OAK RIDGE, Tenn. – Interactive Pictures Corp., a provider of interactive photography and immersive imaging for the Internet, held an initial public offering August 5. The company offered 4.2 million shares at $18 apiece, at the high end of its $16 to $18 filing range.
J.P. Morgan & Co., Hambrecht & Quist, Morgan Keegan & Co. Inc. and Stephens Inc., underwrote the initial public offering, which left 17 million shares outstanding.
Motorola Inc., MediaOne Interactive Services Inc., GE Capital Equity Investments Inc., Advance Publications Inc. and Liberty IP Inc. were venture backers. H. Lee Martin, a founder of the company, and Daniel Kuban, the company’s senior vice president, are selling shareholders, offering 300,000 and 50,000 shares, respectively.
Interactive Pictures sells its patented technology software to combine two 185 degree photographs which form a spherical image, allowing viewers to see the picture from a complete 360 degree perspective. The user can rotate the image on a personal computer screen, post it to a Web site or send it over e-mail.
The expected $63.7 million generated by the IPO will be used to expand sales and marketing activities, enhance research and development activities, make possible strategic acquisitions or investments and for working capital requirements.
The company has never been profitable, losing $5.6 million in 1997 and $13.2 million in 1998.
Doug Holmes, executive vice president-strategy and business development for MediaOne Group Inc., joined as a director in April 1998. Randall Battat, senior vice president and general manager of Motorola’s Internet and networking group, joined the board of directors in January.
Interactive Pictures – Selected Financial
(in thousands, except per share data)
Year Ended December 31 Three Months Ended March 31
1996 1997 1998 1998* 1999*
Total revenue 1,545 2,446 3,041 417 1,229
Net loss -1,194 -5,578 -13,225 -2,654 -3,712
Net loss per share -0.21 -0.89 -2.84 -0.42 -0.9