SUNNYVALE, Calif. – Vitria Technology Inc., a provider of e-business infrastructure software, went public September 17, offering 3 million shares at $16 apiece. The company’s stock priced above its $13 to $15 filing range.
Underwritten by Credit Suisse First Boston, Merrill Lynch & Co., BancBoston Robertson Stephens and SoundView Technology Group, the initial public offering left 30.3 million shares of stock outstanding.
There were no selling shareholders. Venture backers included Skeen/Chang Investments, Brentwood Venture Capital, Sutter Hill Ventures and Weston Presidio Capital.
Vitria Technology, through its product BusinessWare, enables incompatible information technology systems to exchange information over corporate networks and the Internet.
The expected $44.6 million generated from the IPO will be used for additional working capital and for general corporate purposes including increased research and development, sales and marketing, and administrative expenditures. The company also may use a portion of the proceeds to acquire additional businesses, products and technologies, lease additional facilities or establish joint ventures that complement its business.
Vitria Technology has not been profitable since earning $243,000 in 1996. The company lost $580,000 in 1997 and $9.6 million in 1998.
John Walecka, a general partner at Brentwood Associates, and William Younger, Jr., a managing director and a general partner at Sutter Hill Ventures, both joined the company’s board of directors in 1997.
Vitria Technology – Selected Financial
(in thousands, except per share data)
Year Ended December 31 Six Months Ended June 30
1996 1997 1998 1998 1999
Total revenue 2,026 3,635 7,627 1,714 11,508
Net income 243 -580 -9,569 -4,259 -6,011
Net income per share 0.03 -0.06 -0.8 -0.4 -0.6