Stock Watch: Resonate Hits a High Note

Amid a flurry of Internet-related IPOs Thursday, the biggest winner was Sunnyvale, California-based Resonate, Inc. (Nasdaq: RSNT), which ended up 15 1/8 at 36 1/8.

Demand for the stock led underwriters to increase the offering price from an initially anticipated $15 to $17 per share, and the size of the IPO from 3 million shares to 4 million. The “kicker” for the deal, according to IPO.com’s Jeff Hirschkorn, is “the ownership stakes of some big-name backers.”

Kleiner, Perkins, Caulfied & Byers holds a 12 percent stake in the company, and Chase Venture Capital Associates, Lehman Brothers and Sun Microsystems also hold shares, Hirschkorn said.

Resonate, which had 1999 revenue of $9.9 million and a loss of $18.87 million, makes software that the company says “ensures the availability and performance of e-business applications.” The company’s products provide monitoring, reporting and service controls for e-business applications, serving as “a systems administrator for the Internet,” said Hirschkorn.

Competitors include Alteon Web Systems, Arrowpoint Communications and Cisco Systems.

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