| Earthlink Network Inc. | |||
| (www.earthlink.net) | |||
| Ticker: | ELNK | 3100 New York Drive, Suite 201 | |
| Exchange: | NASDAQ-National Market | Pasadena, CA 91107 | |
| Industry: | High-Tech (SIC Code 4822) | (818) 296-2400 | |
| Type of Shares: | Common Shares | Filing Date: | 11/8/96 | |
| U.S. Shares: | 2,000,000 | Offer Date: | 1/21/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $14.00 - $16.00 | |
| Primary Shares: | 2,000,000 | Offer Price: | $13.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.91 | |
| Offering Amount: | $30,000,000 | Selling: | $0.50 | |
| Expenses: | $600,000 | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Invemed Associates Inc. | Lead Manager | (212) 421-2500 |
| Issuer's Law Firm: | Hunton & Williams |
| Bank's Law Firm: | Morgan, Lewis & Bockius |
| Auditor: | Price Waterhouse |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 6/30/96 | 6/30/95 | 6/30/96 | ||
| Revenue: | $3.03 | $10.15 | $0.62 | Assets: | $14.56 |
| Net Income: | -$6.12 | -$11.70 | -$1.11 | Curr Assets: | |
| EPS: | -$0.45 | -$0.80 | -$0.08 | Liabilities: | $16.98 |
| Prior EPS: | -$7.13 | -$0.83 | Curr Liabilities: | ||
| Cash Flow/Oper: | -$3.64 | Equity: | -$2.42 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is an Internet service provider. The company links customers to the Internet for an initial fee of $25, thereafter charging them $19.95 each month for unlimited access to the global computer network. The company focuses on providing reliable access, useful information, assistance and services to customers to encourage their introduction to the Internet and to help make for a satisfying user experience. The company believes that many users have not been able to enjoy the benefits of the Internet. Particularly for non-technical users, access to the Internet is often difficult. In addition, for some users the volume and lack of organization of the information on the Internet makes accessing useful information and entertainment an intimidating task. EarthLink's principal strategy is to rapidly expand its customer base and retain those customers who use its services principally by addressing these problems. |
| Competition |
| The Internet services market in which the company operates is extremely competitive, and the company expects competition in this market to intensify in the future. The company's current and prospective competitors include many large companies that have substantially greater market presence and financial, technical, marketing and other resources than the company. The entry of new participants from these categories and the potential entry of competitors from other categories would result in substantially greater competition for the company. |
| Business Plan |
| The principal elements of EathLink's growth strategy are as follows: 1) rapidly expand its customer base; 2) retain the company's existing customers; 3) develop additional service offerings; 4) focus on customer needs. |
| Use of Proceeds |
| To finance sales and marketing, leasehold improvements, purchase of network equipment, office equipment, working capital and general corporate purposes. |