| Applied Films Corporation | |||
| Ticker: | AFCO | 6797 Winchester Circle | |
| Exchange: | NASDAQ-National Market | Boulder, CO 80301 | |
| Industry: | High-Tech (SIC Code 3674) | (303) 530-1411 | |
| # of Employees: | 232 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/10/97 | |
| U.S. Shares: | 1,900,000 | Offer Date: | 11/21/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $9.50 - $11.50 | |
| Primary Shares: | 500,000 | Offer Price: | $8.50 | |
| Secondary Shares: | 1,400,000 | Gross Spread: | ||
| Offering Amount: | $19,950,000 | Selling: | ||
| Expenses: | $400,000 | Reallowance: | ||
| Shares Out After: | 3,299,999 |
| Manager | Tier | Phone |
| Needham & Company | Lead Manager | (212) 705-0344 |
| D.A. Davidson & Co. | Co-manager | (406) 791-7206 |
| Issuer's Law Firm: | Varnum, Riddering, Schmidt & Howlett |
| Bank's Law Firm: | Cooley Godward Castro Huddleson & Tatum |
| Auditor: | Arthur Andersen |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 6/28/97 | 6/28/97 | ||||
| Revenue: | $34.05 | Assets: | $21.54 | ||
| Net Income: | $1.62 | Curr Assets: | $13.60 | ||
| EPS: | $0.56 | Liabilities: | $14.80 | ||
| Prior EPS: | -$0.38 | Curr Liabilities: | $8.06 | ||
| Cash Flow/Oper: | $4.04 | Equity: | $6.74 | ||
| Cash Flow/Fin: | -$2.31 | Cash: | $0.30 | ||
| Cash Flow/Inv: | -$1.70 | Working Cap: | $5.53 | ||
| Business Description |
| The company is a leader in thin film technology for the flat panel display industry. The company supplies thin film coated glass for use in lower information content displays, primarily liquid crystal displays and information content displays. The company believes that it is able to address a broad array of the FPD market through the combination of its thin film coated glass business and its coating equipment business. FPDs are found in a wide variety of consumer and industrial products, including cellular telephones, calculators, laptop computers, pagers, scientific instruments, televisions, video games, gasoline pumps, automotive instruments, point-of-sale terminals and a number of other electronic devices. Stanford Resources estimates that the worldwide market for FPDs will grow from approximately $12.0 billion in 1996 to $26.9 billion in 2002. |
| Competition |
| Competition in the market for thin film coated glass for FPDs is intense. Competition is based primarily on price and to a lesser extent on quality, delivery, and customer service. In addition, the Company believes the ability to anticipate shifts in the market and unmet customer needs for thin film coated glass features are important competitive factors. Although certain of the Company's potential competitors have considerably greater financial, technical, and sales and marketing resources than the Company, the Company believes that it competes favorably with respect to each of these factors. The Company is aware of approximately ten thin film coated glass competitors worldwide. Certain of these competitors are also manufacturers of thin glass required for thin film components and one is a user of thin film coated glass. These are large companies with significant research and development funding and extensive thin film technology background. All of the Company's principal thin film coated glass competitors are located outside the United States, primarily in Asia. Both Company suppliers and customers could, conceivably, vertically integrate to manufacture the products produced by the Company.In manufacturing thin film coating equipment, the Company competes against two established equipment manufacturers which are much larger than the Company: Ulvac Japan, Ltd. in Japan and Balzers Process Systems/Leybold AG (formerly Leybold AG) in Germany. Competition is based on performance and process technology, after sales support and service and price, and the Company believes it competes favorably with respect to each of these factors. Key performance and technology issues include technical capability, systems design, product uniformity, yields, target utilization and throughput. The Company is also the only major thin film coating equipment manufacturer that manufactures thin film coated glass for the FPD market. The Company believes the experience, expertise and synergy resulting from this provide it with a competitive advantage. |
| Business Plan |
| The company's objective is to be a leading provider of thin film solutions to the FPD industry. The following are key elements of the company's strategy to achieve this objective: (I) Leverage Technology and Process Leadership, (ii) Expand Thin Film Coating Equipment Business and (iii) Capture Increased Share of Thin Film Coated Glass Market. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay indebtedness incurred for investment in new production capacity and working capital and for general corporate purposes. |
| Officer Name | Title | Age |
| Thomas D. Schmidt | Chief Financial Officer | 42 |
| Thomas Edman | Chief Operating Officer and Executive Vice President | 35 |
| James A. Knister | Director, Chairman of the Board | 59 |
| Cecil Van Alsburg | Director, President, Chief Executive Officer | 60 |
| C. Richard Condon | Director, Vice President -- Engineering | 51 |
| John S. Chapin | Director, Vice President -- Research, Secretary | 56 |
| Roger Smith | Treasurer | 56 |
| Graeme Hennessey | Vice President -- Sales and Marketing | 59 |
| Mark Auble | Vice President-Operations -- Thin Film Coatings | 50 |