Maryland-based BroadSoft has filed an S-1 with the SEC in preparation for a long awaited IPO. While the price and number of shares are obviously undetermined at this stage, they hope to raise some $103M in all. Goldman Sachs and Jefferies will be handling the book running for the offering. BroadSoft has long been near the top of my personal list of companies that ought to be public, I suspect they would have a couple years ago when the IPO market went cold. The company's software underlies many of the next generation voice products out in the market right now.
This of course gives us our first real chance to look at the company's financials. Here's a quick peek at their 2009 quarterly results:
|$ in millions||Q1||Q2||Q3||Q4|
SG&A includes non-cash stock compensation. At the end of 2009, BroadSoft had $22.9M in cash & equivalents, and about $14M in long term debt. Verizon and Ericsson accounted for 10% and 11% of the company's revenues in 2009. The company's licensing revenue is rather lumpy, which is probably going to make their revenue growth rather difficult to predict on a quarterly basis.
My overall impression is: Wow, I thought they were bigger than that based on the prevalence of their products. But we can also see a steady trend throughout 2009 toward profitability, which they in fact attained in the fourth quarter. Given that along with improving sentiment in the market toward the sector, it does seem like a good time for an IPO.
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