Silknet Software Inc. –

MANCHESTER, N.H. – Silknet Software Inc., a provider of online marketing, sales, e-commerce and customer services, went public May 5. The company offered 3 million shares of common stock at $15, well above its $10 to $12 filing range.

Venture backers include CMG @ Ventures, Zero Stage Capital, BancBoston Ventures Inc., Vertex Management, Intel Corp., JAFCO America Ventures Inc., the Goldman Group, KPMG L.L.P. and Cambridge Technology Capital Fund.

Credit Suisse First Boston, BancBoston Robertson Stephens, Banc of America Securities and First Union Capital Markets Corp. underwrote the offering, which left 14.9 million shares outstanding.

Silknet, incorporated in New Hampshire in1995 and re-incorporated this year in Delaware, allows companies to interact with customers through a single Web site by combining Internet, e-mail and telephone service. Bank of America,, 3M Corp., Microsoft Corp. and Sprint Corp. are Silknet customers.

Proceeds, worth $45 million, will be used for general corporate purposes.

Guy Bradley, general partner of CMG @ Ventures, and Stanley Fung, managing director of Zero Stage Capital, joined the company’s board in October 1996, followed a year later by John Doggett, vice president of BancBoston Ventures. Joo Hock Chua, vice president and assistant general manager of Vertex, became the company’s director in October 1998, followed in February by Andrew Goldfarb, managing principal of JAFCO America Ventures.

Silknet Software – Selected Financial

(in thousands, except per share data )

Year Ended June 30, Nine Months Ended March 31,

1996 1997 1998 1998 (unaudited) 1999

Total revenue 266 194 3,647 2,094 9,161

Net loss -465 -2,753 -6,003 -4,173 -6,115

Net loss per share -0.18 -1.15 -2.69 -1.85 -2.82