| USWeb Corporation | |||
| (www.usweb.com) | |||
| Proposed Ticker: | USWB | 2880 Lakeside Drive, Suite 350 | |
| Exchange: | NASDAQ-National Market | Santa Clara, CA 95054 | |
| Industry: | High-Tech (SIC Code 7373) | (408) 987-3200 | |
| # of Employees: | 316 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/30/97 | |
| U.S. Shares Filed: | 0 | Filing Price: | - | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $63,250,000 | |
| Primary Shares: | 0 | Expenses: | - | |
| Secondary Shares: | 0 | Shares Out After: |
| Manager | Tier | Phone |
| Hambrecht & Quist Incorporated | Lead Manager | (415) 439-3626 |
| Donaldson, Lufkin & Jenrette Securities Corp. | Co-manager | (212) 371-0641 |
| First Albany Corporation | Co-manager | (518) 447-8641 |
| Wessels, Arnold & Henderson | Co-manager | (612) 373-6105 |
| Issuer's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Bank's Law Firm: | Morrison & Foerster |
| Auditor: | Price Waterhouse |
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: | $0.00 | $2.94 | $0.00 | Assets: | $20.31 |
| Net Income: | -$13.81 | -$21.24 | -$5.20 | Curr Assets: | $11.26 |
| EPS: | -$0.54 | -$0.82 | -$0.20 | Liabilities: | $7.70 |
| Prior EPS: | -$8.78 | -$4.05 | Curr Liabilities: | $7.21 | |
| Cash Flow/Oper: | -$10.59 | $17.15 | $10.85 | Equity: | $12.61 |
| Cash Flow/Fin: | $17.72 | -$2.25 | -$0.77 | Cash: | $9.33 |
| Cash Flow/Inv: | -$3.91 | -$2.25 | Working Cap: | $4.05 | |
| Business Description |
| The company is a leading Internet professional services firm that provides Intranet, Extranet and Web site solutions and services to medium-sized and large companies. International Data Corporation estimates that the worldwide market for Internet professional services was $2.5 billion in 1996 and will grow to $13.8 billion in 2000. To take advantage of the opportunity presented by this market, the Company has invested substantial time and resources to establish a national network of consulting offices. Because of this investment, the Company believes it has built one of the most recognized brands for Internet professional services and developed a highly scalable organization that can leverage central resources as its operations expand through acquisitions as well as internal growth. The Company has developed and is aggressively pursuing an acquisition program that uses a consistent methodology designed to efficiently identify, acquire and integrate qualified Internet professional services firms. The Company offers a comprehensive range of services to deliver Internet solutions designed to improve clients' business processes. |
| Competition |
| The market for Internet professional services is relatively new, intensely competitive, rapidly evolving and subject to rapid technological change. The Company expects competition to persist, intensify and increase in the future. The Company's competitors can be divided into several groups: computer hardware and service vendors such as IBM, DEC and Hewlett-Packard; advertising and media agencies such as CKS, Foote, Cone & Belding and Ogilvy & Mather; Internet integrators and Web presence providers such as Organic Online, Poppe Tyson and Proxicom; large information technology consulting service providers such as Andersen Consulting, Cambridge Technology Partners and EDS; telecommunications companies such as AT&T; and MCI; Internet and online service providers such as America Online, NETCOM and UUNet; and software vendors such as Lotus, Microsoft, Netscape, Novell and Oracle. Although only a few of these competitors have to date offered a full range of Internet professional services, several have announced their intention to offer comprehensive Internet technology solutions. The Company believes that the principal competitive factors in its market are strategic expertise, technical knowledge and creative skills, brand recognition, reliability of the delivered solution, client service and price. Most of the Company's current and potential competitors have longer operating histories, largerinstalled client bases, longer relationships with clients and significantly greater financial, technical, marketing and public relations resources than the Company and could decide at any time to increase their resource commitments to the Company's market. In addition, the market for Internet solutions is relatively new and subject to continuing definition, and, as a result, the core business of certain of the Company's competitors may better position them to compete in this market as it matures. Competition of the type described above could materially adversely affect the Company's business, results of operations and financial condition. There are relatively low barriers to entry into the Company's business. For example, the Company has no patented technology that would preclude or inhibit competitors from entering the Internet professional services market. The Company expects that it will face additional competition from new entrants into the market in the future. There can be no assurance that existing or future competitors will not develop or offer services that provide significant performance, price, creative or other advantages over those offered by the Company, which could have a material adverse effect on the Company's business, results of operations and financial condition. |
| Business Plan |
| The Company's objective is to become and remain the leading global Internet professional services firm. The Company's strategy to achieve this objective includes the following elements:(I) Continue to Expand Network of Company-Owned Offices, (ii) Strengthen Position as a Leading Internet Professional Services Firm, (iii) Internet solutions, (iv) Enhance USWeb Brand, (v) Develop Additional Strategic Relationships and (vi) Leverage Operational Economies of Scale. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes including working capital. |
| Name of Shareholder | % Owned Before | % Owned After |
| SoftVen No. 2 Investment Enterprise Partnership | 32.50% | |
| Jeffrey Ballowe | 32.50% | |
| Gary Rieschel | 32.50% | |
| Robert Hoff | 7.80% | |
| Joseph Firmage | 7.80% | |
| Crosspoint Venture Partners | 7.80% | |
| Barry Rubenstein | 6.70% | |
| The Cutler Group | 5.60% |
| Officer Name | Title | Age |
| Joseph Firmage | Chairman of the Board and Chief Executive Officer | 27 |
| Sheldon Laube | Executive Vice President and Chief Technology Officer | 47 |
| James Heffernan | Executive Vice President, Chief Financial Officer, Secretary and Director | 56 |
| Tobin Corey | President | 36 |