Tech Industry

Convergent jumps out of quiet period

Convergent Group Corporation (Nasdaq: CVGP) shot up 44 percent, and was the second-most traded stock on the Nasdaq Thursday morning, after it announced contracts worth over $100 million signed during its quiet period.

The company did not have a remarkable IPO. It lowered its price range in advance of the August 1 deal, and has only seen a high of 7.75 since. Shares were up 2.28 to 7.13 Thursday.

Convergent provides technology-based business software and services to local governments.

During the six-month quiet period, which began in February and concluded earlier this week, Convergent Group said it signed contracts totaling over $100 million, an increase of 51 percent over the $65 million in new contracts signed during full-year 1999, in which the company had revenues of $66.7 million.

These contracts, which were mostly for the company's Digital Utility product, significantly increased the total dollar value of Convergent Group's contract backlog.

Not only has the number of pending contracts increased, but the average value of each contract has also increased, the company said.

Wit SoundView and Roberston Stephens both rated the company a "buy" as it came out of its quiet period. Both were underwriters for its IPO.