Internet IPO Volatility Continues as Vignette Postpones Offering
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Wall Street's love/hate relationship for Internet stocks showed its nasty side Thursday when Vignette Corp., makers of the StoryServer Web management system, filed to postpone its plans for an initial public offering.
The company's brief withdrawal request submitted to the U.S. Securities and Exchange Commission blamed the uncertainty of current market conditions.
In early October, Vignette filed plans with the SEC to raise about $30 million in an IPO, about five months after word first surfaced that the company wanted to go public. IPO speculation came shortly after Vignette hired Greg Peters in May as its new chief executive officer.
Like many Internet companies, Vignette planned to take itself public even though it was still losing money. The company reported losses of $7.5 million, or $1.19 a share, in 1997. Through the first half of 1998, Vignette's losses had climbed to $9.7 million, or $1.17 a share.
Part of Vignette's technology was developed by CNET Inc., publisher of several technology-related Web sites. CNET sold the technology to Vignette in 1996 in return for a stake in the company.
CNET and several other Web sites use Vignette's StoryServer.