CUPERTINO, Calif. – Packeteer Inc., a networking software developer, held an initial public offering July 27, offering 4 million shares at $15 apiece. The stock priced above the company’s $12 to $14 filing range.
BancBoston Robertson Stephens, Bear Stearns & Co. Inc. and Dain Rauscher Wessels underwrote the IPO, which left 26.15 million shares outstanding.
There were no selling shareholders. New Enterprise Associates, Enterprise Partners and Onset Enterprise Associates II were venture backers.
Packeteer’s software enhances mission-critical application performance over enterprise-wide area networks (WANs) and the Internet. The software provides businesses with better control of bandwidth at congested WAN access links, the bottlenecks that connect local area networks (LANs) with backbone networks.
The $54.8 million earned in the offering will be used for general corporate purposes, including the expansion of sales and marketing operations and research and development.
The company has never been profitable since its inception in January 1996, losing $8.8 million in 1998.
Peter Morris, a general partner of New Enterprise Associates, joined the company’s board of directors in September 1996, followed in July 1997 by William Stensrud, a general partner of Enterprise Partners.
Packeteer Group – Selected Financial
(in thousands, except per share data)
January 25, 1996 (inception) Six Months Ended
to December 31, Year Ended December 31, June 30,
1996 1997 1998 1998 1999
Total net revenue – 1,413 7,230 2,917 7,080
Net loss -1,237 -5,909 -8,799 -3,629 -5,723
Net loss per share -1.28 -1.82 -1.54 -0.72 -0.76