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Codex Corp. - Lehman Brothers Collection

Codex Corp.

List of Deals

Codex Corporation, located in Newton, Massachussetts, was incorporated in Delaware in July 1962.

Codex was a technological innovator in modems. In the late 1960s it was the first company to mass-market high-speed modems and later became the first to sell modems based on more sophisticated large-scale integrated circuitry. In the early 1970s Codex held 20 percent of this $200 million market, half of which was controlled by American Telephone & Telegraph.

Codex went public with 135,000 shares in late 1968. It sold the stock with the intention of using the proceeds to retire its short-term debt and bolster working capital.

In 1970 Codex fell on hard times as the company lost most of its military electronics business on which it relied heavily. In that same year it lost two of its top officers and founders when they died within months of each other, and the company had sales of $1.1 million yet had lost over $2.9 million. Sales more than doubled in 1971, to $2.5 million, but losses continued, albeit less, at $1.9 million.

In 1972 Codex sold 200,000 shares in a secondary offering of stock in order to reduce bank debt and increase working capital.

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