BOTHELL, Wash. – Data Critical Corp., a medical diagnostic data technology company, went public November 9, offering 3.5 million shares at $10 apiece. The company’s stock priced below its $11 to $13 filing range.
Donaldson, Lufkin & Jenrette Inc., U.S. Bancorp Piper Jaffray Inc., Warburg Dillon Read L.L.C. and DLJdirect Inc. underwrote the initial public offering, which left 9.8 million shares outstanding.
There were no selling shareholders. Venture backers included New Enterprise Associates, Oshkim Limited Partners L.P., Spencer Trask Holdings Inc., Apex Investment Partners, ML Oklahoma Venture Partners L.P., Acacia Venture Partners and South Pointe Venture Partners L.P.
The company manufactures and supports medical communication and information systems using wireless technologies and proprietary software, which provide access to health information, including patient vital signs and other diagnostic data. Its systems allow information retrieval from remote locations and are integrated through a wireless network, a personal computer or the Web.
The $31.7 million in proceeds expected from the IPO will be used for general corporate purposes, including working capital, capital expenditures and the possible acquisitions of complementary businesses, products or technologies.
Data Critical has never been profitable, losing $4 million in 1997 and $5.8 million in 1998.
George Middlemas, a managing partner at Apex, joined the company’s board of directors in February 1995, followed by Ronald Kase, a general partner at New Enterprise, who joined the board in March 1998.
Data Critical – Selected Financial
(in thousands, except per share data)
Year Ended December 31 Nine Months Ended September 30
1996 1997 1998 1998* 1999*
Total revenue 190 471 4,137 2,211 5,906
Net loss -2,004 -4,002 -5,822 -4,516 -3,780
Net loss per share -2.44 -4.28 -5.03 -3.65 -3.43