PALO ALTO, Calif. – E.piphany Inc., a provider of software that enables companies to monitor customer relationships, went public September 22, offering 4 million shares at $16 apiece. The company’s stock priced at the high end of its $14 to $16 filing range.
Underwritten by Credit Suisse First Boston, Hambrecht & Quist and Merrill Lynch & Co., the initial public offering left 25.1 million shares outstanding.
There were no selling shareholders. Venture backers included Kleiner Perkins Caufield & Byers and Information Technology Ventures (ITV).
E.piphany’s software provides companies with insight into their customers’ habits, characteristics and preferences. With such detailed information, E.piphany believes its clients can improve the longevity and profitability of customer relationships.
E.piphany plans to use the expected $36.3 million generated from the IPO for working capital, to create a public market for its common stock, to facilitate future access to public markets and for general corporate purposes. The company also might use a portion of the proceeds to acquire products, technologies or businesses that complement its business.
The company has never been profitable, losing $3.1 million in 1997 and $10.3 million in 1998.
Sam Lee, a co-founder and general partner at ITV, joined the company’s board of directors in March 1997. Douglas Mackenzie, a general partner at Kleiner Perkins, followed in January 1998.
E.piphany – Selected Financial
(in thousands, except per share data)
Year Ended December 31 Six Months Ended June 30
1997 1998 1998* 1999*
Total revenue 3,377 863 5,124
Net loss -3,149 -10,330 -3,893 -9,346
Net loss per share -2.9 -7.19 -1.82 -1.87