Edify Corp.'s IPO Doubles On Opening
By SCOTT REEVES
Dow Jones News Services
NEW YORK -- Edify Corp.'s (EDFY) initial public offering doubled its offering price, underscoring the ongoing strength of software in the new issues market.
The company priced 2.5 million shares at $15 each through underwriters led by Goldman Sachs & Co. The stock opened at 31, rose to 34 1/2 and now trades at 33. Price talk was $10 to $12.
Edify, of Santa Clara, Calif., develops software that allows companies to provide automated services reached by customers, employees or business partners through the Internet, private intranets, Web browsers, telephones and electronic mail.
The company has licensed its software to more than 450 customers for telephone and electronic mail self-service applications such as bank account inquiries, employee benefit enrollments, inventory status and automatic shipment notification.
Steven Tuen, an analyst at IPO Value Monitor here, said Edify's software allows businesses to automate routine services and cut personnel costs.
''You can still use the software as your business grows,'' he said. ''Without it, you'd be hiring more people. Cost-cutting is big and I think investors are buying the concept.''
Tuen said Edify is developing a version of its software for Windows NT, which is likely to result in an explosion of sales. He said the current version is limited to the OS/2 operating system.
Edify said its major customers include AT&T Corp. (T), American Express Co. (AXP), Time Warner Inc. (TWX) and Unisys Corp. (UIS).
For the three months ended March 31, 1996, the company reported net revenue of $5.8 million and a loss of $567,000. For the same period last year, Edify reported net revenue of $2.7 million and a loss of $448,000, the preliminary prospectus said.
Edify said current and potential competitors include Internet software and tools vendors, Web application vendors and business application vendors. In the future, the company expects competition from Netscape Communications Corp. (NSCP) and Microsoft Corp. (MSFT) to increase. Database vendors such as Oracle Corp. (ORCL), Sybase Inc. (SYBS) and Informix Corp. (IFMX) may also enter the field.
Edify will have about 15.5 million shares outstanding after the IPO. Existing shreholders paid an average of $1.87 a share. |
