CrossWorlds seeks to build brand name with IPO cash
NEW YORK – CrossWorlds Software Inc. (NASDAQ:CWLD), an e-business infrastructure software provider which went public on Thursday, said its initial public offering is the first step to building strong brand recognition, both in the U.S. and abroad. The Burlingame, Calif.-based company, which raised $40 million from its IPO, said it will use the proceeds for sales and marketing and also seeks to take advantage of its customer base to spread word of its services.
“We have over 40 customers who have made significant commitment relating to both product and our services and uses them as part of their key infrastructure,” Chief Executive Alfred Amoroso told Reuters.
CrossWorlds’ customers include international chemicals firm DuPont Co., manufacturer Ingersoll-Rand Co. and automotive supplier Delphi Automotive Systems Corp. “We give (customers) a platform that allows them to integrate their internal operations and extend that across the firewall to the Internet,” said Amoroso, describing the company’s business. For the three months ended March 31, the company posted revenues of $7.7 million for a net loss of $10.6 million.
Amoroso, who said that 25 percent of the firm’s revenue comes from operations in Europe, expects the company to grow abroad.
“We’re focused on the UK, Germany (and are) getting into France and the Netherlands,” Amoroso said.
“Since we’re a platform that is part of a company’s infrastructure, many of our customers have worldwide operations that we actually control,” he said. The company’s shares closed up 1/8 to 10-1/8 in trading on the NASDAQ. With almost 25 million shares outstanding after the IPO, the company has a market capitalization of about $253 million. CrossWorlds sold 4 million shares at $10 each through lead underwriter Chase H&Q. The price band for the deal was cut to $10 to $12 a share from $14 to $16 a share on Thursday.
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