Lanham-based Yurie Systems Inc. shares fell 5 percent yesterday after the company said it will release about 10 percent of 20.6 million "locked-up" shares that couldn't be sold by management, directors and shareholders.
Shares of the telecommunications switching-products maker fell 87.5 cents to $16.50 in trading of 317,600, more than the three-month daily average.
Yurie raised $48 million in its initial public offering in February. Securities and Exchange Commission regulations on initial public offering include a "lock-up" period during which insiders can't sell shares.
Yurie said the share release was effective yesterday and applies on a pro rata basis to the holdings of each "locked-up" stockholder, the company said. The shares are subject to agreements due to expire Aug. 4.
Yurie, founded by Jeong H. Kim, 36, a Johns Hopkins-trained engineer, markets products that connect existing phone networks to more modern, faster ones.
Yurie, which recently was named the top "hot growth" company in the country by Business Week, had earnings of $3.2 million in 1996 on revenue of $21.6 million.
Pub Date: 5/31/97
