IRVINE, Calif. – Continuus Software Corp., an Internet and asset management software developer, went public July 29, offering 2,523,642 shares. The stock priced at $8 apiece, the low end of the company’s $8 to $10 filing range.
U.S. Bancorp Piper Jaffray and CIBC World Markets underwrote the initial public offering, which left 13.04 million shares outstanding.
There were no selling shareholders. Norwest Venture Capital IV, Brentwood Associates VI, London Pacific Life & Annuity Co., Advanced Technology Venture III and Accel IV were venture backers.
Continuus’ software allows businesses to develop, enhance, deploy and manage their traditional software and Internet systems by automating various aspects of the software development process. Customers include the information technology departments of Fortune 500 businesses and government organizations, the engineering departments of independent software vendors, computer hardware retailers, defense and aerospace organizations, telecommunications equipment suppliers and transportation equipment manufacturers.
The $17.6 million earned in the offering will be used for general corporate purposes, including sales and marketing expenditures and product development. The company has not been profitable in the past several years, losing $3.9 million in 1998 and $1.6 million in 1997.
Kevin Hall, a general partner of Norwest, joined the company’s board of directors in 1994, followed by Brentwood’s Stewart Schuster in May 1997 and Barry Patmore in and April.
Continuous Software – Selected Financial
(in thousands, except per share data)
Year Ended December 31, Three Months Ended March 31,
1994 1995 1996 1997 1998 1998* 1999*
Total revenue 6,365 13,100 16,099 23,263 27,436 6,810 8,239
Net loss -5,030 -3,411 -6,053 -1,583 -3,866 -649 -239
Net loss per share -4.27 -2.34 -4.06 -1.00 -2.39 -0.40 -0.15