| New Era of Networks, Inc. | |||
| (www.neonsoft.com) | |||
| Ticker: | NEON | 7400 East Orchard Road, Suite 230 | |
| Exchange: | NASDAQ-National Market | Englewood, CO 80111 | |
| Industry: | High-Tech (SIC Code 7372) | (303) 694-3933 | |
| # of Employees: | 133 | ||
| Type of Shares: | Common Shares | Filing Date: | 1/22/97 | |
| U.S. Shares: | 2,760,000 | Offer Date: | 6/18/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $7.00 - $9.00 | |
| Primary Shares: | 2,760,000 | Offer Price: | $12.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.84 | |
| Offering Amount: | $22,080,000 | Selling: | $0.50 | |
| Expenses: | $850,000 | Reallowance: | $0.10 | |
| Shares Out After: | 8,140,461 |
| Manager | Tier | Phone |
| UBS Securities Inc. | Lead Manager | (212) 821-4510 |
| Montgomery Securities | Co-manager | (415) 627-2100 |
| Issuer's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Bank's Law Firm: | Cooley Godward Castro Huddleson & Tatum |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | First National Bank of Boston |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 3/31/97 | 3/31/96 | 3/31/97 | ||
| Revenue: | $7.14 | $2.45 | $0.11 | Assets: | $7.37 |
| Net Income: | -$5.67 | -$0.78 | -$0.76 | Curr Assets: | $5.45 |
| EPS: | -$0.98 | -$0.13 | -$0.14 | Liabilities: | $4.54 |
| Prior EPS: | -$1.54 | -$0.98 | Curr Liabilities: | $4.15 | |
| Cash Flow/Oper: | -$5.43 | -$0.01 | $0.15 | Equity: | $2.83 |
| Cash Flow/Fin: | $8.71 | -$0.20 | -$0.16 | Cash: | $1.64 |
| Cash Flow/Inv: | -$1.02 | -$0.20 | Working Cap: | $1.29 | |
| Business Description |
| The company develops, markets and supports application integration software and provides application integration services. The company's flagship software suite, NEONet, provides organizations with a structured software platform for the integration of disparate systems and applications across the enterprise, a process known as application integration. NEONet facilitates the rapid and efficient deployment and ongoing maintenance of application integration across the enterprise. NEONet supports a heterogeneous environment of hardware, operating system, network and database platforms, permits organizations to leverage existing legacy systems, and accommodates the extension of the corporate information systems environment to new enterprise applications and to new computing paradigms such as the Internet/Intranet. |
| Competition |
| The market for the company's products is intensely competitive and is expected to become increasingly competitive as current competitors expand their product offerings and new competitors enter the market. In this regard, the company believes that the application integration market is relatively new, such that there is great liklihood that additional, significant competitors will enter the market. The company's current competitors include a large number of companies offering one or more solutions to the application integration problem, some of which are directly competitive with NEONet. |
| Business Plan |
| The company's objective is to establish NEONet as the leading standard for application integration across the enterprise. Key elements of the cmpany's strategy include: 1) expand vertical markets; 2) maintain technological leadership; 3) expand sales capacity worldwide; 4) develop cross-industry applications. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes including working capital and the repayment of debt and certain royalty obligations. |
| Name of Shareholder | % Owned Before | % Owned After |
| George F. Adam, Jr. | 47.10% | 32.00% |
| Steve Lazarus | 16.30% | 11.00% |
| ARCH Venture Fund II, L.P. | 16.30% | 11.00% |
| Venrock Associates | 14.60% | 9.90% |
| Merrill Lynch Group, Inc. | 7.10% | 4.80% |
| Officer Name | Title | Age |
| George F. Adam, Jr. | Chairman of the Board, Chief Executive Officer, President and Director | 50 |
| Harold A. Piskiel | Senior Vice President , Chief Financial Officer and Director | 50 |
| Stephen E. Webb | Senior Vice President and Chief Financial Officer | 48 |
| Michael E. Jaroch | Senior Vice President of Human Resources | 52 |
| Robert I. Theis | Senior Vice President of Marketing | 35 |
| Frederick T. Horn | Senior Vice President of Product Development and Client Services | 43 |
| Frank A. Russo, Jr. | Senior Vice President of Sales and Field Operations, Eastern Region | 52 |
| Kevin Scully | Senior Vice President of Sales and Field Operations, Financial Services | 43 |
| Evan G. Westenskow | Senior Vice President of Sales and Field Operations, Western Region | 49 |
| Peter Hoversten | Senior Vice President, Application Development and Field Operations | 42 |
| Leonard M. Goldstein | Senior Vice President, Senior Counsel and Secretary | 50 |
| James C. Parks | Vice President of Finance and Controller | 53 |