Had no idea Danger was in the hole $7.2 million. Most of us know Danger through the T-Mobile Sidekick brand, which utilizes the Palo Alto-based company’s software-as-service for data and Internet, but they make a few extra bucks for themselves in Europe and OZ with the hiptop brand. At the end of their fiscal year on September 30, Danger reported a loss of $28 million. The previous year’s loss was $21 million despite an increase in revenue to the tune of $56 million, which eclipsed the previous year by $7 million.
With that much debt, which isn’t too bad, Danger is looking to raise a bit of working capital with an IPO that Reuters is reporting to be in the ballpark of $100 million. With the popularity of the Sidekick/Hiptop device, I figured they were making enough off of T-Mobile, Motorola and Sharp, but I guess not. It sort of makes sense considering that most start ups lean on private funding to keep them going. I wonder how much it will go for.
Sidekick maker Danger to go IPO route [RCR Wireless News]