| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies | Company's Home Page |
| First Virtual Corporation |
| 3393 Octavius Drive, Suite 102, Santa Clara, CA 95054 * (408) 567-7200 |
| The company provides a high quality, cost effective video networking solution that integrates video with voice and data. |
| Manager | Tier | Phone |
| BancAmerica Robertson Stephens | Lead Manager | (415) 989-8500 |
| Hambrecht & Quist Incorporated | Co-manager | (415) 439-3626 |
| NASNTL: | FVCX | High-Tech: | SIC 3577 | |
| Type of Shares: | Common Shares | Filing Date: | 10/24/97 | |
| U.S. Shares: | 2,880,000 | Offer Date: | 4/30/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $12.00 - $14.00 | |
| Primary Shares: | 2,700,000 | Offer Price: | $13.00 | |
| Secondary Shares: | 180,000 | Gross Spread: | $0.00 | |
| Offering Amount: | $37,440,000 | Selling: | $0.00 | |
| Expenses: | $900,000 | Reallowance: | $0.00 | |
| Post-IPO Shares: | 14,931,100 | |||
| Employees: | 54 |
| Issuer's Law Firm: | Cooley Godward Castro Huddleson & Tatum |
| Bank's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Registrar/Transfer Agent: | American Securities Transfer, Inc |
| Auditor: | Price Waterhouse |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 12/31/96 | 9/30/97 | 9/30/96 | 9/30/97 | ||
| Revenue: | $12.09 | $11.12 | $8.15 | Assets: | $7.39 |
| Net Income: | -$2.24 | -$4.23 | -$2.00 | Curr Assets: | $6.08 |
| EPS: | -$0.17 | -$0.31 | -$0.15 | Liabilities: | $6.49 |
| Prior EPS: | Curr Liab: | $5.78 | |||
| Cash Flow/Oper: | -$4.40 | -$1.93 | -$2.52 | Equity: | $0.90 |
| Cash Flow/Fin: | $2.82 | $3.14 | $1.77 | Cash: | $1.51 |
| Cash Flow/Inv: | -$0.53 | -$0.38 | -$0.30 | Working Cap: | $0.30 |
| Competition |
| The video networking industry is becoming increasingly competitive. As an end-to-end high quality ATM-based video networking solution, First Virtual's products face actual and potential competition in different market segments. The Company's most direct competitors also currently offer video networking over ATM, including FORE Systems, Inc. ("FORE") and Newbridge Networks Corporation ("Newbridge"). The Company's video networking products also compete with systems based on other technologies, such as the ISDN-based video networking products offered by Madge Networks, N.V. ("Madge"). The Company's network infrastructure products, when sold by its distribution partners such as Bay Networks, are used to compete with ATM-based infrastructure products sold by companies such as Cisco Systems, Inc. ("Cisco") and 3Com Corporation ("3Com"). In the videoconferencing area, the Company's technology licensing agreement with IBM is intended to result in products which would compete with products sold by companies such as Newbridge in the high-end H.310 videoconferencing market. In video storage, the Company's V-Cache products face competition from companies which offer high-performance servers that can store video, such as Silicon Graphics, Inc. ("SGI"), Starlight Networks Inc. ("Starlight"), Sun Microsystems, Inc. ("Sun") and The Network Connection ("TNC"). In the video broadcast area, the Company's products may compete in the future with system and software products of companies which provide "streamed" video over IP/Ethernet networks, such as Optivision, Inc. ("Optivision") and Precept Software, Inc. ("Precept Software"). The Company faces potential competition from large companies which have products in related areas, such as Intel Corporation ("Intel")and Microsoft Corporation ("Microsoft"). The Company could encounter new competition if companies which distribute First Virtual's products, or whose videoconferencing equipment is used together with the Company's products, develop or acquire video networking technologies or products. There can be no assurance that the Company will be able to compete successfully in this environment. |
| Business Plan |
| First Virtual's strategy is to enhance its leadership position in high quality, cost-effective, video networking solutions for educational, corporate and government environments. The Company believes that high quality video over networks can enhance the efficiency with which organizations work and learn. The key elements of the Company's strategy are: (I) Extend leadership position in video networking, (ii) Extend technology base, (iii) Leverage and broaden strategic relationships, (iv) Maintain focus on large installations and (v) Expand global distribution presence. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of outstanding indebtedness, research and development activities, working capital and general corporate purposes. |
| Officer Name | Title | Age |
| Ralph Ungermann | Chief Executive Officer, President and Director | 55 |
| Allwyn Sequeira | Vice President, Engineering and Chief Technical Officer | 36 |
| James M. Nielsen | Vice President, Marketing | 38 |
| James O. Mitchell | Vice President, Operations and Chief Financial Officer | 52 |
| Alan J. McMillan | Vice President, Salses | 42 |