| International Manufacturing Services, Inc. | |||
| Ticker: | IMSX | 2071 Concourse Drive | |
| Exchange: | NASDAQ-National Market | San Jose, CA 95131 | |
| Industry: | High-Tech (SIC Code 3672) | (408) 953-1000 | |
| # of Employees: | 2257 | ||
| Type of Shares: | Class A Common Shares | Filing Date: | 8/28/97 | |
| U.S. Shares: | 5,000,000 | Offer Date: | 10/21/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $10.00 - $12.00 | |
| Primary Shares: | 5,000,000 | Offer Price: | $11.50 | |
| Secondary Shares: | 0 | Gross Spread: | $0.81 | |
| Offering Amount: | $55,000,000 | Selling: | $0.47 | |
| Expenses: | $100,000 | Reallowance: | $0.10 | |
| Shares Out After: | 18,327,500 |
| Manager | Tier | Phone |
| Montgomery Securities | Lead Manager | (415) 627-2100 |
| Alex. Brown & Sons Incorporated | Co-manager | (410) 895-2700 |
| UBS Securities Inc. | Co-manager | (212) 821-4510 |
| Issuer's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Bank's Law Firm: | Howard, Rice, Nemerovski, Canady, Robertson, Falk |
| Auditor: | Price Waterhouse |
| 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 | ||
| 3/31/97 | 7/31/97 | 4/30/96 | 7/31/97 | ||
| Revenue: | $169.69 | $64.74 | $47.41 | Assets: | $70.81 |
| Net Income: | -$0.60 | $2.08 | -$4.33 | Curr Assets: | $52.09 |
| EPS: | -$0.04 | $0.13 | -$0.27 | Liabilities: | $79.34 |
| Prior EPS: | $3.16 | -$5.31 | Curr Liabilities: | $46.55 | |
| Cash Flow/Oper: | $6.74 | -$1.69 | $7.07 | Equity: | -$8.54 |
| Cash Flow/Fin: | $7.20 | -$2.49 | -$0.36 | Cash: | $1.81 |
| Cash Flow/Inv: | -$12.09 | -$2.49 | Working Cap: | $5.54 | |
| Business Description |
| The company provides electronics manufacturing services to original equipment manufacturers primarily in the computer peripherals, data communications and telecommunications markets. The Company's services include product design, prototyping, printed circuit board ("PCB") assembly, final system assembly, materials procurement, inventory management, testing, packaging, distribution and depot repair. The Company combines its manufacturing experience and operational infrastructure in Asia with its design, prototype and manufacturing capabilities in the United States to provide cost-effective, flexible EMS solutions to its customers. The Company maintains its materials procurement operations in Hong Kong to be near low cost suppliers and conducts volume manufacturing operations in Thailand and China to access low cost labor, reduce overhead and take advantage of certain local tax benefits. |
| Competition |
| The electronics assembly and manufacturing industry is intensely competitive and consists of numerous local, national and international companies, a number of which have achieved substantial market share. The Company believes that the primary competitive factors in its targeted markets are cost, manufacturing technology, product quality, responsiveness and flexibility, the range of services provided and the location of facilities. To be competitive, the Company must provide technologically advanced manufacturing services, high product quality levels, flexible delivery schedules and reliable delivery of finished products on a timely and price competitive basis. Failure to satisfy any of the foregoing requirements could materially and adversely affect the Company's competitive position. The Company competes against numerous domestic and foreign manufacturers, including Flextronics International Ltd., Jabil Circuits, Inc., Sanmina Corporation, SCI Systems, Inc., Solectron Corporation, as well as certain large Asia-based companies. The Company also faces indirect competition from the manufacturing operations of its current and prospective customers, which continually evaluate the merits of manufacturing products internally compared to the use EMS providers. Many of the Company's competitors have more geographically diversified international operations, as well as greater manufacturing, financial, volume procurement, research and development and marketing resources than the Company. In recent years, the EMS industry has attracted new entrants, including large OEMs with excess manufacturing capacity, and many existing participants have substantially expanded their manufacturing capacity by expanding their facilities and adding new facilities through both internal expansion and acquisitions. In the event of a decrease in overall demand for EMS services, this increased capacity could result in substantial pricing pressures, which could have a material adverse effect on the Company's business, financial condition or operating results. |
| Business Plan |
| The company's objective is to strengthen its position as a leading provider of advanced, cost-effective, integrated electronics manufacturing services to OEMs in the electronics industry. To achieve this objective, the company is pursuing the following strategies: (I) Provide Advanced, Cost-Effective EMS Solutions, (ii) Diversify Customer Base, (iii) Provide a Broad Range of Manufacturing Services, (iv) Accelerate Customers' Time to Market and Time to Volume and (iv) Leverage International Manufacturing Capabilities. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay debt, for capital expenditures and for general corporate purposes including working capital. |
| Name of Shareholder | % Owned Before | % Owned After |
| Prudential Private Equity Investors III, L.P. | 34.00% | 24.70% |
| Entitites associated with Oak Investment Parnters VI, L.P. | 28.20% | 20.50% |
| Maxtor Corporation | 22.40% | 16.30% |
| Entities associated with Brinson Partners, Inc. | 5.80% | 4.20% |
| Robert G. Behlman | 5.40% | 3.90% |
| Officer Name | Title | Age |
| Robert G. Behlman | President, Chief Executive Officer and Chairman of the Board | 53 |
| Nathan Kawaye | Senior Vice President and Chief Financial Officer | 44 |
| Gary M. Workman | Senior Vice President, Business Development | 51 |
| Neo Kia Quek | Senior Vice President, Manufacturing Operations | 50 |
| Muder Kothari | Vice President, and General Manager, United States Operations | 43 |
| Iris Grable | Vice President, Marketing and Business Development | 48 |
| Anthony Pham | Vice President, Sales and Customer Support | 37 |