| Cascade Systems, Incorporated | |||
| Proposed Ticker: | CSCD | 300 Brickstone Square | |
| Exchange: | NASDAQ-National Market | Andover, MA 01810 | |
| Industry: | High-Tech (SIC Code 7373) | (978) 749-9700 | |
| # of Employees: | 108 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/24/97 | |
| U.S. Shares Filed: | 2,800,000 | Filing Range: | $9.00 - $11.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $28,000,000 | |
| Primary Shares: | 2,250,000 | Expenses: | $750,000 | |
| Secondary Shares: | 550,000 | Shares Out After: | 7,125,525 |
| Manager | Tier | Phone |
| BT Alex Brown | Lead Manager | (410) 727-1700 |
| Hambrecht & Quist Incorporated | Co-manager | (415) 439-3626 |
| Issuer's Law Firm: | Hale and Dorr |
| Bank's Law Firm: | Mintz, Levin, Cohn, Ferris, Glovsky And Popeo |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | Boston Equiserve Limited Partnership |
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: | $18.51 | $9.36 | $9.28 | Assets: | $6.93 |
| Net Income: | $0.09 | $0.23 | -$0.11 | Curr Assets: | $5.89 |
| EPS: | $0.02 | $0.04 | Liabilities: | $4.63 | |
| Prior EPS: | -$0.81 | $0.14 | Curr Liabilities: | $4.63 | |
| Cash Flow/Oper: | $0.08 | $0.02 | $1.96 | Equity: | $2.31 |
| Cash Flow/Fin: | $1.96 | -$0.16 | -$0.16 | Cash: | $2.07 |
| Cash Flow/Inv: | -$0.44 | -$0.16 | Working Cap: | $1.26 | |
| Business Description |
| The company designs, develops, markets and supports workflow and content management software solutions for newspapers, magazine and book publishers, commercial printers, retailers and other corporate publishers. The Company's DataFlow system manages the process of publishing information by providing content and data management, tracking, workflow and archiving functionality. The Company's MediaSphere system is designed to meet the archiving, search and retrieval needs of organizations dealing with large amounts of multimedia data. DataFlow and MediaSphere also are designed to permit access to and delivery of content over the Internet. The Company's newspaper customers include The Los Angeles Times, Newsday, The Miami Herald, The Mirror Group PLC (U.K.), The Boston Globe and The Daily Telegraph (U.K.). Other customers include magazine publishers such as The McGraw-Hill Companies, Inc. and Conde Nast Publications Inc., commercial printers such as Bowne & Co., Inc. and R.R. Donnelley & Sons Company, and retailers and catalog publishers including Amway Corporation and Val-Pak Direct Marketing Systems, Inc. |
| Competition |
| The market for software and services is very competitive, rapidly evolving and subject to rapid technological change. The Company believes that while it competes with no single organizationacross its entire product line, a variety of companies offer products which compete either with its DataFlow or MediaSphere systems. Autologic offers products competitive with DataFlow. Companies offering products competitive with MediaSphere include T/One, Inc., The Bulldog Group USA, Inc., Gannett Media Technologies International, a division of Gannett Company, Inc. and Archetype, Inc., a subsidiary of Bitstream Inc. Other potential competition may come from desktop publishing vendors such as Quark or Adobe who may in the future offer functionality competitive with the Company's products or from potential customers who elect to develop internally applications that provide the functionality of the Company's products, or obtain such functionality from third-party service bureaus. As the Company expands its target markets to include large organizations outside the publishing industry, it anticipates that it will encounter additional competitors. The Company believes that the principal competitive factors affecting its market include product features and functionalities, such as scalability, ease of integration, ease of implementation, ease of use, quality, performance, price, customer service and support, and effectiveness of sales and marketing efforts. Although the Company believes that it currently competes effectively with respect to such factors, there can be no assurance that the Company will be able to maintain its competitive position against current and potential competitors. |
| Business Plan |
| The company's objective is to become a leading supplier of comprehensive automated workflow and content management solutions for the publishing industry and other large organizations, building on its strong base in the newspaper and other publishing markets. The company's strategy incorporates the following key elements: (I) Extend Leadership in Core Market, (ii) Extend Functionality to Address New Technologies, (iii) Leverage Expertise to Broaden Markets and (iv) Expand Distribution Capabilities. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for working capital and general corporate purposes. |