ROCHESTER, N.Y. – Harris Interactive Inc., an Internet research company, went public December 7, offering 5.8 million shares at $14 apiece. The company’s stock priced at the top of its $12 to $14 filing range.
Lehman Brothers Holdings Inc., U.S. Bancorp Piper Jaffray, Volpe Brown Whelan & Co., E*OFFERING Corp. and Fidelity Capital Markets underwrote the initial public offering, which left 31.2 million shares outstanding.
There were no selling shareholders. Brinson Partners Inc. and Young & Rubicam Inc. were venture backers.
Known for its Harris Poll, the company uses direct mail, telephone surveys, focus groups and proprietary technologies to poll the public on its views, attitudes, trends and experiences. The company’s Internet polling panel consists of about 4.2 million individuals who have consented to participating in the company’s polling activities.
The $74.8 million in proceeds expected from the IPO will be used for working capital and for general corporate purposes, including the expansion of the company’s Internet panel and the development of new technologies, products and services. A portion of the proceeds may be used for the possible acquisitions or investments in complementary businesses.
Harris Interactive had been profitable until 1998, when it lost $1.9 million. The company lost $8.8 million in 1999.
No venture backers joined the company’s board of directors to date.
Harris Interactive – Selected Financial
(in thousands, except per share data)
Year Ended June 30 Three Months Ended September 30
1995 1996 1997 1998 1999 1998* 1999*
Total revenue 10.9 14.6 23.3 26.3 29 6.5 9.4
Net income (loss) 337 388 728 -1.9 -8.8 -974 -3.8
Net income (loss) per share 0.03 0.03 -0.06 -0.16 -1.01 -0.13 -0.38