SciQuest Prices IPO at Low End of Range

| About: SciQuest, Inc. (SQI)
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SciQuest (NASDAQ:SQI), an demand strategic procurement and supplier enablement solution provider, priced IPO at $9.50, at low end of its expected range.

Business Overview (from prospectus)

SciQuest provides a leading on-demand strategic procurement and supplier enablement solution that integrates customers with their suppliers to improve procurement of indirect goods and services. Our on-demand software enables organizations to realize the benefits of strategic procurement by identifying and establishing contracts with preferred suppliers, driving spend to those contracts and promoting process efficiencies through electronic transactions. Using our managed SciQuest Supplier Network, our customers do business with more than 30,000 unique suppliers and spend billions of dollars annually.

Offering: 6 million shares at $9 per share (expected range of $9.50 to $11.50). Net proceeds of approximately $36.2 million will be used to redeem preferred stock.

Lead Underwriters: Stifel Nicolaus Weisel (NYSE:SF)

Financial Highlights:

Revenues for the six months ended June 30, 2010 were $20.7 million, an increase of 19% over revenues of $17.4 million for the six months ended June 30, 2009... Cost of revenues for the six months ended June 30, 2010 was $4.4 million, an increase of 19%, over cost of revenues of $3.7 million for the six months ended June 30, 2009...Research and development expenses for the six months ended June 30, 2010 were $3.9 million, a decrease of 11% from research and development expenses of $4.4 million for the six months ended June 30, 2009...Sales and marketing expenses for the six months ended June 30, 2010 were $6.0 million, an increase of 13% over sales and marketing expenses of $5.3 million for the six months ended June 30, 2009...Income from operations for the six months ended June 30, 2010 was $3.6 million, an increase of 112% over income from operations of $1.7 million for the six months ended June 30, 2009...Net income for the six months ended June 30, 2010 was $3.2 million an increase of 84% over net income of $1.7 million for the six months ended June 30, 2009...

Competitors

The market for strategic procurement and supplier enablement solutions is competitive, rapidly evolving and subject to changes in technology. We compete with a number of procurement software vendors, large software application providers and group purchasing organizations. Our current principal competitors are Ariba (NASDAQ:ARBA)(across all of our vertical markets other than healthcare), GHX (healthcare only), large enterprise application providers that we believe have limited procurement functionality, such as Oracle (NYSE:ORCL) and SAP (NYSE:SAP), smaller market-specific vendors, and internally developed and maintained solutions.

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