| | Shutterfly founded in 1999
Shutterfly Inc. (SFLY : 16.15, +1.15, +7.7% ) priced 5.8 million shares at $15 a share in a bid to raise $87 million. The company's shares opened at $15.50 a share and rose to $16.03 in recent trades.
The Redwood City, Calif. firm priced at the top of its $13-$15 range with underwriters J.P. Morgan, Piper Jaffray and Jefferies.
With 23.6 million shares outstanding in the IPO, Shutterfly is going public with a market cap of about $354 million, or about 4.2 times its 2005 revenue.
A dot-com photo service launched in the Internet bubble year of 1999, filed to go public after turning a profit for the last three years.
Shutterfly's 2005 profit rose to $28.9 million on $84 million in revenue, compared to a profit of $3.7 million on revenue of $55 million in 2004. It also posted profits in fiscal 2003. For the first six months of the year, the company reported a net loss of $3.7 million and revenue of $36.5 million, compared to a loss of $1.3 million and revenue of $27.27 million in the year-ago-period.
Netscape co-founder Jim Clark owns about 30% of the company after the IPO. Venture firms Mohr, Davidow Ventures and Sutter Hill Ventures own 17% and 7% respectively.
Shutterfly generates revenue primarily from printing and shipping photo prints and products, such as photo books, cards and calendars, and merchandise such as mugs, mouse pads and magnets.
Over the past seven years, the company has taken more than 11 million orders, sold about 350 million prints and stored more than 900 million photos in its image archives.
The company sees growth in the online photo category with the wider use of digital cameras, penetration of high-speed Internet connectivity and participation in online communities.
The company bills itself as an Internet-based social expression and personal publishing service.
Steve Gelsi is a reporter for MarketWatch in New York.
marketwatch.com |
|
