Software Maker ArcSight Plans IPO
ArcSight Inc., a provider of data security software, plans an initial public offering of its common stock, according to a regulatory filing Tuesday with the Securities and Exchange Commission.
The company did not disclose the estimated number or price range of shares to be offered, but indicated the offering price could total up to $74.8 million.
ArcSight said some stockholders will sell shares in the offering.
ArcSight said its software allows organizations to identify, prioritize and
respond to external and internal threats to business and technology infrastructure,
as well as compliance and corporate policy violations.
For the fiscal year ended April 30, ArcSight narrowed its losses to $257,000, from $16.7 million in fiscal 2006. During the same period, revenue rose to $69.8 million, from $39.4 million in the prior year.
The company said it is working to correct a material weakness in its internal control over financial reporting.
As of April 30, ArcSight said it has sold its products to more than 350 customers across multiple industries and government agencies in the U.S. and internationally.
The Cupertino, Calif.-based company plans to use net proceeds from the IPO for general corporate purposes, including working capital and potential acquisitions.
ArcSight said the offering price was estimated solely to calculate its registration fee and may change.
Morgan Stanley (nyse: MS - news - people ) is serving as the IPO's lead underwriter. Lehman Brothers (nyse: LEH - news - people ), Wachovia (nyse: WB - news - people ) Capital Markets and RBC Capital Markets are also underwriting the offering.
ArcSight expects to list its shares on the Nasdaq Stock Market (nasdaq: NDAQ - news - people ) under the symbol "ARST."