SilverStream Software Inc. –

BURLINGTON, Mass. – SilverStream Software Inc., a software provider, went public August 17, offering 3 million shares at $16 apiece. The company’s stock priced above its $13 to $15 filing range.

Underwritten by Morgan Stanley Dean Witter, BancBoston Robertson Stephens and SG Cowen, the initial public offering left 17.1 million shares outstanding.

Venture backers included Matrix Partners IV, North Bridge Venture Partners, and Funds affiliated with Essex Investment Management Co. There were no selling shareholders.

SilverStream provides businesses with software and services to create, deploy and manage software programs for intranets, extranets and the Internet. The company’s products can be applied to Web applications for e-commerce, employee self-service, supply chain management and customer service.

SilverStream will use the estimated $43.6 million in proceeds from the offering for working capital and capital expenditures. The company also will expand its sales and marketing, research and development, professional services and make improvements to its operational and financial systems. The proceeds will go toward general corporate purposes, including possible acquisitions that are complementary to its business.

The company has never been profitable, losing $8.3 million in 1997 and $12.9 million in 1998.

Timothy Barrows, a general partner of Matrix Partners, and Richard D’Amore, a general partner of North Bridge Venture Partners, both joined the company’s board of directors in July 1996.

SilverStream Software – Selected Financial

(in thousands, except per share data)

Period from May 8, 1996 (inception) Years Ended December 31 Six Months Ended June 30

to December 31, 1996 1997 1998 1998 1999

Total revenue 249 6,808 1,744 7,782

Net loss -952 -8,335 -12,885 -6,601 -9,342

Net loss per share -5.12 -10.61 -4.89 -2.83 -2.7