REDWOOD SHORES, Calif. – Liberate Technologies, a software provider that allows access to Internet content and applications through devices other than personal computers, went public July 27, offering 6.25 million shares. The stock priced at $16 apiece, the high end of the company’s $14 to $16 filing range.
Credit Suisse First Boston, Hambrecht & Quist and Charles Schwab & Co. Inc. underwrote the initial public offering, which left 41.08 million shares outstanding.
Oracle Corp. and Netscape Communications Corp. were venture backers. There were no selling shareholders, but 813,802 shares were sold in a private placement.
Liberate’s software allows network operators, such as telecommunications companies, cable and satellite television operators, Internet service providers and information appliance manufacturers to provide consumers with access to Internet-based applications and services from anywhere at any time. Information appliances include set-top boxes, game consoles, smart phones and personal digital assistants.
The $103.3 million earned in the IPO and private placement will be used for general corporate purposes, including product development and expansion of sales, marketing and service capabilities.
The company has never been profitable since its inception in December 1995, losing $33.1 million in this fiscal year ended May 31.
Jeffrey Henley, an executive vice president and chief financial officer of Oracle, joined the company’s board of directors in May 1996, followed by Lawrence Ellison, founder and chief executive of Oracle, in August 1997.
Liberate Technologies – Selected Financial
(in thousands, except per share data)
December 1, 1995 (inception) Year Ended May 31,
to May 31, 1996 1997 1998 1999
Total revenue – 275 10,272 17,313
Net loss -3,279 -18,989 -94,391 -33,053
Net loss per share* -1.17
*Pro forma