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Now Vitria Heads for the Market.

Hard on the heels of Active Software and Tibco, Vitria Technology Inc is the third EAI enterprise application integration company in as many weeks to file for an initial public offering. Riding the current wave of interest in EAI, Vitria is looking to raise up to $75m. Credit Suisse First Boston is the lead underwriter. All three EAI companies hope to ride the coat tails of their peers Neon and TSI, which are performing well as publicly-traded stocks.

The S1 SEC filing shows Vitria lost $2.7m on revenue of $5.2m in the three months through March this year, compared with a loss of $1.5m on revenue of $661,000 in the same quarter last year. It lost $9.6m on revenue of $7.6m in 1998.

Vitria claims to have more than 30 customers, including Cablevision, Covad, Deutsche Bank, Duke Energy, FedEx, Fujitsu PC, Inacom, Level 3, PageMart Wireless, Qwest, SBC, Sprint and Verio Its relationships with Andersen Consulting and EDS are key. It counts Neon, Active Software and CrossWorlds Software, itself still pre-IPO, as its chief competition bar in-house MIS shops.

In 1998, sales to its ten largest customers accounted for 86% of total revenues; Level 3 accounted for 30% of total revenues, and sales to KPMG accounted for another 12%. Research grants for integration work awarded to it by the National Institute of Standards and Technology accounted for a further 10% of revenues in 1998. Telco and financial industry sales accounted for 57% of revenue in 1998 and 73% of revenue in the first quarter of 1999.

Vitria claims it performs four key tasks that, in combination, are largely unmatched in the industry; modeling business processes from a graphical interface; integrating internal and external applications; using the internet; and gathering and analyzing process data in real-time and using it to change processes.

Vitria has 157 employees; 56 in research and development, 55 in sales and marketing, 26 in customer support, professional services and training, and 20 in administration and finance.
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Publication:Computergram International
Geographic Code:1USA
Date:Jun 24, 1999
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