Vignette Corp. –

AUSTIN, Texas Vignette Corp., a provider of Internet relationship management software products and services, went public February 18, offering 4 million shares at $19 apiece. The stock priced above the company $15 to $17 filing range.

Morgan Stanley Dean Witter, Hambrecht & Quist and Dain Rauscher Wessels underwrote the initial public offering, which left 26.32 million shares outstanding.

Venture backers Austin Ventures, Sigma Partners III, CNET Inc., Adobe Ventures II and Charles River Partnership VIII were not among the two selling shareholders, who peddled 320,000 shares.

Vignette provides software that enables mid- to large-size enterprises to develop and manage online customer relationships to increase their Web-based revenue and market share. The company’s StoryServer 4 application platform integrates three capabilities that allow clients to engage their Web site visitors with personalized interactions that increase sales and strengthen customer loyalty. Vignette has more than 190 customers worldwide, including Bank One Corp., Charles Schwab & Co., Lands’ End Inc., National Semiconductor Corp., Nokia Corp. and Preview Travel Inc.

The company’s net proceeds from the sale of 3.68 million shares were approximately $64.1 million, which will be used for general corporate purposes.

Vignette has not been profitable in the past several years, losing $26.20 million in 1998 and $7.47 million in 1997.

Robert Davoli, a general partner of Sigma Partners, and John Thornton, a general partner of Austin Ventures, joined the company’s board of directors in February 1996.

Vignette Corp.

(in thousands, except per share data)

Year Ended December 31,

1996 1997 1998

Total revenue – 3,024 16,205

Net loss -3,626 -7,474 -26,197

Net loss per share* -1.46

*Pro forma