Israeli translation software firm files for $23m Nasdaq IPO

Translation software developer WhiteSmoke Inc. has filed a draft prospectus with the US Securities and Exchange Commission.

By TALI TSIPORI
Whitesmoke 311 (photo credit: screen shot)
Whitesmoke 311
(photo credit: screen shot)
Israeli English grammar correction and translation software developer WhiteSmoke Inc. has filed a draft prospectus with the US Securities and Exchange Commission to raise $23 million in an IPO on Nasdaq.
The company did not disclose the company value for the planned offering. The share will be listed under the ticker “WHSM.”
WhiteSmoke chairwoman and CEO Hilla Ovil-Brener and her husband, Vice President of research & development Liran Brener, founded the company in 2002. The company’s flagship product, the WhiteSmoke Writer is an English grammar, spelling, punctuation, and style program.
The company launched its WhiteSmoke Translator program two years ago, and it is currently available for nine languages.
The WhiteSmoke Translator program competes directly with Babylon Ltd., as well as several other companies, including Editor Software Ltd. of the UK, Linguistics Inc. and Ginger Software Inc. of the US, as well as Microsoft Corporation’s spellchecker for its Word and other programs.
WhiteSmoke’s third and latest product is a downloadable toolbar, which is responsible for a third of its revenue.
The company plans to expand by opening representative offices in the US, Europe, and Asia, and to leverage its collaboration with US learning solutions developer Pearson Education into the government and corporate markets.
Although WhiteSmoke has been increasing its revenue, it is not yet a profitable company. Revenue was $5.1 million in 2010, 58 percent more than in 2009, andits net loss was $1.9 million.