English writing software developer WhiteSmoke Inc. and Shlomo Kramer's applications security solutions developer Imperva Inc. updated their prospectuses for Wall Street IPOs, despite the plunge in the stock markets.
Last week, Imperva updated its draft prospectus, following the appointment of two new directors, which was probably related to the planned IPO. Yesterday, Whitesmoke updated its prospectus to include its financial results for the second quarter of 2011. While encouraging, the results also show that the company's cash reserves are running out and it will soon have no means to stay in business.
In its initial draft prospectus, published three months ago, Whitesmoke said that it plans to raise $23 million. Neither then nor now did it state the company value for the offering. Revenue quadrupled from the corresponding quarter of 2010 to $3.4 million for the second quarter and its net loss widened to $763,000 from $472,000. The heavier losses were due to massive investment in sales and marketing, which rose to 88% of revenue in the first half from 78% in the corresponding half. The spending reduced the company's cash to $205,000, jeopardizing the company's ability to survive with an IPO.
Published by Globes [online], Israel business news - www.globes-online.com - on August 23, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011