NetIQ Corp. Files $46 Mln Initial Public Offering
netiq.com
Washington, May 27 (Bloomberg) -- NetIQ Corp., which makes software for monitoring the performance of Microsoft Corp. operating systems in corporate computer networks, filed for an initial public offering that could raise as much as $46 million.
The Santa Clara, California-based firm's AppManager brand software is used for monitoring Windows NT systems by more than 375 corporate customers, according to the company's IPO filing with the Securities and Exchange Commission. Customers named in the filing include AT&T Corp.; Dell Computer Corp.; General Electric Co.; the Nasdaq Stock Market; and the U.S. Department of Veterans Affairs. ''Our objective is to be the leading provider of performance and availability management software for Windows NT-based systems and applications,'' the filing said.
The company's competitors include BMC Software Inc.; IBM Corp.; Computer Associates International Inc.; and Hewlett- Packard Co.
Ching-Fa Hwang, 50, is NetIQ's president and chief executive officer. Hwang worked previously as vice president of research at Compuware Corp. a developer of information systems software. He holds a 17 percent stake in the company before the IPO.
Hwang founded NetIQ in 1995 with vice president Her-Daw Che, 50, who also worked previously at Compuware. Che holds a 9.5 percent stake in NetIQ before the IPO..
Compuware sued NetIQ in 1996 alleging misappropriation of trade secrets and copyright infringement. The suit was settled in January and the claims were dismissed in March, the IPO filing said. As part of the settlement, Compuware was required to loan NetIQ $5 million.
NetIQ said it will use proceeds from the IPO to repay the Compuware debt and for working capital, capital expenditures, and potential strategic investments or acquisitions.
The filing warned that NetIQ has a history of losses and that it expects to lose more money. As of March 31, the company had an accumulated deficit of $6.8 million, the filing said.
NetIQ reported a loss of $501,000 against revenue of $15.1 million in the nine months ending March 31. It reported a loss of $2.8 million against revenue of $3.4 million for the same period a year before.
The company didn't say the number or price of its common shares in the IPO. The $46 million estimated top value for the offering was provided only as basis for calculated the SEC filing fee.
The firm hired Credit Suisse First Boston Corp. to underwrite the sale with BancBoston Robertson Stephens & Co., and Hambrecht & Quist Inc. NetIQ plans to have the shares listed for trading on the Nasdaq Stock Market under the symbol NTIQ, the filing said. |
