By Mike Musgrove
Washington Post Staff Writer
Wednesday, March 17, 2010; A18
BroadSoft, a Gaithersburg-based maker of telecommunications software, said Tuesday that it has filed for an initial public offering that could raise as much as $103.5 million for the company.
In a filing with the Securities and Exchange Commission, BroadSoft said it would use the offering's proceeds to expand its software development and marketing operations, as well as to finance future acquisitions.
BroadSoft's flagship product, the "BroadWorks" software, is used by telecommunications providers to manage networks and bill customers.
"You're not going to hear a lot about [BroadSoft] unless you're in the industry," said Andy Abramson, an industry expert and the creator of a blog called "VoIP Watch" that follows BroadSoft and its competitors. "It's a well-run, well-balanced, well-respected company."
Industry research firm Infonetics estimated that BroadSoft held 33 percent of its market, as of the end of 2009. BroadSoft counts more than 425 telecommunications providers in 65 countries as clients.
In its SEC filing, the company said it has neither set a date for the offering nor determined the stock price and number of shares to be offered. BroadSoft said $4.3 million of the money it raises would be used to redeem preferred stock.
The company, founded in 1998, also hopes to expand its range of products. In a prospectus on the offering, BroadSoft said that its customers have seen "significant challenges," including falling revenue as prices for basic voice and high-speed data connections have dropped.
"Our goal is to strengthen our position as the leading global provider of multimedia application servers," the company said.
BroadSoft proposed listing its stock on the Nasdaq Global Market under ticker symbol "BSFT."