| GlobalCenter, Inc. | |||
| Proposed Ticker: | GCTR | 1154 East Arques Avenue | |
| Exchange: | NASDAQ-National Market | Sunnyvale, CA 94086 | |
| Industry: | Service (SIC Code 4813) | (408) 328-6000 | |
| # of Employees: | 216 | ||
| Type of Shares: | Common Shares | Filing Date: | 10/16/97 | |
| U.S. Shares Filed: | 0 | Filing Price: | - | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $34,500,000 | |
| Primary Shares: | 0 | Expenses: | - | |
| Secondary Shares: | 0 | Shares Out After: |
| Manager | Tier | Phone |
| Hambrecht & Quist Incorporated | Lead Manager | (415) 439-3626 |
| Volpe Brown Whelan & Company | Co-manager | (415) 274-4463 |
| Issuer's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Bank's Law Firm: | Cooley Godward Castro Huddleson & Tatum |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | American Securities Transfer, Inc |
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: | $12.95 | $9.97 | $5.48 | Assets: | $14.28 |
| Net Income: | -$19.74 | -$5.91 | $0.09 | Curr Assets: | $4.19 |
| EPS: | Liabilities: | $12.74 | |||
| Prior EPS: | -$4.81 | $1.40 | Curr Liabilities: | $9.80 | |
| Cash Flow/Oper: | $1.65 | $1.56 | $0.99 | Equity: | $1.53 |
| Cash Flow/Fin: | $7.47 | -$2.68 | -$2.27 | Cash: | $0.53 |
| Cash Flow/Inv: | -$2.70 | -$2.68 | Working Cap: | -$5.61 | |
| Business Description |
| The company is a leading provider of digital distribution services to organizations conducting business over the Internet, including some of the world's premier content providers. The company�s scalable, comprehensive Digital Distribution solution is a combination of proprietary software technology, content management services, multiple Media Distribution Centers and public and private peering arrangements. According to Zona Research, the number of Internet users worldwide is expected to increase from an estimated 38 million in 1996 to 206 million by the year 2000. The company currently manages over one billion page views per month, over 100 million content requests per day and up to 250,000 software package downloads per day. The company's customers include Yahoo!, Inc., Netscape Communications Corp., Playboy Enterprises, Inc., Cox Interactive and SOFTBANK Interactive Marketing. |
| Competition |
| The market for Internet content distribution and connectivity is extremely competitive. There are no substantial barriers to entry and the Company expects that competition will intensify in the future. The Company's ability to compete successfully will depend on a number of factors, including market presence, reliability, performance, technical expertise and functionality, pricing policies of competitors, the timing of introductions of new products and services, customer support, the variety of services offered, sales and marketing activities and industry and general economic trends. Many companies provide products or services that compete, directly or indirectly, with the Company's products and services, including: (i) web hosting and data warehousing companies; (ii) in-house MIS departments; (iii) connectivity providers, including ISPs such as BBN Corporation, Earthlink Network, Inc., MindSpring Enterprises, Inc., Netcom On-Line Communications Services, Inc. and PSInet Inc.; RBOCs; long distance inter-exchange carriers, including AT&T;, MCI, Sprint and WorldCom; and (iv) content management companies, including on-line service providers such as AOL and CompuServe. |
| Business Plan |
| The Company's objective is to become the leading provider of Digital Distribution services to the world's premier content providers, businesses utilizing the Internet for mission-critical applications and small to medium- sized businesses. To achieve this goal, the Company has implemented a business strategy focused on the following key principles: (I) Provide Comprehensive Digital Distribution Solutions, (ii) Increase Services to Existing Customers, (iii) Expand Customer Base, (iv) Leverage Relationships with Channel Partners, (v) Continue to Develop Products for Efficient Distribution of Content and (vi) Expand Internationally. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes including future acquisitions, facilities expansion, repayment of debt, working capital and capital expenditures. |
| Name of Shareholder | % Owned Before | % Owned After |
| Entities Affiliated with SOFTBANK | 23.40% | |
| Michael Moritz | 17.20% | |
| Entities Affiliated with Sequoia Capital | 17.20% | |
| Nathan F. Raciborski | 12.00% | |
| William C. Foss | 10.20% | |
| John Hummer | 10.10% | |
| Entities Affiliated with Hummer | 10.10% | |
| Dan M. Rasmussen | 10.00% | |
| Allan M. Kaplan | 9.50% |
| Officer Name | Title | Age |
| Doulgas T. Hickey | President, Chief Executive Officer and Director | 42 |
| Nathan F. Raciborski | President, GlobalCenter Telecom Services | 30 |
| Jonathan G. Heiliger | Senior Vice President and Chief Technology Officer | 21 |
| William H. Rinehart | Senior Vice President and General Manager, Content Distribution | 33 |
| Wayne A. Pratt | Senior Vice President, finance and Administration, Chief Financial Officer and Secretary | 36 |
| Joel A. Davis, Sr. | Senior Vice President, International Operations | 35 |