Danger announced plans for an initial public offering, saying it plans to use the proceeds to repay in full outstanding amounts under its credit facilities, which totaled $7.2 million at the end of November. The company also said it plans to use any remaining proceeds for working capital and general corporate purposes such as expanding data centers and research and development.
Danger offers data services to carriers, such as T-Mobile, who resell them to customers. The company offers the data services behind T-Mobile's popular Sidekick devices, and also works with Sharp and Motorola to develop Danger handsets for the U.S. market.
The company reported losses of $28.1 million for the recently ended fiscal year, compared with $21 million for the year pervious. Henry Nothhaft, former chief executive of Endforce, an Internet protocol services software company, heads the company.
Terms of the IPO were not disclosed in the company's filing with the Securities and Exchange Commission. The company applied to list its shares on the Nasdaq Global Market under DNGR.
With the current economic climate, wireless operators face shrinking marketing budgets and reduced consumer spending.
Globally, the credit crunch is very much alive, and operators will be tightening their belts into the foreseeable future by putting off capital purchases.
