Xscribe Completes Its First Public Offering

Xscribe Corp., a manufacturer of computerized transcription devices for the court reporting industry, completed its initial public stock offering, selling 1.5 million common shares at $8 per share. Of the stock sold, 1.25 million shares were sold by the company and 250,000 shares by existing shareholders.

Net proceeds to the Sorrento Valley-based company will total $9.3 million, said Xscribe chief financial officer Donald Quackenbush. About $1.4 million of the sum will be used to retire debt and the remainder for working capital, he said.

Quackenbush said the offering was unaffected by the disclosure last week that 17 of the company’s employees had resigned or were fired after Xscribe’s internal investigation of alleged drug use by employees.

The offering brings total outstanding Xscribe shares to 5.1 million. For the quarter ended June 30, the company reported net income of $510,000, or 15 cents per share, on sales of $8.1 million, contrasted with net income of $28,000, or 1 cent per share, on sales of $6.2 million over the like period a year ago.