NEWPORT BEACH, Calif. – Quest Software Inc., a provider of software solutions to enhance the performance and reliability of an organization’s e-business, enterprise and custom applications and information delivery, went public August 13, offering 4.4 million shares at $14 apiece. The company’s stock priced at the high end of its $12 to $14 filing range.
Underwritten by BancBoston Robertson Stephens, Donaldson Lufkin & Jenrette, CIBC World Markets and FAC/Equities, the initial public offering left 38.1million shares of stock outstanding.
Venture investors included InSight Capital Partners and UBS Capital. There were no selling shareholders.
The company’s family of products helps clients use information and technology more effectively because they are designed to work individually or interchangeably to provide immediate and continuous availability of applications and information.
The company plans to use the expected $56.3 million generated in the IPO to redeem shares of outstanding stock, repay debt and for other general corporate purposes, including working capital, expanding sales and marketing efforts, product development, customer support and for possible acquisitions and capital expenditures.
The company has been profitable, earning $289,000 in 1997 and $2.3 million in 1998.
Jerry Murdock, Jr., a co-founder of InSight, joined the company’s board of directors in April.
Quest Software – Selected Financial
(in thousands, except per share data)
Year Ended December 31 Six Months Ended June 30
1994 1995 1996 1997 1998 1998 1999
Total revenue 5,686 9,524 12,862 18,315 34,790 14,035 28,289
Net income 17 2,358 16 289 2,346 899 1,314
Net income per share 0.12 0.01 0.05 0.02 0.03