president and CEO Terry Ross. The company iswaiting for the IPO market to improve before going forward, whichmay happen by mid-September, he said.

Ross hopes to raise $22 million after expenses by issuing 2.8million shares on the NASDAQ exchange, priced between $8 and $10a share. The funds would be used for general corporate purposes.

Would-be investors might be attracted to Cemax-Icon by the company'sstrong revenue growth, which has risen at an annual rate of 40%in the past five years. Cemax-Icon expects to post sales of $26million this year, according to the offering's prospectus.

Cemax-Icon also has an impressive stable of OEM partners, withToshiba, Imation (formerly 3M), and Lucent Technologies (formerlyAT&T) accounting for about 45% of revenues. The vendor's backlogstands at a company record $11.5 million.

On the downside, Cemax-Icon has yet to turn a profit. The companyestimates that current operating funds, along with IPO proceeds,will be enough to fund operations at least through 1997, accordingto the prospectus.