Associated Press
08.18.2004

Three new stocks scheduled to begin trading this week - including Google Inc.'s highly anticipated initial public offering - slashed their expected price ranges Wednesday morning as the IPO market readies for a one-month break from trading debuts after this week.

Google - which was snubbed by regulators in its request to clear the stock for trading Tuesday night - trimmed its planned IPO price to a range of $85 to $95 per share, down from a previous estimate of $108 to $135 per share. Google now stands to raise $1.67 billion to $1.86 billion in its deal, down from original estimates of up to $3.6 billion.

The Mountain View, Calif.-based Internet search giant also reduced the number of shares it is offering to 19.6 million from 25.7 million after several insiders, including co-founders Sergey Brin and Larry Page, cut the amount of stock they planned to sell.

Although the Securities and Exchange Commission requested more information about a Playboy magazine interview with Brin and Page that was released last week, the company says it expects the agency to approve its stock registration by the close of trading Wednesday. Google will trade under the symbol "GOOG" on the Nasdaq National Market.

Two other stocks, which are also Internet-based companies, lowered their pricing expectations Wednesday despite the stock market's upswing in trading activity this week.

WebSideStory Inc., a Web statistics tracking firm, reduced the range of its 5 million share offering to $8 to $9 per share, up to 25 percent below prior estimates of $10 to $12 apiece.

The San Diego-based company said shareholders are selling 600,000 shares, while the company is selling 4.4 million shares in an effort to raise between $35.2 million and $39.6 million, which it plans to use to redeem preferred stock and for service expansions, acquisitions and general corporate purposes.

WebSideStory reported a loss of $1.9 million on revenue of $16.4 million in 2003, but swung to profit during the first half of 2004, posting income of $326,000 on revenue of $10.3 million. Its shares are approved to trade on the Nasdaq under the symbol "WSSI."

PC Mall Inc. spin-off eCost.com Inc. also said it expects to price its IPO at $7 per share, as much as 36 percent below its previously anticipated price range of $9 to $11.

The California-based company, an online retailer of deep-discounted and refurbished brand-name computer equipment and entertainment products, is selling about 3.2 million shares in a deal expected to raise about $22 million. ECost.com said it plans to use the proceeds to pay off debt owed to PC Mall and for capital expenditures and general corporate purposes.

ECost.com turned a profit of $6.4 million on sales of $109.7 million in 2003, but is facing a loss this year on sharply higher advertising expenses. The company's gross margin dipped to a loss during the first half of 2004 for the first time since 2001. The company posted a first-half loss of $15,000 on sales of $77 million.

ECost.com's shares are scheduled to trade on the Nasdaq under the symbol "ECST."

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