Called InSpec Validation Systems, the company was founded in 1996. But a
year later, the company changed its name to
Verisity and then by
late 1999, bought SureFire Verification.
Now, Verisity is a leading developer of verification technologies for
electronic systems and integrated circuits (ICs). And yes, the company is
preparing to go public in the next few weeks. The lead underwriter is
Robertson Stephens and the price range is $8-$10 (the company intends to
issue 3.3 million shares). The proposed ticker symbol is VRST.
Obviously, ICs have become incredibly complex. In fact, it is often the
case that an IC will meld a variety of different technologies – helping to
reduce costs and increase speed-to-market.
Thus, in order to develop the ICs, there needs to be sophisticated
verification systems. If not, product recalls can be crippling.
Verisity’s product line is extensive. For example: Specman Elite helps to
automate functional verification at all levels of design; Invisible Specman
is a system for very specialized designs; Verification Advisor is a
conglomeration of methodologies to help accelerate the verification process;
SureCov allows for simulations; and SureLint helps to detect flaws in a
simulation.
Top customers include Alcatel, Canon, Cisco Systems, Conexant Systems,
Ericsson, Hewlett Packard, Intel, LSI Logic, Lucent Technologies and Texas
Instruments. There are also reseller agreements with ARM and MIPS
Technologies.
In the first nine months of 2000, revenues were $13.9 million, which was up
from $7.6 million in the same period a year ago. In fact, losses declined
from $5.7 million to $4.4 million.
However, the company has terrible timing. True, the company has much-needed
technology and is growing fast. But, for the most part, it is still a small
company. And this is anathema to IPO investors. So, do not expect any
fireworks from this IPO.
