The Eden Prairie, Minn., company, which filed a preliminary prospectus with the Securities and Exchange Commission in July, also granted the underwriters the option to buy up to an additional 900,000 shares to cover any overallotments.

Assuming an offering price of $11 per share, Compellent estimates net proceeds of about $59.4 million, or $68.6 million if the underwriters exercise their overallotment option in full.

Compellent plans to use the proceeds for sales and marketing and research and development activities, as well as for general corporate purposes. The company said it may also use a portion of the proceeds for possible acquisitions of, or investments in, other businesses, products or technologies.

Compellent provides network storage solutions that enable users to store, recover and manage large amounts of data. As of June 30, the company's storage solution was being used by more than 550 companies worldwide.

For the six months ended June 30, Compellent reported a loss of $4.1 million, compared with a loss of $3.4 million the year-ago period. Revenue for the first half of 2007 was $20.9 million, more than double the $9.5 million in revenue the company reported for the first six months of 2006.

Morgan Stanley, Needham & Co. LLC, Piper Jaffray, RBC Capital Markets and Thomas Weisel Partners LLC are listed as the underwriters for the offering.

Compellent plans to list its shares on the New York Stock Exchange Arca under the symbol "CML."