| SEEC, Inc. | |||
| (www.seec.com) | |||
| Ticker: | SEEC | 5001 Baum Boulevard | |
| Exchange: | NASDAQ-National Market | Pittsburgh, PA 15213 | |
| Industry: | High-Tech (SIC Code 7372) | (412) 682-4991 | |
| Type of Shares: | Common Shares | Filing Date: | 10/11/96 | |
| U.S. Shares: | 1,800,000 | Offer Date: | 1/22/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $9.00 - $11.00 | |
| Primary Shares: | 1,800,000 | Offer Price: | $7.25 | |
| Secondary Shares: | 0 | Gross Spread: | $0.54 | |
| Offering Amount: | $18,000,000 | Selling: | $0.31 | |
| Expenses: | $780,000 | Reallowance: | $0.10 | |
| Shares Out After: | 2,868,505 |
| Manager | Tier | Phone |
| H.C. Wainwright & Co. Inc. | Lead Manager | (617) 589-9482 |
| Issuer's Law Firm: | Cohen & Grigsby, P.C. |
| Bank's Law Firm: | Morse, Barnes-Brown & Pendleton |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 3/31/96 | 6/30/96 | 6/30/95 | 6/30/96 | ||
| Revenue: | $1.26 | $0.51 | $0.24 | Assets: | $0.46 |
| Net Income: | -$0.15 | $0.07 | -$0.08 | Curr Assets: | |
| EPS: | -$0.09 | $0.03 | -$0.04 | Liabilities: | $1.68 |
| Prior EPS: | -$0.14 | Curr Liabilities: | |||
| Cash Flow/Oper: | Equity: | -$1.22 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company provides a suite of software products and business solutions for maintaining and redeveloping legacy COBOL software applications and related databases, including solutions for year 2000 compliance. The company also provides solutions for the migration of existing COBOL applications from mainframe to client/server environments. The company's software products and solutions are designed to minimize the time and cost of maintenance and redevelopment by automating various functions and utilizing well-defined and repeatable processes. COBOL applications require continual maintenance and redevelopment in order to satisfy constantly changing information requirements and to incorporate advances technology. The company's software products, which are based on the company's core COBOL analysis technology, automate many of the procedures required for COBOL application maintenance and redevelopment, including year 2000 compliance. |
| Competition |
| The market for the company's software products and solutions, including its solutions for the year 2000 problem and client/server migration, is intensely competitive and is characterized by rapid change in technology and user needs and the frequent introduction of new products. The company's principal competitors in the software tools market include VIASOFT, Micro-Focus Group Public Limited Company and Computer Associates International, Inc. The company also competes with large service providers such as IBM's Integrated Systems and Solutions Corp., Cap Gemini America, Computer Horizons Corp. and the Big Six accounting firms. Certain of these service providers have developed or acquired proprietary software tools. The company believes that the principal factors affecting competition in the software tools market include product performance and reliability, product functionality, ability to respond to changing customer needs, ease of use, training, quality of support and price. The primary competitive factors in the solutions, markets, including the year 2000 compliance market, are price, service, the expertise and experience of the service personnel and the ability of such personnel to provide solutions to applications problems. Other than technical expertise and, with respect to the year 2000 compliance market, the limited time available until the year 2000 arrives, there are no significant proprietary or other barriers to entry that could prevent potential competitors from developing or acquiring similar tools or providing competing solutions in the company's market. The company's ability to compete successfully in the sale of products and solutions will depend in large part upon its ability to attract new customers, deliver and support product enhancements to its existing and new customers and respond effectively to continuing technological change by developing new products and solutions. The company believes that its PC-based tools will enable it to compete effectively with various other tool vendors, including those that offer mainframe solutions, in certain segments of the year 2000 market and the COBOL maintenance and redevelopment market. The company believes its Smart Change Factory approach offers a comprehensive, competitive advantage. The company's Smart Change Factory offers customers time- and expense-saving options for a complete end-to-end solution and an analytical approach to year 2000 conversions. |
| Business Plan |
| The company believes that year 2000 compliance will significantly increase the awareness of issues regarding legacy COBOL system maintenance and redevelopment. In addition, the company believes that the trend to outsource certain legacy application maintenance and redevelopment functions by Fortune 1000 or similarly-sized companies and government organizations will continue. The following are key elements of the company's growth strategy: (I) Increase Sales to Existing Customers, (ii) Target New Customers with year 2000 Products and Solutions and (iii) Leverage Expanded Customer Base. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to expand sales and marketing, hire new personnel, increase capital expenditures and for working capital and other general corporate purposes. |