Revenue $US 75 Million (2004) Number of employees 248 (2005) | Founded April 1997 | |
Industry Telecommunications software and services Key people Don Detampel (President and Chief Executive Officer); Todd Vernon (Co-founder and Chief Technology Officer); Nicholas J. Cuccaro (Chief Financial Officer) Products Raindance Seminar Edition; Raindance Meeting Edition; Raindance Web Conferencing Pro; Raindance Reservationless Conferencing Headquarters Louisville, Colorado, United States Type of business Subsidiary, Private Company | ||
Raindance Communications Inc., was a US company that provides online meeting, web conferencing and teleconferencing services. Its products include "Raindance Seminar Edition", "Raindance Meeting Edition", "Raindance Web Conferencing Pro", "Raindance Reservationless Conferencing", and others. The company is typically referred to as simply "Raindance."
Contents
History
Raindance was founded in April 1997. Originally called Vstream, the company specialized in the emerging field of internet streaming media. In 1999 the firm diversified into the web conferencing space by hosting and webcasting audio conferences using its existing streaming technology.
In 2000, Vstream changed its name to Evoke Communications and offered its IPO. In 2002, following a trademark dispute with Evoke Software, the company took the Raindance name.
The 7m-share IPO priced at $8.00, raising approximately $56m for the company and the stock commenced trading on July 25, 2000. In 2005, the stock traded in a range of $1.94- $2.73, closing the month of September 2005 at $2.32, representing a decline of approximately 70% from the IPO price. The company never declared a dividend after going public.
The stock performance over the last five years probably reflects the company's poor earnings. Raindance reported a net loss every year since the IPO (except 2003). The company did report profits in the first two quarters of 2005 based on driving efficiencies in the core business as well as development of web conferencing as a product line. Competition intensified in the space leading Raindance to become an acquisition target.
Executive compensation does not seem excessive. According to Raindance's 2005 proxy statement, CEO Donald F Detampel, Jr. (who also serves on the Board of Directors), received a salary and bonus of close to $500,000 in 2004 (not including stock options), below the amount previously paid to former CEO Paul A. Berberian. Mr. Berberian, a co-founder of Raindance, resigned as CEO in 2003 and from the company's Board of Directors effective May 6, 2005.
In February 2006, Raindance was acquired by Omaha, Nebraska based West Corporation, a provider of outsourced communication solutions for $110 Million, at $2.70 per share in cash. Shareholders of Raindance agreed to the acquisition in April 2006 and the company was then incorporated into InterCall, Inc., a division of West Corporation.
Raindance lawsuit for patent infringement
On September 27, 2005, WebEx sued Raindance Communications, Inc., a competitor, for patent infringement. On October 14, 2005, Raindance filed a countersuit against WebEx for patent infringement. Both parties sought both damages and an injunction enjoining further acts they claim to be infringing on patents. On March 31, 2006, the parties agreed to the dismissal of both actions, releases of claims for past infringement, payments associated with those releases, and cross-licenses to each other's patents. The agreement resulted in Webex receiving $1.0 million from Raindance.