| Kofax Image Products, Inc. | |||
| Ticker: | KOFX | 3 Jenner Street | |
| Exchange: | NASDAQ-National Market | Irvine, CA 92618 | |
| Industry: | High-Tech (SIC Code 3577) | (714) 727-1733 | |
| # of Employees: | 151 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/28/97 | |
| U.S. Shares: | 2,000,000 | Offer Date: | 10/12/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $11.00 - $13.00 | |
| Primary Shares: | 1,300,000 | Offer Price: | $11.00 | |
| Secondary Shares: | 700,000 | Gross Spread: | $0.77 | |
| Offering Amount: | $24,000,000 | Selling: | $0.42 | |
| Expenses: | $800,000 | Reallowance: | $0.10 | |
| Shares Out After: | 5,294,258 |
| Manager | Tier | Phone |
| Needham & Company | Lead Manager | (212) 705-0344 |
| Unterberg Harris | Co-manager | (212) 572-8060 |
| Issuer's Law Firm: | Stradling, Yocca, Carlson & Rauth |
| Bank's Law Firm: | McCutchen, Doyle, Brown & Enersen |
| Auditor: | Deloitte & Touche |
| Registrar/Transfer Agent: | U. S. Stock Transfer Corporation |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 6/30/97 | 6/30/97 | ||||
| Revenue: | $29.27 | Assets: | $16.33 | ||
| Net Income: | $2.13 | Curr Assets: | $12.32 | ||
| EPS: | $0.50 | Liabilities: | $4.07 | ||
| Prior EPS: | Curr Liabilities: | $3.65 | |||
| Cash Flow/Oper: | $3.67 | Equity: | $12.25 | ||
| Cash Flow/Fin: | -$0.32 | Cash: | $5.40 | ||
| Cash Flow/Inv: | -$3.30 | Working Cap: | $8.68 | ||
| Business Description |
| The company develops and markets hardware and software products for the imaging and document management market. The company has two product lines, component application software and scanner enhancement products. The Company has increased its revenues every year since its founding in 1985 and believes that it is the leader in the image processing accelerator market it has historically served. The Company also believes that new products it has recently introduced, as well as products it plans to introduce in the next year, will significantly expand the size of the Company's addressable market. Document imaging systems improve efficiencies in paper intensive industries by converting paper documents into electronic images (a process called "capture") and managing the routing and storage of the document images. Examples of the beneficial use of document imaging include expediting loan application and insurance claim processing and speeding the processing of new drug applications to the FDA. According to International Data Corporation, software revenue for the imaging, workflow and document management industry was approximately $2.3 billion in 1996 and is projected to grow approximately 30% annually over the next four years. |
| Competition |
| The market for document image processing hardware and software components is highly competitive and is characterized by rapid changes in technology and frequent introductions of new platforms and features. The Company expects competition to increase as other companies introduce additional and more competitive products in the developing document image processing market. In its accelerator board and developer toolkit business, the Company competes primarily with a number of small private companies. In its Ascent business, to which the Company is a relative newcomer, Kofax competes indirectly against large suppliers of turnkey systems, as well as directly with other component software vendors, more of whom are expected to enter the market over the next few years. Some of the Company's existing and potential competitors in the application software segment of the document imaging market have larger technical staffs, greater brand name recognition and market presence, more established and larger marketing and sales organizations, and substantially greater financial resources than the Company. 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 the Company's business, operating results, cash flows and financial condition. |
| Business Plan |
| Kofax's primary growth strategy is to expand its addressable markets by developing new products that leverage its core image processing technologies. Expand Addressable Market for Component Software, Expand Addressable Market for Scanner Enhancement Products, Pursue Workgroup Scanning and Maintain and Expand Distribution Channels and Technical Support. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Aspen Venture Partners, L.P. | 26.60% | 14.60% |
| Alexander P. Cilento | 26.60% | 14.60% |
| Sigma Partners | 17.50% | 9.70% |
| Clifford L. Haas | 17.50% | 9.70% |
| Southern California Ventures | 15.40% | 8.50% |
| B. Allen Lay | 15.40% | 8.50% |
| Dean A. Hough | 9.40% | 7.10% |
| David S. Silver | 9.40% | 7.10% |
| Officer Name | Title | Age |
| David S. Silver | Chief Executive, President and Chairman of the Board | 39 |
| Dean A. Hough | Vice President, Engineering and Director | 39 |
| Ronald J. Fikert | Vice President, Finance, Chief Financial Officer and Secretary | 48 |
| Kevin Drum | Vice President, Marketing | 38 |
| Dennis Joyce | Vice President, Operations | 50 |
| Richard M. Murphy | Vice President, Sales | 50 |