Cysive Inc, an internet services company that has developed e- commerce web sites for the likes of Cisco Systems Inc and US bank, First Union Corp, filed plans yesterday to stage a $32.7m initial public offering of shares. Reston, Virginia-based Cysive, which formerly operated under the name Alta Software, plans to offer 3.35 million shares priced between $11 and $13 each on the Nasdaq stock exchange, according to its pre-IPO filing with the Securities and Exchanges Commission.
The company will use the proceeds for capital investment and expanding its operations and sales and marketing efforts. It will not have access to proceeds from the sale of 350,000 of director Eric Magelby’s shares which are included in the overall offering.
Cysive, established in 1994, also develops data, financial workflow and supply chain management systems. It deploys what it describes as SWAT teams of software engineers on projects to minimize errors and screw down customer costs. Cysive built Cisco’s Internetworking Products Center, which it describes as the core of the networking giant’s e-commerce site, accounting for 60% of Cisco’s $12.2bn total revenues in the last fiscal year.
The company saw revenue of $9.4m for the six months to June 30, posting a net loss of $11.6m. The firm incurred about $13.3m costs from stock options for employees during the period. The IPO underwriters, Thomas Weisel Partners LLC, First Union Capital Markets Corp and Friedman Billings Ramsey have an extra 502,500 shares at their disposal to meet heavy demand. รก
