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UPDATE 1-ServiceSource shares rise in Nasdaq debut
March 25, 2011 / 3:49 PM / in 7 years

UPDATE 1-ServiceSource shares rise in Nasdaq debut

* Shares 35.4 pct above IPO price in early trade

* Sold 11.9 mln shares for $10 each vs $7.5 to $9 range

* Morgan Stanley, Deutsche Bank led underwriters

* Began trading on Nasdaq under symbol “SREV”

NEW YORK, March 25 (Reuters) - Shares of ServiceSource International Inc (SREV.O), a service revenue manager, rose 35.4 percent in their Nasdaq debut on Friday after pricing above the proposed price range in the $119 million initial public offering.

San Francisco-based ServiceSource and its stockholders sold 11.9 million shares for $10 each on Thursday. The originally planned price range was $7.50 to $9 per share.

The company helps technology companies -- including Adobe (ADBE.O), Abbott Laboratories (ABT.N) and Verizon (VZ.N) Information Systems -- manage renewals of service contracts, providing cloud applications, software and other services.

ServiceSource’s revenue grew 38 percent in 2010 to $153 million, while its income from operations declined almost 91 percent to $1.2 million. Shareholders saw a net loss of 4 cents per common share in 2010 after several years of gains. In 2009, net income doubled from 2008 to 18 cents per share.

The company’s shareholders planned to sell 3.9 million shares in the IPO, with the other 8 million shares sold in the offering expected to come from the company.

Underwriters on the IPO were led by Morgan Stanley and Deutsche Bank Securities. (Reporting by Alina Selyukh, editing by Matthew Lewis)

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