| Macrovision Corporation | |||
| Ticker: | MVSN | 1341 Orleans Drive | |
| Exchange: | NASDAQ-National Market | Sunnyvale, CA 94089 | |
| Industry: | Service (SIC Code 7829) | (408) 743-8600 | |
| Type of Shares: | Common Shares | Filing Date: | 1/7/96 | |
| U.S. Shares: | 2,350,000 | Offer Date: | 3/12/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $10.00 - $12.00 | |
| Primary Shares: | 2,350,000 | Offer Price: | $9.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.63 | |
| Offering Amount: | $25,850,000 | Selling: | $0.35 | |
| Expenses: | $1,200,000 | Reallowance: | $0.10 | |
| Shares Out After: | 6,762,207 |
| Manager | Tier | Phone |
| Montgomery Securities | Lead Manager | (415) 627-2100 |
| Cowen & Company | Co-manager | (212) 495-6000 |
| Hambrecht & Quist Incorporated | Co-manager | (415) 439-3626 |
| Issuer's Law Firm: | Fenwick & West |
| Bank's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Auditor: | KPMG Peat Marwick |
| Registrar/Transfer Agent: | Boston Equiserve Limited Partnership |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 12/31/96 | ||||
| Revenue: | $17.08 | Assets: | $11.95 | ||
| Net Income: | $1.25 | Curr Assets: | |||
| EPS: | $0.29 | Liabilities: | $5.88 | ||
| Prior EPS: | $0.15 | Curr Liabilities: | |||
| Cash Flow/Oper: | $1.66 | Equity: | $6.07 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company designs, develops and markets video security technologies and products that provide copy protection and video scrambling for motion pictures and other proprietary video materials. The company derives a substantial majority of its net revenues from fees for the application of its copy protection technology to deter unauthorized consumer copying of prerecorded videocassettes of motion pictures and other copyrighted materials that are sold or rented to consumers. The company's technology has been used to copy protect more than 1.5 billion videocassettes worldwide since 1985. The company believes that its video copy protection technologies are accepted as the DE FACTO standard for consumer copy protection. The company has developed an enhanced version of its videocassette copy protection technology for the digital Pay-Per-View networks that are being developed and developed by direct broadcast satellite and cable television operators and the digital versatile disc format. |
| Competition |
| The company believes that it has had no significant videocassette copy protection competitor for the last five years other than companies that have occasionally developed hardware based on the company's technology in foreign countries where the company does not have patents issued. The market for video scrambling products is highly competitive. The company, as a recent entrant into these markets, competes directly or through licensed manufacturers with many companies that have substantially greater name recognition, larger installed customer bases and greater financial and technical resources than the company. The company is not aware of any technology that competes directly with CineGuard. Competition for CineGuard may come from film cinemas located near CineGuard theaters. |
| Business Plan |
| The company is dedicated to providing advanced video security technologies and products to its customers. The company intends to maintain and enhance its position as a leading provider of these technologies and products by focusing on the following key strategies: 1) pursue royalty-based licensing model; 2) leverage key customer relationships; 3) increase market penetration of copy protection business; 4) develop new product applications and technologies; 5) protect patent position. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes including working capital. |