April 29, 2010 / 5:17 PM / in 9 years

Convio IPO trades up, Alpha and Omega slips

NEW YORK (Reuters) - Two tech company IPOs received a mixed reception on Thursday, as shares of Convio Inc CNVO.O rose while those of Alpha and Omega Semiconductor Ltd (AOSL.O) fell.

The shares of Convio, which sells marketing and management software to nonprofit organizations, closed 13.8 percent above their initial public offering price at $10.24. The shares of Alpha and Omega, which makes microchips for everything from notebook computers to mobile phone battery packs, closed down 1.7 percent at $17.70 after opening 0.6 percent above their issue price at $18.11.

“You can keep selling the same (software) code over and over again. On the hardware side, that stuff is obsolete. By the time it is released, there is already something better in development,” said Morningnotes.com founder Ben Holmes.

Holmes said Convio’s software business could grow much more cheaply and quickly than Alpha and Omega’s hardware business.

Convio’s total revenue rose about 11 percent to $63.1 million in 2009, and it lowered its net loss to $2.1 million from $3.7 million a year earlier.

Alpha and Omega’s loss attributable to equity holders narrowed to $542,000 from $26.8 million, while its revenue slipped 25.4 percent to $185.1 million in the year that ended June 30.

Austin, Texas-based Convio sold 5.13 million shares for $9 each and raised gross proceeds of $46.2 million on Wednesday. It had planned to sell the shares for $10 to $12 each.

This is Convio’s second IPO attempt. The first, filed in 2007, was withdrawn in August 2008. It filed again in January 2010.

Alpha and Omega, whose customers include Hewlett-Packard Co (HPQ.N), Asustek and Foxconn, sold 5.09 million shares for $18 each on Wednesday, raising about $91.6 million, with 3.4 million shares coming from the company and a further 1.69 million from shareholders.

The company had reduced the expected price range to $17 to $19 from $16 to $20 earlier in the month.

Convio’s underwriters were led by Thomas Weisel Partners and Piper Jaffray. Alpha and Omega’s underwriters were led by Deutsche Bank Securities and Piper Jaffray.

Reporting by Clare Baldwin; Editing by Andre Grenon and Steve Orlofsky

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