Cybersource Corp. –

SAN JOSE, Calif. – Cybersource Corp., a provider of real-time e-commerce transaction services, held an initial public offering June 23. The company offered 4 million shares at $11 apiece, at the high end of its $8 to $11 filing range.

Merrill Lynch & Co., J.P. Morgan & Co., PaineWebber Inc. and C.E. Unterberg, Towbin underwrote the IPO, which left 21.55 million shares outstanding.

There were no selling shareholders. Vulcan Ventures Inc., Global Retail Partners, General Electric Capital Corp. and C.E. Unterberg, Towbin were venture backers.

Cybersource offers online merchants with global payment processing, fraud prevention, tax calculation, export compliance, territory management, delivery address verification and fulfillment management. The company’s services allow e-businesses to focus on marketing, Web site content, merchandising and customer support, speeding their time to market, reducing overall operating costs and processing orders in local currencies.

The $40.1 million earned in the IPO will be used to boost sales, marketing and product development, as well as other general corporate purposes.

The company has never been profitable since its inception in 1996, losing $10.1 million in 1998 and $4.3 million in 1997.

Bert Kolde, vice president, treasurer and secretary of Vulcan Ventures, Linda Fayne Levinson, a principal of Global Retail Partners, and Steven Novak, a managing director of C.E. Unterberg, Towbin’s Internet Practice, joined the company’s board of directors in December 1997.


Cybesource – Selected Financial

(in thousands, except per share data)

Period from March 20, 1996

(inception) Year Ended December 31, Three Months Ended March 31,

to December 31, 1996 1997 1998 1998 1999

Revenue 144 968 3,384 639 1,713

Net loss -1,143 -4,338 -10,085 -1,824 -4,190

Net loss per share -2.05 -0.4 -0.77