SUNNYVALE, Calif. – Network caching equipment provider CacheFlow Inc. went public November 19, offering 5 million shares at $24 apiece. The company’s stock priced well above its $18 to $20 filing range.
Morgan Stanley Dean Witter, Credit Suisse First Boston and Dain Rauscher Wessels underwrote the initial public offering, which left 32.6 million shares outstanding.
There were no selling shareholders. Benchmark Capital, U.S. Venture Partners and Technology Crossover Ventures were venture backers.
The company’s products store and update frequently requested Web sites so users can access them quickly from a cache rather than from an originating server. Company intranets and Internet service providers (ISPs) use CacheFlow’s appliances to increase efficiency, and e-commerce customers use them to speed response times and handle traffic surges.
The $109.9 million in proceeds expected from the IPO will be used for general corporate purposes, including working capital.
CacheFlow has never generated a profit, losing $5.5 million in 1998 and $13.2 million in 1999.
Andrew Rachleff, a general partner at Benchmark, joined the company’s board of directors in October 1997.
CacheFlow – Selected Financial
(in thousands, except per share data)
Year Ended April 30 Three Months Ended July 31
1998 1999 1998* 1999*
Total revenue 7,036 809 3,612
Net loss -5,507 -13,202 -2,302 -6,557
Net loss per share -1.43 -2.17 -0.47 -0.8