Stock Drops for Irvine, Calif., Device Server Maker.(Knight Ridder/Tribune Business News)

Knight Ridder/Tribune Business News, August, 2000 by Farnsworth, Chris

Aug. 5--IRVINE, Calif.--Lantronix Inc. dropped 20 percent in its first day on the Nasdaq stock exchange despite substantially scaling back its initial public offering.

In June, Lantronix had hoped to raise as much as $123.8 million by selling 9 million shares to the public. Instead, on Friday, it dropped the offering to 6 million shares at $10 each in an effort to weather the market's volatility. It raised $54.1 million after investment bankers' fees.

But even $10 was too steep for investors once the shares began trading on Nasdaq. The stock fell as low as $7.56 before closing at $8.

Lantronix makes tiny computers called "device servers" that enable many machines to be accessed and managed over the Internet. The devices can be used in fire...

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