Technology investors lately have turned a cold shoulder to the sector's grizzled graybeards, including CPQ, HWP and Dell. Yet they continue to kindle a lively roamce with infant Internet issues. Age discrimination, perhaps? For priceline.com, a youthful interner service provider based in Stamford, Connecticut, this is no time to fret about political correctness. Not while it's putting the finishing touches on a $115 million initial public offering, expected to price in late March via Morgan Stanley Dean Witter. The company which matches bargain-hunting buyers with sellers of discount airfares, hotel accommodations, cars and financial services, has yet to disclose the number of shares it will trade on Nasdaq under the ticker symbal PCLN. Amid a seeeming glut of prospective dot.com offerings - the quene has only lengthened since the smash debut of ebs.marketwatch.com in mid-January-priceline.com is likely to be a star. ora to quote the oft-intoned tagline of actor William Shatner, the company's spokesman, it's "going to be big, very big" No matter of course that revenue are small, very small, or that profits are nonexistent.
Lasr year, pricline.com lost $90.2 million or $1.41 per common share, on revenue of $35.2 million. some $39 million or 110% of revenue, however represented non-cash charges related to issuing warrants to certain participating airlines, chiefly Delta. other wxpenses included $24 million in sales and marketing, which is one of the company's strongest suits.
So what's the big attraction? priceline specializes in consumer-based e-commerce like stock-market supernovas ebay and amazon. The company is backed by a star-studded cast of high tech investors, including microsoft co-founder, CEO of IBM, General Atlantic Partners, Quantun Industrial Partners. Nancy Peretsman, a well-known investment banker, sits on the board along with Xerox chairman and the business author. The new company is the brainchild of entrepreneur Jay Walker. After the offering, Walker and CEO of former CITIcorp executive together will retain voting control.
Then there's Shatner who has been spreading the corporate message mellifluously in an aggressive radio ad campaign. evidently the news is getting through, according to the company's amended S-1 registration statement. after five months of operation, some 62.5 million or 32% of all adult americans "were aware of" priceline.coms's "name your price" shopping model, it says. |
