| Positron Fiber Systems Corp. | |||
| Ticker: | PFSCF | 5101 Buchan Street, 4th Floor | |
| Exchange: | NASDAQ-National Market | Montreal, CANAD H4P 2R9 | |
| Industry: | Manufacturing (SIC Code 3661) | 5143452200 | |
| # of Employees: | 117 | ||
| Type of Shares: | Common Shares | Filing Date: | 6/30/97 | |
| U.S. Shares: | 5,000,000 | Offer Date: | 8/18/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $9.00 - $11.00 | |
| Primary Shares: | 2,600,000 | Offer Price: | $11.00 | |
| Secondary Shares: | 2,400,000 | Gross Spread: | $0.77 | |
| Offering Amount: | $50,000,000 | Selling: | $0.44 | |
| Expenses: | $1,500,000 | Reallowance: | $0.10 | |
| Shares Out After: | 13,274,909 |
| Manager | Tier | Phone |
| Robertson, Stephens & Company | Lead Manager | (415) 989-8500 |
| Montgomery Securities | Co-manager | (415) 627-2100 |
| Issuer's Law Firm: | Milbank, Tweed, Hadley & McCloy |
| Bank's Law Firm: | Hale and Dorr |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
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 | ||
| 3/31/97 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $12.52 | $3.14 | $0.95 | Assets: | $19.14 |
| Net Income: | -$4.81 | -$1.27 | -$1.91 | Curr Assets: | $14.17 |
| EPS: | -$0.56 | -$0.13 | -$0.15 | Liabilities: | $11.30 |
| Prior EPS: | -$0.71 | -$1.66 | -$2.29 | Curr Liabilities: | $8.06 |
| Cash Flow/Oper: | -$7.61 | $0.98 | $5.46 | Equity: | $7.85 |
| Cash Flow/Fin: | $12.18 | -$0.78 | -$0.07 | Cash: | $0.16 |
| Cash Flow/Inv: | -$3.26 | -$0.78 | Working Cap: | $6.11 | |
| Business Description |
| The company manufactures advanced broadband access network systems for local telecommunications carriers. The products allow small carriers to provide high capacity voice and data communications services using fiber optic and digital technologies. The company's products include fiber optic add/drop multiplexers based on the synchronous optical network and synchronous digital hiearchy transmission standards. SONET and SDH were initially developed to enable high capacity voice and data transmission over long distance (backbone) communications netowrks. SONET/SDH technology offers telecommunications carriers superior carrying capacity, enhanced network management, a high degree of reliability and the ability to easily provision new services. Deregulation of the telecommunications industry worldwide has created significant competition for the provision of voice, video and data communications services. To compete in this market, competitive access providers and competitive local exchange carriers are deploying alternative local access networks incorporating SONET/SDH technology. |
| Competition |
| The market for local telecommunications network systems is highly competitive. Many of the company's competitors have greater financial, technical and marketing resources, greater manufacturing capacity and more established customer relationships with network operators than the company. The company's primary competitors include Alcatel, ECI, Fujitsu, Hitachi, Lucent, NEC, Nortel, Pirelli, Samsung, Siemens and Tellabs. In contrast to the company, Alcatel, Lucent, NEC, Nortel and Siemens among others, are providers of a full complement of switches, fiber optic transmission terminals and fiber optic signal regenerators and can position themselves as vertically integrated, "one-stop shopping" system providers to potential customers. There are also a number of smaller companies offering SONET-based products which are not primarily focused on the transmission market |
| Business Plan |
| The company's objective is to become a leading provider of broadband access systems to telecommunications carriers worldwide. The company's plan to achieve this objective includes the following elements: (I) Expand Customer Base in CAP/CLEC Market, (ii) Leverage Core SONET/SDH Technology Through Strategic Relationships, (iii) Expand Sales and Marketing Efforts, (iv) Increase Technological Capabilities of Product Families and (v) Penetrate LEC Markets. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for working capital and general corporate purposes including potential acquisitions. |