MatrixOne comes out swinging

MatrixOne (Nasdaq: MONE) closed up 48 13/16, or 195 percent, to 73 13/16 Wednesday in its initial public offering.

Its shares moved as high as 75 1/2 in late trading.

MatrixOne, a provider of Internet business collaboration software, priced 5 million shares at $25 each.

The company had projected a price range of $20-$22 a share. The price range was raised to $12 to $14 on Friday. Goldman Sachs is the lead underwriter.

MatrixOne's software allows companies to interact over the Web with its customers, suppliers and other business partners. Conceptual planning and new product design can also be shared, giving companies greater and tighter integration among their engineering, manufacturing, sales and customer service departments.

"Its about taking e-business to the next level," said David Menlow of IPOfinancial.com. "It's running off the scales in terms of revenue, having had 123 percent growth over the past 5 years.".

For the six months ended January 1, the company had a net loss of $3.5 million on revenue $30 million, compared to net loss of $4.1 million revenue of $17.7 million in the same period in 1999.

The company's first Internet business collaboration software product was released in March 1997, and its current version of eMatrix came out in June 1999.

MatrixOne competes with vendors of engineering information management software such as Agile Software (Nasdaq: AGIL), Dassault Systems and Parametric Technology (Nasdaq: PMTC). In market performance, it may also compare to recent successful IPOs in the business-to-business sector, such as Centra Software Inc. (Nasdaq: CTRA) and Bluestone Software Inc. (Nasdaq: BLSW).

Reuters contributed to this report.