Irvine Software Developer Plans Initial Stock Offering

Software developer State of the Art Inc. said Friday that it plans an initial offering of stock to the public.

The Irvine firm said it plans to offer an estimated 3 million shares at a price of between $8 to $10 each and has asked the Securities and Exchange Commission to approve the sale. Half the shares will be issued by the company founders and the remainder by the company itself.

The company will raise $12 million to $15 million for working capital, ongoing operations and possible acquisitions, said David Samuels, chairman and chief executive. Another $12 million to $15 million would go to the firm’s co-founders, including George Rivere, vice president of research and development and the only founder still with the firm.

“We have been contemplating this transaction for some time and feel this is a very good time,” Samuels said.

Technology stocks performed well in the stock market during the first quarter, he said.

Founded in 1981, the company develops accounting software programs that generally sell for $700 and up. The company employs 107 people in Irvine.

The products are used in a wide range of industries, Samuels said. Competitors include software makers Computer Associates Inc., Advanced Business Microsystems and TLB Inc.

For the year ended Dec. 31, the company posted earnings of $3.1 million, up 19% from $2.6 million a year earlier. Revenue was $16.1 million, up 46% from $11 million in 1989.