| NACT Telecommunications, Inc. | |||
| Ticker: | NACT | 382 East 720 South | |
| Exchange: | NASDAQ-National Market | Orem, UT 84058 | |
| Industry: | Transportation (SIC Code 4813) | (801) 225-6248 | |
| Type of Shares: | Common Shares | Filing Date: | 12/12/96 | |
| U.S. Shares: | 3,000,000 | Offer Date: | 2/26/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $10.00 - $12.00 | |
| Primary Shares: | 2,000,000 | Offer Price: | $10.00 | |
| Secondary Shares: | 1,000,000 | Gross Spread: | $0.70 | |
| Offering Amount: | $33,000,000 | Selling: | $0.40 | |
| Expenses: | $650,000 | Reallowance: | $0.10 | |
| Shares Out After: | 8,113,712 | |||
| Spin out parent firm: | GST Telecommunications, Inc. | |||
| Manager | Tier | Phone |
| Hambrecht & Quist Incorporated | Lead Manager | (415) 439-3626 |
| Montgomery Securities | Co-manager | (415) 627-2100 |
| Issuer's Law Firm: | Olshan Grundman Frome & Rosenzweig |
| Bank's Law Firm: | Brobeck, Phleger & Harrison |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 9/30/96 | 9/30/96 | ||||
| Revenue: | $16.29 | Assets: | $14.69 | ||
| Net Income: | $0.19 | Curr Assets: | |||
| EPS: | $0.03 | Liabilities: | $4.47 | ||
| Prior EPS: | $0.01 | Curr Liabilities: | |||
| Cash Flow/Oper: | Equity: | $10.21 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company provides advanced telecommunications switching platforms with integrated applications software and network telemanagement capabilities. The company provides a integrated turnkey telecommunications switching solution. Because the company provides a complete, integrated solution, its customers do not require the multiple suppliers of hardware and value added resellers of software that would otherwise be necessary to provide a wide range of services and applications. The company's customers include long distance carriers, prepaid debit (calling) card and prepaid cellular network operators, international call back/reorigination providers and other specialty telecommunications service providers. The company's products and services include the STX application switching platform, the NTS telemanagement and billing system and facilities management services. In May 1996, the company introduced the STX, an integrated digital tandem switching system that currently supports up to 1,024 ports per switch and can be combined with three additional STXs to provide a total capacity of 4,096 ports per system. |
| Competition |
| The market for switching equipment and network management and billing systems is highly competitive, and the company expects competition to increase in the future. The market is subject to rapid technological change, regulatory developments in the telecommunications industry and emerging industry standards. The company believes that the primary competitive factors in the market for switching equipment and network telemanagement and billing systems are the development and rapid introduction of new product features, price/performance, reliability and quality of customer support. |
| Business Plan |
| The company's objective is to be a leading manufacturer and supplier of turnkey solutions to providers of enhanced telecommunications services on a worldwide basis. Key elements of the company's strategy are to: 1) provide a complete integrated switch solution; 2) focus on growth-oriented telecommunications providers; 3) build direct sales organizations; 4) target customers with large capacity requirements; 5) expand into international markets; 6) maintain a high level of customer satisfaction. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for product development, sales and marketing, other working capital and general corporate purposes and possible acquisitions of or investments in complementary businesses or products.. |