State of the Art Offers Its Stock in Growth Push : Marketing: Irvine developer of accounting software goes public for the first time. It hopes to reward original investors and raise its name recognition.

State of the Art Inc., a developer of accounting software, offered its stock to the public for the first time Thursday in the hope of raising $27 million.

David S. Samuels, chairman and chief executive officer of the Irvine company, said going public should provide a return on investment for original investors and boost the company’s name recognition.

“As the public begins to learn more about our products and our financial track record, it will help us considerably in marketing our products,” Samuels said.

State of the Art reported a profit of $54,000 on revenue of $2.5 million in 1986. Four years later, by 1990, the company had $3 million in profit and $16 million in revenue. In its most recent quarter, ending March 31, the company reported a profit of $810,000 on revenue of $3.7 million.

The 10-year-old company develops and markets 14 types of accounting software for microcomputers under the name MAS 90 Evolution 2, for prices ranging from $199 to $2,000. The software is intended to serve the accounting needs of small- to medium-sized businesses and accounting departments of large companies.

The company began offering 3 million shares of common stock at $9 per share. Of those shares, 1.5 million are being offered by State of the Art and 1.5 million by current shareholders. The 35 original shareholders, who collectively owned a 35% interest before the offering, should own 2.3 million shares after this sale, or a 25% interest in the company.

The offering is being made through lead underwriters Robertson, Stephens & Co. of San Francisco and Donaldson, Lufkin & Jenrette Securities Corp. of New York.

State of the Art sells software through 3,700 public accounting firms and 900 independent consultants. During its first few years in business, the company sold its products primarily in retail software stores. But Samuels said the company decided in 1985 to seek sales outlets where the buyer could receive a full package of accounting advice, ongoing consulting services and after-sales support.

“We wanted a type of reseller who does not simply remarket a software package, but who provides an integrated accounting solution,” said Samuels, who joined State of the Art in 1985 after running his own public accounting company, David S. Samuels Co.