The Day Ahead: Selectica hopes to repeat FirePond's IPO success

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
Selectica, an e-commerce software vendor, is hoping to strike IPO gold this week just like its two main rivals have. The company is offering four million shares expected to price between $9 and $11 (£5 and £6). Credit Suisse First Boston is the lead underwriter. Judging from the IPOs of FirePond, up 278 percent from its 3 February IPO, and Calico Commerce, up 230 percent from its 6 October IPO, analysts said Selectica should do well. Randall Roth, an analyst for Renaissance Capital, reckons Selectica will trade at a slight discount to FirePond, since revenue is lighter. FirePond reported sales of $12m (£7.4m) in the first quarter ending 31 January. FirePond's quarterly sales were more than Selectica had in the first nine months of 1999. Aside from the usual buzzwords, here's what Selectica's software does: It allows a customer to configure and select options on various products, such as cars and PCs. In filings, Selectica said it makes Internet-selling systems for complex products -- big-ticket consumer items and business-to-business (B2B) products -- and helps the user with selection, configuration, pricing, quoting and fulfilment. Not surprisingly, most of Selectica's customers deliver complex products. Customers include 3Com, Allied Signal, Aspect Communications, BMW, Centigram, Cisco, Hewlett-Packard, Redback Networks and Sun Microsystems. The company is also partnered with leading systems integrators and software vendors such as BroadVision. "The agreement with BroadVision will no doubt help them," said Roth. For the nine months ending 31 December, the company reported sales of $9m (£5m) and a loss of $13.3m (£8.2m). As of 31 December, the company had an accumulated deficit of $24.7m (£15.3m). Like many young companies, Selectica relies on a handful of customers for much of its revenue. 3Com, Aspect Communications and Fireman's Fund Insurance accounted for 43 percent of revenue for the nine months ending 31 December The company, which has 269 employees, cites Calico Commerce, FirePond and Trilogy Software as the primary competition. BAAN, Oracle, SAP and Siebel Systems are also likely to become competitors and could introduce pricing pressure to the market. Aside from the competition, Selectica also cites some of its own hiccups as a risk. The company said it has had problems managing its accounting and financial reporting systems, as well as the volume of customer contracts. Implementing its software has also been an issue. Moving forward, the company said it would try to boost high-margin software licensing sales while cutting back on services. It also plans to expand internationally. Remember those days where every company tried to slap a dotcom on the end of its name? That fad seems to be ending pretty quickly. In a move that wasn't noticed much last week, InfoSpace.com said it was dropping the dotcom from its name. InfoSpace said the dotcom didn't tell the whole story, since it was positioned "as the global infrastructure company for commerce, communication and information on the Internet and on wireless devices". The name change needs shareholder approval, which shouldn't be a problem. It's not like InfoSpace isn't trendy anymore. The company mentioned all the hot buzzwords, such as "infrastructure", "commerce" and "wireless" in its description. What do you think? Tell the Mailroom and read what others have to say. See techTrader for more technology investment news, plus quotes and research. See Inter@ctive Investor for US tech investor news.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

2 hours ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

4 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

4 hours ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

5 hours ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

6 hours ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

7 hours ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

7 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

8 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Moley

For Gnome 2 die-hards, it is possible to add icons to the bottom panel (or top top panel, if you prefer) which provide the exact Gnome 2...

8 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
ramwellian

Your comments would seem pretty naive and immature. Your 'solution' appears to be, "gee, let's all just give in to the hackers and give them...

8 hours ago by ramwellian on Cloud computing security: no more oxymoron?
BugStalker

"Interesting thought ... If you installed Win7 as a dual boot on a machine that previously only had Linux, and it wrecked your Linux installation,...

9 hours ago by BugStalker on Windows 7 Declares War on GRUB
whs001

This is an excellent summary of Ubuntu and Mint and the interface differences between them. Most such articles take a very partisan position for...

9 hours ago by whs001 on A tale of two distros: Ubuntu and Linux Mint
Moley

@ewallace. Not so clear. Anyone can obtain the text, for example from here http://www.ustr.gov/webfm_send/2379. I support ACTA so long as it and...

9 hours ago by Moley on ACTA: Facts, misconceptions and questions
45283

I think WinRT is fantastic. I just wish it was an option for people that didn't want to go through Microsoft's App Store with its attendant...

12 hours ago by 45283 on Why Windows 8 needs architectural hygiene for WOA
Burn-IT

Nine people? £30m? Who's back pocket is that lot going in? And IF they say it is for new buildings, what about all the ones the government has...

13 hours ago by Burn-IT on Police set to launch three £30m e-crime hubs
ewallace

Just to be clear, nobody knows what is in the text of ACTA, here is a photograph of the text of ACTA http://twitpic.com/8h9iju as submitted to the...

13 hours ago by ewallace on ACTA: Facts, misconceptions and questions
fgvrg56

Unfortunately main issue is that ASUS is refusing to accept that they make some mistake on this version of asus Transformer prime. 1 - GPS sensor...

15 hours ago by fgvrg56 on Asus Eee Pad Transformer Prime Wi-Fi & GPS problems?
Ben Woods

@Marcus A fair question. Just talked with Archos which said it was working on an announcement for next week....

16 hours ago by Ben Woods on Archos confirms G9 Ice Cream Sandwich update schedule
Marcus Karlsson

Any update on this, considering the claimed "first week of February"?

17 hours ago by Marcus Karlsson via Facebook on Archos confirms G9 Ice Cream Sandwich update schedule
apexwm

Bill Goodrich : Just as al_langevin pointed out, with Windows Server 2008 there is no Services for Macintosh anymore. It's gone, not available....

1 day ago by apexwm on Windows Server 2008 drops the ball for Mac compatibility