| Power Computing Corporation | |||
| Proposed Ticker: | PWRC | 2400 South IH-35 | |
| Exchange: | NASDAQ-National Market | Round Rock, TX 78681 | |
| Industry: | High-Tech (SIC Code 3571) | (512) 388-6868 | |
| Type of Shares: | Common Shares | Filing Date: | 6/27/97 | |
| U.S. Shares Filed: | 3,000,000 | Filing Range: | $8.00 - $10.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $27,000,000 | |
| Primary Shares: | 3,000,000 | Expenses: | $1,500,000 | |
| Secondary Shares: | 0 | Shares Out After: | 17,719,113 |
| Manager | Tier | Phone |
| Prudential Securities Incorporated | Lead Manager | (212) 778-5420 |
| Salomon Brothers Inc. | Co-manager | (212) 783-2947 |
| Issuer's Law Firm: | Baker & McKenzie |
| Bank's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | Harris Trust & Savings Bank |
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 | ||
| 6/30/96 | 3/31/97 | 3/31/96 | 3/31/97 | ||
| Revenue: | $131.07 | $247.21 | $82.41 | Assets: | $73.88 |
| Net Income: | $4.91 | $7.74 | $2.54 | Curr Assets: | |
| EPS: | $0.35 | $0.46 | $0.19 | Liabilities: | $51.23 |
| Prior EPS: | -$0.49 | $0.43 | Curr Liabilities: | ||
| Cash Flow/Oper: | -$10.77 | Equity: | $22.65 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a leading direct marketer of personal computers. To date, the company has developed, manufactured, sold and supported a broad line of custom-configured Macintosh-compatible desktop computer systems which employ modular designs based, to the extent possible, on Wintel industry standard components. The company intends to expand its leading position in the Macintosh-compatible market and to promote the growth of the Macintosh platform price/performance leaders. The company is also planning to broaden its product portfolio to include Wintel desktop and portable computer systems, as well as Microsoft Windows NT based server products that will jointly support Machintosh and Wintel connectivity. The company promotes its products through a targeted marketing strategy and an integrated media approach, which includes marketing its products directly to customers through its website, placing advertisements in computer trade magazines, direct mailings and company catalogs. |
| Competition |
| The PC industry in general, and the market for the company's current and planned future products in particular, are highly competitive and characterized by the frequent introduction of new products, short product life cycles, a large number of competitors, continual improvement in product performance, features and price and price sensitivity on the part of customers. The combination of an environment of rapid technological changes, short product life cycles and competitive pressures results in gross margins on specific products decreasing rapidly. Accordingly, any delay in introduction of more advanced or more cost-effective products can result in significantly lower sales and gross margins. These factors have in the past and will likely continue in the future to create pricing pressures on the company's products and downward pressures on the company's gross margins, and the company expects that its current gross margins will decline in future quarters as a result of such pressures. Other competitive factors include availability of new technology, marketing and sales ability, brand recognition, breadth of product line, ease of use and quality of customer support. |
| Business Plan |
| The company's objective is to strengthen its position as a leading direct marketer of PCs by offering a portfolio of innovative personal computing products that are price/performance leaders. Key elements of the company's business strategy include: (I) Leverage its direct marketing expertise, (ii) Offer innovative Macintosh technology to its customers at competitive prices, (iii) Identifying and targeting certain market segments and (iv) Introduce Wintel products. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to reduce borrowings under its credit facility, to fund the company's initial development, manufacture and marketing of its Wintel computer systems, and for working capital and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Elserino M. Piol | 34.60% | 28.80% |
| Giuliano C. Raviola | 33.10% | 27.50% |
| 4C Ventures, L.P. | 32.80% | 27.20% |
| Stephen S. Kahng | 25.60% | 21.20% |
| Officer Name | Title | Age |
| Stephen S. Kahng | Chariman of the Board, Chief Executive Officer and Director | 47 |
| James A. Wallace | Chief Financial Officer and Vice President, Finance | 51 |
| John W. Teets | Corporate Secretary | 42 |
| Sada Chidambaram | Director | 52 |
| Giuliano C. Raviola | Director | 65 |
| Elserino M.Piol | Director | 64 |
| David Heller | Director | 52 |
| Joel J. Kocher | President, Chief Operating Officer and Director | 41 |
| Song S. Kim | Treasurer | 42 |
| Enzo N. Torresi | Vice Chairman of the Board, Director | 52 |