SonicWALL Inc. –

SANTA CLARA, Calif. – Network security device provider SonicWALL Inc. went public November 11, offering 4 million shares at $14 apiece. The company’s stock priced at the top of its $12 to $14 filing range.

Bear, Sterns & Co. Inc., Hambrecht & Quist and Thomas Weisel Partners L.L.C. underwrote the initial public offering, which left 23.7 million shares outstanding.

Bay Management Co. was a venture backer. There were no selling shareholders.

The company designs, develops, manufactures and sells infrastructure security products aimed at providing secure Internet access to its broadband consumers. The SonicWALL family of network security devices protects network communications between headquarters and branch offices or telecommuters and controls user access to Internet sites, such as adult sites from a university network.

The $50.9 million in proceeds expected from the IPO will be used for general corporate purposes, including working capital. In addition, the company might use a portion of the proceeds for the possible acquisition of complementary businesses, products or technologies.

SonicWALL lost $467,000 in 1997 and $1.5 million in 1998.

Robert Williams, a general partner at Bay Management, joined the company’s board of directors in May.

SonicWALL – Selected Financial

(in thousands, except per share data)

Nine Months Ended

Year Ended December 31 September 30

1996 1997 1998 1998* 1999*

Total revenue 9,356 9,342 7,515 5,380 12,151

Net income (loss) -32 -467 -1,461 -1,109 11

Net income (loss) per share -0.06 -0.13 -0.11