CUPERTINO, Calif. – Chordiant Software Inc., a producer of e-business infrastructure software, filed to go public December 6. The company placed the offering at $40.5 million and will offer 4.5 million shares, with a filing range of between $8 and $10 apiece.
Robertson Stephens & Co., Dain Rauscher Wessels and Thomas Weisel Partners LLC will underwrite the initial public offering, which is expected to leave 34.6 million shares outstanding.
There will be no selling shareholders. Venture backers include Foundation Capital, Orchid & Co., Battery Ventures, Electronic Data Systems Corp., Norwest Venture Capital, Charter Ventures, Vertex Investment and First Plaza Group Trust.
Chordiant’s Customer Communications Solution software enables clients to integrate information from internal and external sources and then manage customer relationships across Web, e-mail and telephone connections. The software allows clients to give personalized attention to their customers across various channels of communication.
The company expects $36.6 million to be generated from the IPO and plans to use proceeds for working capital and for general corporate purposes, including repayment of debt, professional services, research and development, sales and marketing, and for other capital expenditures.
Chordiant Software has never been profitable, losing $11.6 million in 1997 and $17.4 million in 1998.
Oliver Curme, a general partner at Battery, and Kathryn Gould, a manager at Foundation, both joined the company’s board of directors in July 1996.
Chordiant Software – Selected Financial
(in thousands, except per share data)
Year Ended December 31 Nine Months Ended September 30
1996 1997 1998 1998* 1999*
Total revenue 2,312 2,908 12,465 5,979 12,247
Net loss -7,562 -11,593 -17,440 -12,288 -15,436
Net loss per share -1.51 -2.31 -3.44 -2.44 -2.93