| Ticker: DGIT | 875 Battery Street | |
| Exchange: NASDAQ-National Market | San Francisco, California 94111 | |
| Industry: Service | (415) 276-6600 |
| Type of Shares: | Common Shares | Filing Date: | 12/11/95 | |
| U.S. Shares: | 3,000,000 | Offer Date: | 2/6/96 | |
| Non-U.S. Shares: | 0 | Filing Range: | $9.00 - $11.00 | |
| Primary Shares: | 3,000,000 | Offer Price: | $11.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.77 | |
| Offering Amount: | $30,000,000 | Selling: | $0.45 | |
| Expenses: | $1,100,000 | Reallowance: | $0.10 | |
| Shares Out After: | 11,385,963 |
| Manager | Tier | Phone |
| Hambrecht & Quist Incorporated | Lead Manager | (415) 576-3423 |
| Cowen & Company | Co-manager | (212) 495-6000 |
| Merrill Lynch & Co. | Co-manager | (212) 449-4600 |
| Auditor: Arthur Andersen | |||||
| Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 12/31/95 | ||||
| Revenue: | $5.14 | Assets: | $14.46 | ||
| Net Income: | -$8.78 | Liabilities: | $8.09 | ||
| EPS: | -$0.94 | Equity: | $6.37 | ||
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year | |||||
| Business Description |
| The company operates a nationwide multimedia network designed to provide electronic delivery and related services to the broadcast industry by linking content providers to broadcast stations. The company is the leading provider of electronic distribution of audio spot advertising to radio stations. The company's network currently reaches over 4,000 radio stations in the U.S. through its scable, fault-tolerant network operating center. The company believes that its network enables the rapid, cost-effective and reliable transmission of broadcast content and provides higher levels of quality, accountability and flexibility than current distribution methods. Transmissions are currently made over standard telephone or ISDN lines, and the company intends to implement satellite, Internet and other transmission capabilities in the future. DG Systems derives its revenues from advertising agencies, production studios and other service providers that have traditionally relied upon the overnight delivery of audio tapes. |
| Use of Proceeds |
| The company intends to use a majority of the proceeds of this offering for capital expenditures to expand its network including planned capital expenditures of approximately $6.0 million for new equipment in 1996, payment of $2.4 million of debt service due in 1996 on existing lease and term loans with effective interest rates which range from 13% to 18% and for additional working capital to fund anticipated operating deficits. |
©1996 IPO Data Systems, Inc. - All rights reserved.