Fortinet, a profitable network security appliance vendor backed by Redpoint Ventures and Meritech Capital, filed for an IPO Monday morning. This is an encouraging development as it represents the first US venture-backed company to submit an IPO filing in more than six months. Fortinet had been on our radar screen as a possible IPO contender given its size, product momentum and rumored profitability. Over the last 12 months, Fortinet generated $229 million in revenue and $18 million in operating income. We highlight Fortinet's S-1 filing as significant because we believe it represents the start of what we expect to be a number of quality IPO filings in the coming months.
On a more general note, filing activity has broadened over the last three weeks to include companies from more traditional IPO sectors as well as those more typical of an economic recovery. In addition to Fortinet, notable new filings include global hospitality company Hyatt Hotels (H), online community portal Ancestry.com (ACOM), North American railroad operator RailAmerica (RA), specialty retailer Vitamin Shoppe (VSI) and home-based skilled nursing provider Addus HomeCare (ADUS).
