MCK Communications Inc. –

NEWTON, Mass. – MCK Communications Inc., a telecommuting services provider, went public October 22, offering 3.4 million shares at $16 apiece. The stock priced at the top of its $14 to $16 filing range.

Underwritten by BancBoston Robertson Stephens, Dain Rauscher Wessels and Hambrecht & Quist, the offering left 17.9 million shares outstanding.

Summit Partners Group and Lazard Freres Group were venture backers. There were no selling shareholders.

MCK Communications is a provider of products that give employees access to corporate voice systems and applications. These products enable corporations to extend the features and applications of large corporate telephone systems known as private branch exchanges, or PBXs, from the corporate office to remote branch offices and telecommuters over public and private networks.

The company expects the $49.5 million in proceeds from the offering to be used for a mandatory redemption payment with respect to its Series A, C and E redeemable preferred stock and to repay $2.5 million in principal of the subordinated debt held by certain of the holders of the Series A redeemable preferred stock. In addition, proceeds will be used for general corporate purposes, including working capital.

MCK Communications lost $1.1 million in 1998 and $784,000 the following year.

Gregory Avis, managing partner at Summit Partners, joined the company’s board of directors in May 1996, followed by Michael Balmuth, a general partner at Summit, in September 1997, and J. Robert Geiman, an associate at Summit, in January.

MCK Communications – Selected Financial

(in thousands, except per share data)

Years Ended April 30 Three Months Ended July 31

1995 1996 1997 1998 1999 1998* 1999*

Total revenue 1,810 5,339 5,921 7,876 14,270 3,116 4,523

Net income(loss) 121 1,032 -230 -1,113 -784 -193 -1,232

Net income(loss) per share 0.04 0.33 -0.39 -0.67 -0.71 -0.16 -0.41