|Selectica strikes stellar performanceo on IPO|
San Jose, Calif.; March 12, 2000 - Selectica, an E-Commerce company whose software helps companies such as 3Com Corp. and Cisco Systems sell products and services on the Internet, more than quadrupled in its IPO March 10, as it rose 111-15/64 to close at 141-15/64 on its first trading day.
At that price the company has a market value of about $4.88 billion. The individual stakes of Raj Jaswa, CEO and co-founder, chief technical officer Sanjay Mittal, would be worth $360.3 million and $431.2 million, respectively, according to Reuters news service.
The shares backed off March 13 to 128-7/8 in profit-taking.
Selectica sold four million shares, a 12 percent stake, at $30 each, raising $120 million. The IPO price was raised from an earlier range of $11-$13 in the face of strong investor demand.
Exactly a week earlier the IPO mover was Oakland, Calif.-based Versata, an Internet software company co-founded by Naren Bakshi. which more than tripled as it rose 68-3/4 to 92-3/4. It has dropped since then and closed March 13 at 67-1/8.
Selectica's software lets companies sell complex products and services over the Web, replicating the traditional functions of a salesperson, such as analyzing a customer's needs, the company said. The software also allows companies to sell through PCs and mobile devices.
Cisco Systems, Inc. recently chose Selectica's ACE software to power Cisco's enterprise-wide Internet commerce configuration capabilities after a six-month evaluation cycle and successful pilot implementation.
"We are pleased that Cisco, a world leader in Internet commerce, has chosen to standardize on our system for Internet-based selling," Jaswa said after the deal was announced.
Companies are buying Internet selling software because "for the first time, the software is able to imitate all the key steps that a salesperson does and do that over the Internet," said Alan Naumann, the chief executive of Calico Commerce Inc., a Selectica competitor based in San Jose.
Redwood City-based Oracle Corp., the world's largest database-software maker, is also a Selectica competitor.
Selectica has yet to turn a profit: it lost $13.3 million on sales of $9.1 million for the nine months ended Dec. 31, compared with a loss of $4.7 million on sales of $2 million for the same period a year ago. The company will release its fiscal fourth-quarter and year-end results on about April 21.
Redwood City-based Draper Fisher Jurvetson, New York-based Zilkha Venture Partners, and Chicago-based JK&B Capital are among venture capital firms that have invested in the company.
Jaswa, was co-founder of OPTi, Inc., where he was president and general manager of core logic products.
He helped take the company public in 1993. Prior to OPTi he worked with Chips and Technologies, Intel and General Electric Corp. in various marketing and engineering positions.
Jaswa hold a bachelor's in technology from the Indian Institute of Technology, Mumbai, an MSEE from the University of Toronto and an MBA from Stetson University.