| Hypercom Corporation | |||
| Ticker: | HYC | 2851 West Kathleen Road | |
| Exchange: | New York Stock Exchange | Phoenix, AZ 85023 | |
| Industry: | High-Tech (SIC Code 3578) | (602) 504-5000 | |
| # of Employees: | 827 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/12/97 | |
| U.S. Shares: | 11,250,000 | Offer Date: | 11/13/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $17.00 - $19.00 | |
| Primary Shares: | 8,500,000 | Offer Price: | $16.00 | |
| Secondary Shares: | 2,750,000 | Gross Spread: | $1.00 | |
| Offering Amount: | $202,500,000 | Selling: | $0.55 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | 33,500,000 |
| Manager | Tier | Phone |
| Lehman Brothers Incorporated | Lead Manager | (212) 526-8100 |
| Cowen & Company | Co-manager | (212) 495-6000 |
| Salomon Brothers Inc. | Co-manager | (212) 783-2947 |
| Issuer's Law Firm: | Snell & Wilmer |
| Bank's Law Firm: | Morrison & Foerster |
| Auditor: | Coopers & Lybrand |
| Registrar/Transfer Agent: | Harris Trust Company of California |
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: | $196.74 | Assets: | $138.74 | ||
| Net Income: | $15.56 | Curr Assets: | $120.96 | ||
| EPS: | $0.57 | Liabilities: | $77.85 | ||
| Prior EPS: | $0.32 | Curr Liabilities: | $58.01 | ||
| Cash Flow/Oper: | $3.19 | Equity: | $60.89 | ||
| Cash Flow/Fin: | $4.00 | Cash: | $16.32 | ||
| Cash Flow/Inv: | -$6.03 | Working Cap: | $62.95 | ||
| Business Description |
| The company is a leading worldwide developer, manufacturer and supplier of high performance, comprehensive point-of-sale payment systems and sophisticated enterprise networking products. The Company's end-to-end POS payment system solutions, comprised of terminals, peripherals, POS network products and software, enable merchants to automate credit, charge, debit and other electronic payment transactions, all with seamless integration and interoperability and at a lower total cost of ownership. The Company has the second largest installed base of POS terminals in the U.S. and worldwide, and the largest installed base in Latin America and Asia/Pacific. Leveraging nearly 20 years of expertise with POS networks, the Company has developed a family of multi-service switch/routers that enable the integration of business-critical legacy data, local area network ("LAN"), voice, fax and video traffic transmitted among central and remote locations. The Company's networking products allow its customers to eliminate duplicative networks and facilitate migration to cost-effective switched services. |
| Competition |
| The markets in which the Company operates are highly competitive and are becoming increasingly competitive. Principal competitive factors include product quality, reliability, performance, functionality,pricing, certification, and upgradeability. In the electronic payment industry the Company competes primarily against VeriFone, Inc., which was recently acquired by Hewlett-Packard Company, and in the enterprise networking market competes with Cisco Systems, Inc., 3Com Corporation, Bay Networks, Inc., Motorola Information Systems Group, and other providers. Certain of the Company's competitors have significantly greater financial and technical resources than the Company, as well as better name recognition and a larger customer base than the Company. The Company faces additional competitive factors in foreign countries, including preferences for national vendors, and difficulties in obtaining necessary certifications and in meeting the requirements of government policies. Competitive factors may result in, among other things, price discounts or other concessions by the Company and sales lost by the Company to competitors, which could have a material adverse effect on the Company's business, operating results and financial condition. There can be no assurance that the Company will be able to compete successfully in the future. |
| Business Plan |
| The Company's objective is to become the leading worldwide provider and innovator of POS payment system solutions. In addition, the Company is leveraging the extensive technical capabilities of its networking and software products to become a leading supplier in the enterprise networking market, particularly for branch networking applications. To achieve these objectives, the Company is pursuing the following key strategies: (I) Extend Technology Leadership, (ii) Exploit International Expertise, (iii) Capitalize on Retooling of POS Payments Infrastructure, (iv) Provide Complete End-to-end POS Payment Systems, (v) Leverage POS Network Expertise Into Branch Networking and (vi) Enhance Brand Awareness Through Increased Marketing and Distribution. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay debt, to expand facilities and for general corporate purposes including working capital, capital expenditures and possible acquisitions. |
| Name of Shareholder | % Owned Before | % Owned After |
| George Wallner | 50.60% | 34.20% |
| Paul Wallner | 44.00% | 29.30% |
| Al Irato | 5.90% | 3.40% |
| Officer Name | Title | Age |
| George Wallner | Chairman of the Board of Directors | 46 |
| Thomas E. Linnen | Chief Financial Officer of the Company | 51 |
| Jairo Gonzalez | Vice Chairman of the Board of Directors of the company and President of Hypercom International | 35 |
| Paul Wallner | Vice Chairman of the Board of Directors of the Company and President of Hypercom Network Systems | 43 |
| Albert A. Irato | Vice Chairman of the Board of Directors, Chief Executive Officer and President of the Company and Chief Executive Officer and President of Hypercom U.S.A., Inc. | 59 |