NEW YORK – Predictive Systems Inc., a network consulting company, went public October 27, offering 4 million shares at $18 apiece. The stock priced well above its $12 to $14 filing range.
BancBoston Robertson Stephens, Bear, Stearns & Co. Inc., Donaldson, Lufkin & Jenrette Securities Corp. and First Union Capital Markets Corp. underwrote the offering, which left 22.6 million shares outstanding.
Cisco Systems Inc., General Atlantic Partners L.L.C. and Meyer Duffy & Associates were venture backers. There were no selling shareholders.
The company focuses on the design, performance, management and security of complex computing networks. It uses its proprietary consulting methodology, BusinessFirst, to translate its clients’ strategic business objectives into sound technology.
There are no specific plans for the use of the $65.5 million in proceeds expected from the offering.
Predictive Systems was profitable in 1996, when it earned $863,000 and in 1997 when it earned $1 million, but lost $627,000 in 1998.
Eric Meyer and Donald Duffy, partners at Meyer Duffy, joined the company’s board of directors in February 1995. Peter Bloom, a managing partner at General Atlantic and Braden Kelly, an associate at General Atlantic followed in June.
Predictive Systems – Selected Financial
(in thousands, except per share data)
Year Ended December 31, Six Months Ended June 30,
1996 1997 1998 1998* 1999*
Total revenue 8,106 18,087 25,923 9,465 22,566
Total income (loss) 863 1,011 -627 -737 -183
Total income (loss) per share 0.2 0.22 -0.11 -0.16 -0.02