| InterVU, Inc. | |||
| Ticker: | ITVU | 201 Lomos Santa Fe Drive | |
| Exchange: | NASDAQ-National Market | Solana Beach, CA 92075 | |
| Industry: | High-Tech (SIC Code 7371) | (619) 350-1600 | |
| # of Employees: | 34 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/13/97 | |
| U.S. Shares: | 2,000,000 | Offer Date: | 11/19/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $9.00 - $11.00 | |
| Primary Shares: | 2,000,000 | Offer Price: | $9.50 | |
| Secondary Shares: | 0 | Gross Spread: | $0.67 | |
| Offering Amount: | $20,000,000 | Selling: | $0.40 | |
| Expenses: | $850,000 | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Josephthal Lyon & Ross, Inc. | Lead Manager | (212) 907-4545 |
| Cruttenden Roth Incorporated | Co-manager | (800) 678-9147 |
| Issuer's Law Firm: | Latham & Watkins |
| Bank's Law Firm: | Orrick, Herrington & Sutcliffe |
| Auditor: | Ernst & Young |
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: | $0.00 | $0.03 | $0.00 | Assets: | $3.86 |
| Net Income: | -$2.28 | -$2.18 | -$0.71 | Curr Assets: | $3.48 |
| EPS: | Liabilities: | $2.28 | |||
| Prior EPS: | -$1.95 | -$0.64 | Curr Liabilities: | $0.25 | |
| Cash Flow/Oper: | -$2.06 | $3.06 | $2.01 | Equity: | $1.58 |
| Cash Flow/Fin: | $4.36 | -$0.16 | -$0.19 | Cash: | $3.45 |
| Cash Flow/Inv: | -$0.31 | -$0.16 | Working Cap: | $3.23 | |
| Business Description |
| The company is a specialized service company seeking to establish a leadership position in the Internet video delivery market. The company utilizes a proprietary software system for routing and distributing high quality video over the Internet. Unlike traditional Web site based video delivery solutions, the company's system moves the video delivery mechanism away from the owner's Web site and on to the company's network of specialized video servers strategically situated on the Internet. The InterVU Network allows the company to deliver video quickly to end-users and allows Web site owners and advertisers to provide video on the Internet without having to invest in costly hardware and software or to maintain a staff of employees with video delivery expertise. The company's target customers are the increasing number of Web site owners that seek a means of adding video presentations to their Web pages in an esily implemented and cost effective manny and advertisers that wish to incorporatevideo into bannersa dn other Internet advertisements. The company believes that multimeda-rich Web sites, capable of delivering high quality video content quickly to the end-user, can generate significant marketing differentiation and "top of mind" awareness in consumer buying decisions. |
| Competition |
| The market for Internet services is highly competitive, and the company expects competition to increase significantly. In addition, the company expects the market for the delivery of video over the Internet, to the extent it develops, to be intensely competitive. The company faces substantial competition from companies that provide the hardware, digital video encoding software and know-how necessary to allow Web site owners and advertisers to utilize video in their Internet marketing and advertising activities. Several companies offer services that compete with those offered by the company, including, among others, Progressive Networks, Inc. (RealVideo), VDOnet Corp. (VDOLive), and Vxtreme, Inc. (Web Theater), AudioNet Inc. (AudioNet) and At Home Corporation (@Home Experience). The bases of competition in markets for video delivery include transmission speed, reliability of service, ease of access, price/performance, ease-of-use, content quality, quality of presentation, timeliness of content, customer support, brand recognition and operating experience, both of which have been limited as a result of the company's early stage of development. However, many of the company's competitors and potential competitors have substantially greater financial, technical, managerial and marketing resources, longer operating histories, greater name recognition and/or more established relationships with advertisers and content and application providers than the company. |
| Business Plan |
| The company's objective is to leverage its technology and market focus to become a leading Internet video delivery company. The company's strategy includes the following key elements: (I) Achieve Significant Market Penetration, (ii) Maintain Technological Leadership, (iii) Offer Full-Service Approach to Video Delivery, (iv) Maintain Internet Connection Independence and (v) Build Brand Awareness. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for expansion of marketing and sales efforts, additional research and development expenditures, capital expenditures and working capital and other general corporate purposes. |
| Officer Name | Title | Age |
| Harry E. Gruber | Chairman, Chief Executive Officer and Chief Financial Officer | 45 |
| Marcia M. Berman | Secretary and Director | 42 |
| Brian Kenner | Vice President and Chief Technology Officer | 38 |
| Kenneth W. Colby | Vice President, Engineering | 48 |
| Douglas A. Augustine | Vice President, Marketing and Sales | 39 |
| Stephen Klein | Vice President, Sales | 34 |