| Dunn Computer Corporation | |||
| (www.dunncomp.com) | |||
| Ticker: | DNCC | 1306 Squire Court | |
| Exchange: | NASDAQ-National Market | Sterling, VA 20166 | |
| Industry: | High-Tech (SIC Code 3571) | (703) 450-0400 | |
| Type of Shares: | Common Shares | Filing Date: | 1/13/97 | |
| U.S. Shares: | 1,000,000 | Offer Date: | 4/21/97 | |
| Non-U.S. Shares: | 0 | Filing Price: | $5.00 | |
| Primary Shares: | 1,000,000 | Offer Price: | $5.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.50 | |
| Offering Amount: | $5,000,000 | Selling: | $0.30 | |
| Expenses: | $475,000 | Reallowance: | $0.10 | |
| Shares Out After: | 5,000,000 |
| Manager | Tier | Phone |
| Network One Financial Securities, Inc. | Lead Manager | (908) 758-9001 |
| Issuer's Law Firm: | Gersten, Savage, Kaplowitz & Curtin |
| Bank's Law Firm: | Stark & Stark, P.C. |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | Continental Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 10/31/96 | 10/31/96 | ||||
| Revenue: | $18.10 | Assets: | $5.28 | ||
| Net Income: | $1.24 | Curr Assets: | |||
| EPS: | $0.31 | Liabilities: | $3.34 | ||
| Prior EPS: | $0.06 | Curr Liabilities: | |||
| Cash Flow/Oper: | $1.08 | Equity: | $1.94 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company manufactures custom computer systems for the Government and selected commercial accounts. Dunn markets its products directly to the Government as a prime contractor or indirectly as a sub-contractor to other federal contractors. The company supplies systems under its own label or the customer's brand name. The company's products include Intel based computer systems configured to meet customer specifications, private label systems, notebook computers and high performance local area and Internet servers. The company also provides related services to its customers, including integration and staging services, configuration control, upgrading existing systems and world-wide warranty support. The company does not provide specialized or proprietary products to the Government. All Government contracts have standard termination clauses which allow the Government to terminate the contracts for convenience. The Government has not prematurely terminated any contracts with the company during the company�s ten year history. |
| Competition |
| The company believes that unique terms and conditions and technical specifications of Government customers typically preclude national brand companies (IBM, Compaq, Apple, etc.) from being successful in responding to Government RFPs. The microcomputer products industry is highly competitive. Pricing is very aggressive in the industry and the company expects pricing pressures to continue to intensify. The microcomputer products industry is also characterized by rapid changes in technology and consumer preferences, short product life cycles and evolving industry standards. |
| Business Plan |
| By historically focusing primarily on the Government market while offering a wide variety of horizontal computer applications, management believes the company has benefited from the following advantages: 1) significant inventory risk eliminated because inventory is procured to satisfy firm fixed price contracts; 2) the company's products are built to contract order allowing the company to take advantage of the latest in technology and market prices; 3) receivable collections and bad debt are significantly reduced due to the stability of the Government; 4) less marketing expenses due to consolidated market; 5) customization of products can be accomplished easily because products are purchased to satisfy a serviceability goals; 6) historical price decreases in computer parts, such as memory, processors, and computer hard disks allow the company to increase profit margins over the life of the contract. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for improvements in its manufacturing capabilities, selling and marketing, and for working capital and general corporate purposes. |