SolarWinds (NYSE:SWI), an Austin-based provider of network management software, went public today and received a warm welcome from investors . After initially pricing at $12.50, the stock hovered around $14 at midday. Along with other successful IPO predecessors such as DigitalGlobe (NYSE:DGI) and Rosetta Stone (NYSE:RST), today's pricing makes it seem like the IPO markets are indeed beginning to thaw.
Business Overview (from prospectus)
We are a leading provider of powerful yet easy-to-use enterprise-class network management software designed by network professionals for network professionals. Our offerings range from individual software tools to more comprehensive software products, solve problems faced every day by network professionals and help to enable efficient and effective network management. All of our products are ready-to-use, featuring intuitive and easily customizable user interfaces and built-in workflows. Our products can be downloaded directly from our websites and installed and configured by our end-users in a matter of hours. We design our software to meet the requirements of networks and implementations of varying sizes and levels of complexity, ranging from a single device to over 100,000 installed devices.
Offering: 12 million shares at $10-$12 per share. Net proceeds of approximately $84.0 million will be used to repay a portion of the company's outstanding long-term indebtedness of $93.9 million. Portions of the net proceeds may also be used to acquire or license products, technologies or businesses and for general corporate purposes.
Lead Underwriters: J.P. Morgan, Goldman Sachs, Morgan Stanley
Revenue was $24.1 million for the three months ended March 31, 2009, compared to $20.4 million for the three months ended March 31, 2008, an increase of $3.7 million, or 18.0%... Cost of revenue was $1.1 million for the three months ended March 31, 2009 compared to $0.8 million for the three months ended March 31, 2008, an increase of $0.3 million, or 37.9%... Sales and marketing expenses were $6.7 million in the three months ended March 31, 2009 compared to $4.5 million in the three months ended March 31, 2008, an increase of $2.2 million, or 47.6%... Research and development expenses were $2.4 million in the three months ended March 31, 2009 compared to $1.9 million in the three months ended March 31, 2008, an increase of $0.5 million, or 26.4%.
We face competition from both traditional, larger software vendors offering enterprise-wide software frameworks and services and smaller companies offering point solutions for network management. We also compete with network equipment vendors and systems management product providers whose products and services also address network management requirements. Our principal competitors vary depending on the product we offer and include Hewlett Packard, IBM, CA, BMC, Cisco and several smaller vendors.
- Company website
- Online road show
- TheStreet.com: 'Solarwinds a Bright Spot in IPO Market"
- Blogging Stocks: 'SolarWinds: Headwinds or tailwinds for the IPO?'
- Daily Finance: 'SolarWinds IPO gets enthusiastic response from investors'
- Press Release: 'SolarWinds IPO Creates Opportunity for PacketTrap MSP'
- Eric Savitz: 'A Software IPO! SolarWinds Prices At $12.50 a Share'
- Bespoke Investment Group: '2009 IPOs Making Investors Money'