Cash Flow Positive for 5 Years - Coverity Will Expand Product Portfolio to
Capture Additional Market Opportunities
New Board of Directors Includes Tony Zingale, Aki Fujimura and Other
Industry Veterans
SAN FRANCISCO, Feb. 19 /PRNewswire/ -- Coverity(TM), Inc., the leader
in improving software quality and security, today announced the company has
accepted its first round of outside funding from Foundation Capital and
Benchmark Capital. The $22 Million round of financing follows 5 consecutive
years of cash flow positive growth for Coverity, during which time the
company was successfully bootstrapped by product sales. Coverity will use
the funds to extend sales and marketing reach, and to expand its product
portfolio through both acquisition and accelerated internal research and
development efforts. The company today also announced a new board of
directors that includes a number of senior executives from successful
development and testing companies such as Mercury Interactive, Cadence and
Pure Software.
"It is a rare opportunity to close an initial round of funding with an
enterprise software company that's been cash flow positive for half a
decade and boasts more than 400 customers," said Tony Zingale, former CEO
of Mercury Interactive and new Coverity board member. "Previously, Mercury
created a billion dollar business helping IT quality assurance teams
validate and monitor the performance of production IT systems. Coverity's
opportunity is to tackle the broader issue of software integrity but to
address it on the developer's desktop when problems cost an order of
magnitude less to correct."
Coverity's expanded product portfolio will allow the company to
establish a new presence in targeted segments of the market for Application
Lifecycle Management tools. According to a 2007 Gartner report on
Application Development and Project and Portfolio Management Software, the
worldwide market for these tools is forecast to grow from $7.2 billion in
2006 to more than $9.3 billion in 2011.(1)
"The process of software development today is too manual and ad hoc to
succeed in the face of escalating code complexity due to outsourcing,
multi-threaded applications, aging legacy code and a host of other factors.
We believe this increasing complexity will require a new toolset on every
developer's desktop within the next five years," said Seth Hallem, CEO of
Coverity. "The infusion of capital and veteran leadership through our
expanded board will allow Coverity to bring new products to market that
deliver an integrated approach to designing and developing robust, secure
software applications as we continue to press our advantage in static
analysis."
Coverity will use this round of investment for acquisitions, internal
product development, further expansion into international markets and
additional growth for its U.S. sales force to help meet demand for Coverity
Prevent(TM), the company's industry-leading static analysis solution.
Coverity Prevent is now used by hundreds of thousands of developers, as
adoption of the product has more than tripled in the U.S., Europe and Asia
over the past 2 years.
"In too many instances today, the software development process remains
plagued with inefficiency because software integrity issues are addressed
too late in the development lifecycle. Current industry trends are
compounding the impact of these inefficiencies, including the globally
sourced work force, the expanding scope of today's software applications,
and the networked environment that has driven the emerging security
threat," said Theresa Lanowitz, founder of Voke, a technology analyst firm.
"Because of its patented Software DNA Map technology, Coverity has a unique
market opportunity to integrate emerging technologies into a unified
toolset. This approach to software integrity will deliver greater value by
attacking quality and security issues in the design and development phases
of the application lifecycle."
Originally incorporated in 2002, Coverity's top five senior executives
possess a combined 22 years of experience with the company. In conjunction
with this investment, Coverity's boardroom will now benefit from the
counsel of:
-- Tony Zingale - Most recently, Mr. Zingale served as President and CEO
of Mercury Interactive, one of the largest software testing companies
in the world. By leveraging Mercury's BTO strategy he successfully grew
the company to more than $1B in annual sales, then engineered a $5
Billion merger with HP in 2006. Prior to Mercury, Mr. Zingale was
President and CEO of Clarify, which was acquired by Nortel Networks in
2000. Mr. Zingale brings more than 30 years of experience building
profitable, high growth IT companies to Coverity.
-- Aki Fujimura - Mr. Fujimura is Chairman/CEO of D2S, Inc. Previously,
Mr. Fujimura has served as CTO at Cadence Design Systems. He returned
to Cadence for a second time through the acquisition of Simplex
Solutions, where he was President/COO. Prior to Simplex, Mr. Fujimura
was an inside board member and VP at Pure Software. Both Simplex and
Pure executed initial public offerings during his tenure.
-- Bruce Dunlevie, Benchmark Capital - Mr. Dunlevie has 20 years
experience as a venture capital investor. During this time, Mr.
Dunlevie has invested across a variety of industry sectors, and has
direct investment experience in the software quality arena following
his success with Pure Software, Rational Software, and Catapulse Inc.
Prior to Benchmark, Mr. Dunlevie spent six years as a general partner
with Merrill, Pickard, Anderson & Eyre (MPAE).
-- Paul Holland, Foundation Capital - Mr. Holland has spent a significant
portion of his career in the field of software quality. An early
employee of Pure Software, Mr. Holland managed all European business
for Pure and was instrumental in managing three acquisitions, including
the tool vendor Atria. Mr. Holland has helped take two venture-funded
software start-ups, Kana Communications (KANA), and Pure Software
(RATL), public. Prior to Foundation Capital, Paul was senior vice
president of worldwide sales at Kana Communications.
-- Mike Schuh, Foundation Capital - Mr. Schuh was previously CEO at
Intrinsa, a software quality tool vendor which was acquired by
Microsoft. Prior to joining Foundation Capital in 1998, Mr. Schuh
served as vice president of sales at a number of highly successful
technical software companies including Clarify, Cadence Design Systems
and Computervision.
For more information on Coverity, please visit: http://www.coverity.com
About Coverity
Coverity (http://www.coverity.com), the leader in improving software
quality and security, is a privately held company headquartered in San
Francisco. Coverity's groundbreaking technology enables developers to
control complexity in the development process by automatically finding and
helping to repair critical software defects and security vulnerabilities
early in the application lifecycle. More than 400 leading companies choose
Coverity because it scales to tens of millions of lines of code, provides
100 percent path and value coverage, and has the lowest false positive rate
in the industry. Companies including Juniper Networks, Symantec, McAfee,
Synopsys, NASA, Palm and Wind River rely on Coverity's tools to identify
and eliminate critical defects from their mission-critical code.
1) Gartner, Inc. "Forecast: Application Development and Project and
Portfolio Management Software, Worldwide, 2006-2011, Update" by Laurie
F. Wurster, Fabrizio Biscotti and Asheesh Raina, June 14, 2007
Coverity is a registered trademark, and Coverity Extend and Coverity
Prevent are trademarks of Coverity, Inc. All other company and product
names are the property of their respective owners.
Media Contacts
Jim Shissler
Director, Public Relations
jshissler@coverity.com
+1 (415) 694-5342
Steve Eisenstadt
Page One Public Relations
steve@pageonepr.com
+1 (919) 781-8096
SOURCE Coverity, Inc.
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Related links:
http://www.coverity.com
CONTACT:
Jim Shissler, Director, Public Relations of
Coverity, +1-415-694-5342, jshissler@coverity.com; or Steve
Eisenstadt of Page One Public Relations, +1-919-781-8096,
steve@pageonepr.com, for Coverity
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