Pointcast pushes a first public offering

Internet push technology pioneer Pointcast has registered to perform an initial public offering (IPO), issuing 3.75 million shares at between $10 and $12 a share.

Pointcast created the 'push' hype when it launched its Pointcast Network in 1995. Since then, push has become a dirty word and many copycats have faltered, but the Pointcast Network has remained popular even as other companies move to more personalised information delivery services.

Pointcast has repositioned itself recently as an online publisher rather than a software publisher.

Pointcast developed its own proprietary internet client software, which it uses to deliver customised news content direct to the user's desktop and has recently launched version 2.5.

The company now claims 1.2 million registered users of its information service. Paid advertising is the company's main source of income, although this is yet to reap huge rewards. According to the company's S-1 filing with the Securities and Exchange Commission, Pointcast had net losses of $29.1 million and sales of $18 million in 1997. In the first quarter of this year, the company lost $6.4 million on sales of $5.1 million.

Pointcast said it intended to use the proceeds of its IPO for general corporate purposes, including working capital, capital expenditures and the expansion of its sales capabilities and marketing efforts. After the IPO, the total number of shares will be 21.3 million, giving the company a market capitalisation of over $200 million.