| DAOU Systems, Inc. | |||
| (www.daou.com) | |||
| Ticker: | DAOU | 5120 Shoreham Place | |
| Exchange: | NASDAQ-National Market | San Diego, CA 92122 | |
| Industry: | High-Tech (SIC Code 3571) | (619) 452-2221 | |
| Type of Shares: | Common Shares | Filing Date: | 12/18/96 | |
| U.S. Shares: | 2,000,000 | Offer Date: | 2/12/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $12.00 - $14.00 | |
| Primary Shares: | 2,000,000 | Offer Price: | $9.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.63 | |
| Offering Amount: | $26,000,000 | Selling: | $0.35 | |
| Expenses: | $756,000 | Reallowance: | $0.10 | |
| Shares Out After: | 11,167,678 |
| Manager | Tier | Phone |
| Alex. Brown & Sons Incorporated | Lead Manager | (410) 895-2700 |
| Cowen & Company | Co-manager | (212) 495-6000 |
| Hambrecht & Quist Incorporated | Co-manager | (415) 439-3626 |
| Issuer's Law Firm: | Baker & McKenzie |
| Bank's Law Firm: | Cooley Godward Castro Huddleson & Tatum |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | Continental Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 9/30/96 | 9/30/95 | 9/30/96 | ||
| Revenue: | $14.33 | $12.36 | $7.08 | Assets: | $11.47 |
| Net Income: | $1.24 | -$0.05 | $0.53 | Curr Assets: | |
| EPS: | $0.17 | -$0.01 | Liabilities: | $2.62 | |
| Prior EPS: | -$2.15 | $1.02 | Curr Liabilities: | ||
| Cash Flow/Oper: | -$1.28 | Equity: | $8.85 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company designs, implements, supports and manages advanced computer network systems for hospitals, integrated healthcare delivery systems, and other healthcare provider organizations. The company combines its knowledge of the specialized information needs of the healthcare industry with its technological expertise in computer network solutions to provider organizations. The company believes that its success is attributable to its healthcare industry focus, depth and breadth of technological expertise, ability to objectively evaluate its customers' computer network systems due to its vendor independence and its history of successful customer engagements. Since 1987, the company has provided computer network services to over 350 customers ranging in size from single-site organizations to multi-state organizations with over 80 sites. The company's customers include Catholic Medical Center of Brooklyn and Queens, Inc., New York; Mercy Health Services, Farmington Hills, Michigan; Atlantic Health System, Morristown, New Jersey; Lutheran Health Systems, Fargo, North Dakota; Candler Health System, Savannah, Georgia; and St. Mary's Health Network, Reno, Nevada. |
| Competition |
| The healthcare network services industry is comprised of a large number of participants and is subject to rapid change and intense competition. The company's competitors include system integrators, VARs, consulting companies, local and regional networks services firms, telecommunications providers and network equipment, computer systems and healthcare software vendors, many of which have significantly greater financial, technical and marketing resources and greater name recognition than does the company. |
| Business Plan |
| The company's objective is to be a leading provider of advanced computer network systems and network management services to healthcare provider organizations. The principal elements of the company's strategy are: 1) expand and strengthen customer relationships; 2) develop complementary services; 3) maintain technology expertise; 4) recruit, train and retain qualified personnel; 5) heighten DAOU's healthcare industry presence. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for working capital and general corporate purposes. |