NEW YORK-TCSI Corp., a California-based software company serving wireline and wireless carriers, sold 3.45 million shares of its common stock March 27 at a price of $28 per share. TCSI stock closed the next trading day at a share price of $29, according to Alex, Brown & Sons Inc. of Baltimore, the lead underwriter.
Some 2.45 million shares of the add-on offering were sold by Harvey E. Wagner, outgoing TCSI board of directors chairman, who received those proceeds. Wagner, the venture capital investor who helped found the company in 1983, remains a board member.
The remaining one million shares netted proceeds of approximately $26 million for TCSI. It plans to use about half of the money for capital and research and development expenses this year, with the remainder going for working capital.
Among other enterprises, TCSI is involved in a worldwide agreement to provide Motorola Inc. with software products and services.
TCSI’s corporate strategy is to exploit an opportunity engendered by competition among established and new telecommunications providers. “The pressure to provide (services) quickly and cost-effectively has increased the need for scalable and flexible software solutions that improve and automate the management of communications networks and enable rapid introduction of new and enhanced services to a growing number of subscribers,” the prospectus said.