DVD software maker InterVideo went public on Thursday as investors cheered the new issues arrival with a 30-percent jump its market value.
The Fremont, California-based company raised $39.2 million for the initial
public offering, which was underwritten by SG Cowen and Soundview Technology Group. But based on its opening day of trading, it looks like the company could have raised even more.
On Wednesday, the company decided to jack up the number of
shares to 2.8 million at $14 per share, which is an increase from its
planned offering of 2.3 million shares at between $11 and $13 per share. The
increase in the issuance of 500,00 shares, or more than 20 percent, is a
sign there will be healthy demand for InterVideo shares.
And sure enough, when the stock The planned sale of shares puts the company’s estimated market value to be InterVideo’s main software product is called WinDVD, which allows for users
According to the company’s financial records, InterVideo has steadily
In the first quarter of 2003, InterVideo said it posted net income of $1.6
While the company’s focus has been on sales of its WinDVD software, there
“Although we have historically derived nearly all of our revenue from
On July 9, InterVideo released WinDVD Creator Platinum 2, what it calls “an
InterVideo says its WinDVD Creator Platinum 2 guides users through video began trading Thursday morning, they immediately popped as much as $4 higher.
close to $174 million, based on the 12.4 million shares outstanding, according to the company’s IPO filing with the Securities and Exchange Commission.
to play DVD’s on their personal computers. The company has shipped more than
50 million copies of its WinDVD software, which is often bundled together by
PC hardware manufacturers, including the two leading players Hewlett-Packard and Dell Computer
.
increased revenues over the past few years from $15.4 million in 2000 to
$45.5 million in 2002. Last year, the company posted a net profit of $7.7
million in 2002.
million on revenue of $13.4 million. The company was founded back in 1998,
and considered going public last year, before pulling its offering. The
company currently employs 218 people.
are indications it plans to diversify into a number of new products.
WinDVD, in the future we expect to derive an increasing percentage of our
revenue from our integrated suite of DVD authoring, editing and recording
products for PCs and from sales of our software designed for CE devices,”
the company said in its IPO filing.
integrated software solution that eliminates the need to switch between
video editing, authoring and burning software programs, reduces wait times
and addresses consumer compatibility issues. Designed to take the confusion
and frustration out of movie-making, WinDVD Creator Platinum 2 provides a
single, user-friendly interface for capturing, editing, authoring and
burning videos to DVDs and CDs,” according to a company press release.
capture, editing, authoring and burning the video as a DVD (DVD+/-VR,
DVD-Video, miniDVD, VCD, SVCD, DivX, CD) movie. The company says WinDVD Creator Platinum 2 will be available by mid-July for a price of approximately $99.95 on its Web site and at software retail outlets by late summer.
