| Insync Systems, Inc. | |||
| Proposed Ticker: | INSY | 1463 Centre Pointe Drive | |
| Exchange: | NASDAQ-National Market | Milpitas, CA 95035 | |
| Industry: | Manufacturing | (408) 946-3100 | |
| # of Employees: | 324 | ||
| Type of Shares: | Common Shares | Filing Date: | 10/1/97 | |
| U.S. Shares Filed: | 0 | Filing Price: | - | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $39,000,000 | |
| Primary Shares: | 0 | Expenses: | - | |
| Secondary Shares: | 0 | Shares Out After: |
| Manager | Tier | Phone |
| BT Alex Brown | Lead Manager | (410) 727-1700 |
| PaineWebber Incorporated | Co-manager | (212) 713-2626 |
| Prudential Securities Incorporated | Co-manager | (212) 778-5420 |
| Issuer's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Bank's Law Firm: | Gunderson Dettmer Stough Villeneuve Franklin |
| Auditor: | Deloitte & Touche |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
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: | $86.10 | $34.68 | $59.45 | Assets: | $39.24 |
| Net Income: | -$6.51 | $0.31 | $4.82 | Curr Assets: | $23.27 |
| EPS: | -$0.87 | $0.03 | Liabilities: | $32.43 | |
| Prior EPS: | -$1.10 | $5.58 | Curr Liabilities: | $15.32 | |
| Cash Flow/Oper: | $7.53 | -$0.94 | $16.40 | Equity: | $6.82 |
| Cash Flow/Fin: | $14.28 | $0.14 | -$16.61 | Cash: | $0.93 |
| Cash Flow/Inv: | -$19.16 | $0.14 | Working Cap: | $7.95 | |
| Business Description |
| The company is a leading provider of outsourcing services to semiconductor equipment manufacturers for the design and manufacture of gas delivery systems and subassemblies. Gas delivery is a critical component of deposition, etch and other semiconductor process equipment. The Company believes its outsourcing services reduce its customers' total costs by shortening product delivery cycle times, reducing inventory and materials procurement costs, eliminating redundant work, enhancing information exchange and coordinating increasingly complex manufacturing and design processes. The Company's principal customers are Applied Materials, Inc., Lam Research Corporation, Watkins-Johnson Company and most recently, Novellus Systems, Inc., four major North American semiconductor equipment manufacturers. The Company offers a full range of gas delivery solutions, including subassemblies for integration into its customers' internally manufactured gas delivery systems and complete systems for incorporation into its customers' products at final assembly. Insync has recently introduced the Integrated Gas System (the "IGS"), a modular platform for gas delivery that is designed to simplify the specification, configuration, manufacturing and serviceability for gas delivery systems. |
| Competition |
| The Company believes that competition in the gas delivery market is intense and likely to increase substantially. Traditionally, gas delivery systems and subassemblies have been primarily manufactured internally by semiconductor equipment manufacturers. While these equipment manufacturers are significant customers or potential customers of the Company, companies including Applied Materials and Lam Research continue to produce significant quantities of gas delivery systems internally. For a variety of reasons, including any downturn or slowdown in the semiconductor equipment industry, there can be no assurance that semiconductor equipment manufacturers will not elect to utilize their internal manufacturing capacity to manufacture a greater percentage or all of their gas delivery requirements. The Company's competitors also include numerous privately and publicly held independent gas delivery providers, mass flow controller companies and others. The Company competes with these independent gas delivery providers, mass flow controller companies and other companies on the basis of an ability to: provide advanced system design and engineering services; offer adequate manufacturing capacity to meet customers' cycle time requirements; price competitively; provide outstanding equipment performance, reliability and quality; maintain sufficient financial resources; deliver superior customer service; and, support and maintain good relationships with customers and parts suppliers. The Company believes it presently competes favorably with respect to these factors. Other companies not currently offering such systems, including gas suppliers, may attempt to enter and develop products for this market or to develop alternative technologies which could reduce the need for the Company's products. The trend towards consolidation in the semiconductor equipment industry has made it increasingly important to have the financial resources and manufacturing capacity necessary to meet the requirements of large equipment manufacturers, to fund customer service and support, and to invest in both product and process research and development. Current and potential competitors may have substantially greater financial resources, name recognition and more extensive engineering, manufacturing, marketing and customer service and support capabilities than the Company. In addition, most of the Company's key customers have established relationships with one or more of the Company's competitors as additional or alternative providers, which the Company believes tends to further intensify competition and may limit the Company's ability to capture a greater percentage of a customer's outsourced gas delivery systems requirements. The Company expects its current competitors to continue to improve the design and performance of their existing products and processes, and to introduce new products and processes with improved performance characteristics and/or lower prices. New product introductions or product announcements by the Company's competitors could cause a decline in sales or loss of market acceptance of the Company's existing products. Moreover, such increased competitive pressure could lead to intensified price competition, 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 be the primary provider of outsourcing design and manufacturing services for gas delivery to leading semiconductor equipment manufacturers. To accomplish this objective, Insync seeks to develop and provide solutions which allow equipment manufacturers to fully outsource their gas delivery requirements and consistently satisfy their customers' demands for on-time delivery of reliable process equipment. To fulfill its objective, the Company intends to: (I) Extend Leadership in Gas Delivery, (ii)Expand Gas Delivery Systems Business, (iii) Strengthen Relationships with Customers and Suppliers, (iv) Leverage Manufacturing Capabilities and (v) Promote Modular Platform Approach. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of debt and for working capital and other general corporate purposes. |