| UBICS, Inc. | |||
| Proposed Ticker: | UBIX | 100 Sainte Claire Plaza 1121 Boyce Road | |
| Exchange: | NASDAQ-National Market | Pittsburgh, PA 15241 | |
| Industry: | High-Tech (SIC Code 7371) | (412) 941-1800 | |
| # of Employees: | 141 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/8/97 | |
| U.S. Shares Filed: | 2,000,000 | Filing Range: | $9.00 - $11.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $20,000,000 | |
| Primary Shares: | 1,500,000 | Expenses: | $500,000 | |
| Secondary Shares: | 500,000 | Shares Out After: | 6,500,000 |
| Manager | Tier | Phone |
| Parker/Hunter Incorporated | Lead Manager | (412) 562-8222 |
| Scott & Stringfellow, Inc. | Co-manager | (804) 780-3267 |
| Issuer's Law Firm: | Cohen & Grigsby, P.C. |
| Bank's Law Firm: | Buchanan Ingersoll |
| Auditor: | Arthur Andersen |
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: | $9.07 | $8.69 | $3.41 | Assets: | $4.88 |
| Net Income: | $0.22 | $0.68 | $0.04 | Curr Assets: | $4.81 |
| EPS: | $0.01 | $0.14 | $0.01 | Liabilities: | $3.97 |
| Prior EPS: | $0.04 | -$0.12 | -$0.01 | Curr Liabilities: | $3.98 |
| Cash Flow/Oper: | -$0.18 | $0.20 | $0.25 | Equity: | $0.91 |
| Cash Flow/Fin: | $0.30 | -$0.03 | -$0.02 | Cash: | $0.15 |
| Cash Flow/Inv: | -$0.02 | -$0.03 | Working Cap: | $0.83 | |
| Business Description |
| The company is a rapidly growing provider of information technology professional services to large and mid-sized organizations. UBICS provides its clients with a wide range of professional services in such areas as client/server design and development. UBICS' services are provided on a time-and-materials basis to client-managed projects, with UBICS IT professionals providing integral support as project team members. Since commencement of full operations in 1994, the Company's revenues have grown from $303,000 for 1994 to $9.1 million for 1996 and to $5.1 million for the quarter ended June 30, 1997. The Company attributes its growth in revenues in 1997 primarily to an increased focus on higher value-added services, particularly ERP package implementation and customization services. In the first six months of 1997, UBICS provided IT professional services to over 80 clients in a range of industries and locations. The Company's clients include Caterpillar, CompUSA, El Paso Natural Gas, Fruit of the Loom, Ralston Purina and The Hartford. UBICS' high standards for responsiveness and service quality promote growing client relationships and recurring revenues. The Company believes that its centralized, low-overhead operating model enables it to respond quickly to client demand for IT professional services. UBICS meets this demand through its employed IT professionals and its management of an extensive network of subcontractors. The Company currently has over 200 IT professionals deployed with its clients in the U.S. |
| Competition |
| The IT services industry is highly competitive and served by numerous national, regional and local firms, all of which are either existing or potential competitors of the Company. Primary competitors include participants from a variety of market segments, including "Big Six" accounting firms, systems consulting and implementation firms, applications software firms, service groups of computer equipment companies, general management consulting firms, contract programming companies and temporary staffing firms. Many of these competitors have substantially greater financial, technical and marketing resources and greater name recognition than the Company. In addition, there is a risk that clients may elect to increase their internal IT resources or limit the number of outside service providers to satisfy their applications solutions needs. The Company believes that the principal competitive factors in the IT services industry include the range of services offered, technical expertise, responsiveness to client needs, quality of service and perceived value. The Company believes that it competes favorably with respect to these factors. |
| Business Plan |
| UBICS' objective is to become a leading worldwide provider of IT services by continuing its record of growth. The Company's business strategies leverage the Company's strengths, distinguish UBICS from its competitors and position it to capitalize on market opportunities for growth. The key elements of these strategies are discussed below: Cultivate and Expand Client Base Attract and Retain High-Quality IT Professionals Leverage Centralized Low-Overhead Operating Model Provide ERP Software Services Continually Broaden Range of Services |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for expansion of existing operations, repayment of indebtedness and general corporate purposes including working capital. |
| Name of Shareholder | % Owned Before | % Owned After |
| Vijay Mallya | 94.70% | 66.70% |
| United Breweries Information Consultancy Services Ltd. | 94.70% | 66.70% |
| Officer Name | Title | Age |
| Vijay Mallya | Chairman | 41 |
| Manohar B. Hira | President and Director | 57 |
| O'Neil Nalavadi | Senior Vice President, Chief Financial Officer and Director | 37 |
| Babu Srinivas | Vice President--Finance, Accountin and Administration | 42 |