| Omega Research, Inc. | |||
| Ticker: | OMGA | 8700 West Flagler Street | |
| Exchange: | NASDAQ-National Market | Miami, FL 33174 | |
| Industry: | High-Tech (SIC Code 7372) | (305) 551-9991 | |
| # of Employees: | 122 | ||
| Type of Shares: | Common Shares | Filing Date: | 7/25/97 | |
| U.S. Shares: | 3,700,000 | Offer Date: | 9/30/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $10.00 - $12.00 | |
| Primary Shares: | 2,600,000 | Offer Price: | $11.00 | |
| Secondary Shares: | 1,100,000 | Gross Spread: | $0.77 | |
| Offering Amount: | $40,700,000 | Selling: | $0.44 | |
| Expenses: | $650,000 | Reallowance: | $0.10 | |
| Shares Out After: | 22,080,000 |
| Manager | Tier | Phone |
| Robertson, Stephens & Company | Lead Manager | (415) 989-8500 |
| Hambrecht & Quist Incorporated | Co-manager | (415) 439-3626 |
| Lehman Brothers Incorporated | Co-manager | (212) 526-8100 |
| Issuer's Law Firm: | Rubin Baum Levin Constant & Friedman |
| Bank's Law Firm: | Hale and Dorr |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $17.82 | $14.62 | $8.11 | Assets: | $9.26 |
| Net Income: | $4.29 | $3.27 | $1.97 | Curr Assets: | $8.28 |
| EPS: | $0.21 | $0.15 | Liabilities: | $1.45 | |
| Prior EPS: | $2.71 | $2.53 | Curr Liabilities: | $1.45 | |
| Cash Flow/Oper: | $5.59 | -$1.96 | -$1.86 | Equity: | $7.81 |
| Cash Flow/Fin: | -$5.52 | -$0.63 | -$0.29 | Cash: | $0.26 |
| Cash Flow/Inv: | -$0.54 | -$0.63 | Working Cap: | $6.83 | |
| Business Description |
| The company is a leading provider of real-time investment analysis software for the Microsoft Windows operating system. The Company's principal products are TRADESTATION, OPTIONSTATION and SUPERCHARTS. With the 1991 release of its flagship product, TRADESTATION, the company pioneered the concept of utilizing the power of the personal computer to enable investors to historically test the profitability of their own investment and trading strategies and then computer-automate those strategies to generate real-time buy and sell signals. OPTIONSTATION enables investors who are not options experts or mathematicians to benefit from advanced stock, index and futures options trading strategies, and SUPERCHARTS provides investors with state-of-the-art technical analysis capabilities. The company designs its products as PLATFORM APPLICATIONS: unique software applications that also serve as platforms for independent third-party solutions. Over 150 independent developers have developed software products for the Omega Research Platform. |
| Competition |
| The market for investment analysis software is intensely competitive and rapidly changing. The Company believes that due to anticipated growth of the market for investment analysis software, and other factors, competition will substantially increase and intensify in the future. The Company believes its ability to compete will depend upon many factors both within and outside its control, including the timing and market acceptance of new products and enhancements developed by the Company and its competitors, product functionality, data availability, ease of use, pricing, reliability, customer service and support, sales and marketing efforts and product distribution channels. The Company believes that it currently competes favorably overall with respect to these factors. The Company faces direct competition from several publicly-traded and privately-held companies. The Company's principal competitors include AIQ, Aspen Graphics, Equis International, Inc. (Metastock), a subsidiary of Reuters, Market Arts, Inc. (Window on Wall Street) and TeleChart 2000. The Company also competes with investment analysis solutions available on the Internet, some of which are available for free. In addition, the Company faces competition from data vendors, all of which offer investment analysis software products, and which are the Company's existing and potentially future strategic partners. As a result, the Company must educate prospective customers as to the potential advantages of the Company's products, and continue to offer solutions not offered by major data vendors. There can be no assurance that the Company will be able to compete effectively with its competitors, adequately educate potential customers to the benefits that the Company's products provide, or continue to offer such software solutions. Many of the Company's existing and potential competitors, which include large, established software companies which do not currently focus on the investment analysis software market, have longer operating histories, significantly greater financial, technical and marketing resources, greater name recognition and a larger installed customer base than has the Company. One or more of these competitors may be able to respond more quickly to new or emerging technologies or changes in customer requirements, or to devote greater resources to the development, promotion and sale of their products than may the Company. There can be no assurance that the Company's existing or potential competitors will not develop products comparable or superior to those developed by the Company or adapt more quickly than the Company to new technologies, evolving industry trends or changing customer requirements. Increased competition could result in price reductions, reduced margins or loss of market share, any of which could materially adversely affect the Company's business, results of operations and financial condition. There can be no assurance that the Company will be able to compete successfully against current or future competitors, or that competitive pressures faced by the Company will not have a material adverse effect on its business, results of operations and financial condition. |
| Business Plan |
| The company's objective is to establish itself as the leading worldwide provider of real-time investment analysis software to both individual and institutional investors. The company's strategy includes the following key elements: (I) Enhance and Expand the Omega Research Platform, (ii) Continue to Penetrate Expanding Individual Investor Market, (iii) Focus on the Institutional Investor Market, (iv) Strengthen Data Vendor Alliances, (v) Expand International Distribution and (vi) Leverage Installed Base of Customers. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay a short term bank loan used to fund payment of a distribution of S Corporation earnings to the company's current shareholders; working capital and other general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| William R. Cruz | 50.00% | 41.60% |
| Ralph L. Cruz | 50.00% | 41.60% |
| Officer Name | Title | Age |
| Ralph L. Cruz | Co-Chairman of the Board and Co-Chief Executive Officer | 33 |
| William R. Cruz | Co-Chairman of the Board, Co-Chief Executive Officer and President | 36 |
| Marc J. Stone | Vice President of Corporate Planning and Development, General Counsel, Secretary and Director | 36 |
| Salomon Sredni | Vice President of Operations, Chief Financial Officer, Treasurer and Director | 30 |
| Peter A. Parandjuk | Vice President of Product Development and Director | 35 |