Blaze Software


surged Thursday following its initial public offering, as the Internet software company's shares more than doubled in their first hours of trading.

The stock rose 13 3/16, or 82%, 29 13/16 in late Thursday trading.

The Mountain View, Calif.-based company raised $64 million in their offering of 4 million shares led by underwriter

Robertson Stephens


The company said it will use about $20 million for sales and marketing, about $9 million for research and development and another $5 million for professional services.

The initial offering price was raised to $16, above the initial range of $12 to $14, reflecting the interest of institutional investors.

Blaze makes e-business software that enables companies to provide personalized business transactions across all communication channels, including the Internet, automated telephone response systems, staffed customer service centers and self-service electronic kiosks.

The software enables companies to conduct sales, manage customer service, and interact and communicate with customers, employees, partners and suppliers using both conventional and e-business communication channels, including the Internet.

Revenues grew 94% in the nine-month period ending Dec. 31 over the same period in 1998. About 25% of those revenues came from a single order by


(UIS) - Get Report


Other clients include




Prudential Insurance


Fidelity Investments

, and

Sun Microsystems

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The company recorded net losses of $16.09 a share in the nine-month period of 1998, but trimmed its losses to $5.88 a share in 1999.

TL Ventures


Morgan Stanley Dean Witter



Alta Partners

account for nearly 45% of stock ownership.

Stock distribution could become a sticky issue for Blaze if it can't favorably reconcile a claim against the company by one if its founders and former director.

Patrick Perez contends that he was wrongfully denied the opportunity to purchase 1.7 million shares at a price of 54 cents a share. The financing was otherwise unfair and benefited participating stockholders, according to the company's registration with the

Securities and Exchange Commission


Perez has not begun formal legal proceedings, according to Blaze's SEC registration, but has merely asserted "claims" against the company at the time of the filing.

If Perez pursues a lawsuit against Blaze, the company said it could be required to pay substantial damages or issue additional shares to Perez if it lost the case.

In addition, other stockholders that did not participate in the financing may assert similar claims against Blaze, according to the filing with the SEC.

The company notes that it could be forced to issue stock at market value to Perez and take an accounting charge equal to the difference between that value and 54 cents. That amount would currently be about $50 million, nearly 80% of the money raised through the initial offering.