Portal Software Inc. –

CUPERTINO, Calif. – Portal Software Inc., a developer of customer management and billing software for providers of Internet-based services, went public May 5. The company offered 4 million shares at the offering price of $14 per share.

Accel Partners is a venture backer.

Goldman, Sachs & Co., Credit Suisse First Boston, BancBoston Robertson Stephens and Hambrecht & Quist underwrote the offering, which left 74.7 million shares outstanding.

Portal, founded in 1985, develops and markets software solutions that allow businesses to track online activity and to provide users with automated authorizations and immediate service activation. Customers include Concentric Network Corp., Juno Online Services Inc. and 3Com Corp’s. Palm.net.

The company has never paid dividends on its capital stock. Proceeds, worth an $56 million, will be used for general corporate purposes, including sales and marketing activities, product development, capital expenditures and repayment of debt.

Arthur Patterson, founder and general partner of Accel, joined the company’s board of directors in March 1996.

Portal Software – Selected Financial

(in thousands, except per share data )

Year Ended January 31,

1995 (unaudited) 1996 1997 1998 1999

Total revenue 1,517 1,862 5,045 9,416 26,669

Net loss -197 -535 -2,274 -7,587 -17,408

Net loss per share* -0.3

*Pro forma