PACIFIC SHARES ARE MARKET-READY.

Byline: Dave McNary Staff Writer

Internet software systems producer Pacific Softworks Inc. raised $5 million Thursday through an initial public offering that will enable the 6-year-old company to boost its marketing activities.

Pacific Softworks, which filed for the IPO in late March, specializes in ``embedded'' software that enables hand-held devices and set-top boxes to connect with the Internet. Customers include Cisco Systems, America Online and General Instruments.

The company, which has 30 employees, posted a first-quarter loss of $59,465, or 2 cents a share, on revenues of $771,650.

The IPO placed 20 percent of the company in public hands through the sale of 950,000 units, consisting of 950,000 common shares and 950,000 warrants, priced at $5.25 a unit. The shares and warrants are expected to begin trading today on the Nasdaq Small Cap Market and under the tickers PASW and PASWW, respectively.

Spencer Edwards Inc., which acted as underwriter, has a 45-day option to purchase up to 142,500 shares to cover any over-allotments. The two-year warrants are priced at $7.50 each and are convertible to common stock.

Pacific Softworks has its roots as a part of Network Research, a think tank opened in 1982 with venture capital funds. Chief Executive Officer Glen Russell created Pacific Softworks through a leveraged buyout in 1993 and owns 70 percent of it following the IPO.