SciQuest has named CEO Stephen Wiehe to be chairman of the Cary company's board of directors.

The company has also appointed Tim Buckley, a former chief operating officer of Red Hat, to be its lead independent director.

Wiehe has been CEO and president of SciQuest since 2001.

During that period the company was taken private in a 2004 management buyout, and then returned to the public markets in September 2010 after raising $57 million in an initial public offering.

SciQuest's technology allows customers to buy goods and services more efficiently online. It has more than 300 customers, including casinos, universities, drugmakers and governments.

SciQuest reported earlier this month that its first-quarter revenue was up 48 percent from the previous year.

The company reported revenues of $20.7 million for the quarter that ended March 31, slightly less than analysts' estimates of $20.78 million.

SciQuest's revenues grew by 28 percent in the third quarter, as the Cary company continued to see growing demand for its e-procurement technology in a number of industries.

Revenue for the third quarter was $13.8 million, just below the consensus of analysts who cover the company. Net income was $800,000, or 3 cents per share, compared to a loss of $3.2 million, or 22 cents per share, a year ago.

SciQuest, which made its Wall Street debut in September 2010, ended the quarter with 325 customers, up from 177 a year ago.

"Overall activity levels continue to be robust and we are seeing strong demand in the higher education market," CEO Stephen Wiehe said in a release.

SciQuest reported another quarter of solid sales growth, as the Cary company signs up more customers for its eprocurement technology.

Revenue for the second quarter was $12.9 million, up 22 percent from a year earlier.

The company, which made its Wall Street debut in September, recently signed a major contract with the state of Colorado. Analysts expect that could lead to other lucrative state contracts.

"We're not killing it, we're not missing it, but as we told investors when we did the IPO, we're going to keep churning out good growth," CEO Stephen Wiehe said in a phone interview.

Net income was flat at $600,000. SciQuest is spending more to win customers and hire new workers.

SciQuest has won a key contract with the state of Colorado, which could open the doors for similar deals with other states.

The deal represents a big breakthrough for Cary-based SciQuest, which sells e-procurement technology and services to universities, pharmaceutical companies and other customers. It has had a contract with Georgia, but officials have been pushing hard to add more business with other state and local governments.

Final terms of the Colorado contract are still being negotiated, but it could be worth nearly $5 million over five years. SciQuest CEO Stephen Wiehe declined to comment until all of the agreements with Colorado are signed.

The contract is a "highly visible win in the state and local market, which we believe may act as a catalyst for additional government opportunities for SciQuest," JMP Securities analyst Patrick Walravens wrote in a report to investors.

SciQuest announced that its No. 2 executive, chief operating officer James Duke, right, plans to resign for personal reasons.

"I would like to thank Jamie for his leadership and dedication that have helped SciQuest reach the strong position we enjoy in the market today," CEO Stephen Wiehe said in a prepared statement. "We wish him the best of luck as he focuses on his personal goals after a transition period at SciQuest."

As it continues steady expansion of its business, SciQuest is slowly adding more staff.

The Cary company is hiring in the Triangle and in Houston, the base for a company it bought in December. It now employs about 240 people and expects to hire more in coming months.

"That means we're seeing more business to support our need for additional people," said CEO Stephen Wiehe.

While it's taking a bit longer to find "great talent" than it did during the economic downturn in 2009 and 2010, the fledgling recovery isn't forcing employers to pay more for top recruits yet, Wiehe said.

Late Thursday, the company reported that first-quarter revenue rose to $12.5 million, up 24 percent from a year earlier. Its profit of 6 cents per share exceeded analysts' expectations.

Cary technology business SciQuest reported another quarter of steady sales gains.

The company helps drug makers, universities, government agencies and others buy goods more cheaply online.

During the first quarter, revenue rose to $12.5 million, up 24 percent from a year earlier. Some of that gain was tied to SciQuest's acquisition of a Texas company, which also helped boost its customer count to 313, nearly double the total of a year ago.

But net income fell to 2 cents a share from 9 cents a share, partly because of compensation and acquisition-related costs.

"We continue to see strong activity levels in all of our target markets," CEO Stephen Wiehe said in a prepared statement. "A solid first quarter put us on a firm foundation for what we expect to be a year of healthy growth."

SciQuest executives, including CEO Stephen Wiehe, center, rang the opening bell at the Nasdaq stock market in New York City's Times Square this morning.

The ceremony came as the Cary technology company and its investors raised millions more on Wall Street by selling 4.7 million additional shares.

SciQuest made its debut on the Nasdaq after an initial public offering of stock in September, the first IPO by a Triangle tech company in years.

This week's so-called secondary offering raised more money to expand its business, and increased the number of shares on the market. It also allowed the company's early investors to cash out some of their holdings.

SciQuest shares, which began trading last fall at $9.50, fell 22 cents to $14.30 today.

Read today's full report on the company's stock sale here.

SciQuest and several investors sold 4.7 million shares this morning, marking the Cary technology company's second trip to Wall Street in six months.

SciQuest went public in an initial public offering of stock in September. Today's so-called secondary offering allows it to raise more money to expand its business, and increase the number of shares on the market.

"Our goal was to put a mix of new and existing investors in the business, and we were able to add some good ones," said CEO Stephen Wiehe.

Wiehe spent the past two weeks meeting with more than 100 mutual fund managers and other investors in 12 cities, selling SciQuest's story.

On Friday, he will join other SciQuest executives and ring the opening bell at the Nasdaq stock market in Times Square.

SciQuest's IPO in September was successful enough that the Cary company will seek more cash on Wall Street.

The technology company filed plans with the Securities and Exchange Commission late today to sell nearly 4 million shares.

SciQuest will sell 1 million new shares to raise more money for various purposes, including possible acquisitions. That move will dilute the value of existing shares, which could hurt the stock price, at least in the short term.

Shareholders, including venture capital firms that invested in SciQuest early on, will sell 2.9 million shares they hold. Those firms include Trinity Ventures of California and Intersouth Partners of Durham.

SciQuest sold shares in its initial public offering last fall at $9.50 each. Since then, the stock has climbed as its business steadily expands.