Varolii Seeks $82.5 Million in IPO

 
Varolii Corp., a Seattle-based company that provides on-demand, interactive customer communications software plans to go public and raise as much as $82.5 million, according to a recent filing with the U.S. Securities and Exchange Commission.  

The company derives “a significant portion of our revenues from the sale of our solutions for use in the debt collections process,” according to the prospectus. 

Varolii plans to use approximately $9.3 million of the net proceeds from the IPO to pay off debt and the remainder for general corporate purposes, which may include working capital, expansion or changes in our data centers, investments in product development and potential acquisitions of businesses, products or technologies. 

Varolii plans to trade on the NASDAQ market under the symbol VRLI. 

The company cautions in its prospectus that it has a history of net losses and “may not achieve or sustain profitability in the future.” Varolii recorded losses of $490,000, $5 million and $3.2 million for the years ended December 31, 2005 and 2006 and the six months ended June 30, 2007, respectively, according to the filing. As of June 30, the company’s accumulated deficit was approximately $32.1 million.  

Development and expansion, along with legal, accounting and other expenses have outstripped revenues over the last couple of years, according to the company.  

Varolii is currently in its quiet period following the filing. A date for the IPO, underwritten by Lehman Brothers, JPMorgan, William Blair & Co., JMP Securities and RBC Capital Markets, has yet to be scheduled.