| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies | Company's Home Page |
| Sonic Foundry, Inc. |
| 754 Williamson Street, Madison, WI 53703 * (608) 256-3133 |
| The company is a leading provider of personal computer based software products that enable users to easily work with and edit digital media. |
| Manager | Tier | Phone |
| Dirks & Company, Inc. | Lead Manager | |
| Security Capital Trading Corp. | Co-manager |
| AMEX: | SFO | High-Tech: | SIC 7372 | |
| Type of Shares: | Common Shares | Filing Date: | 2/10/98 | |
| U.S. Shares: | 2,000,000 | Offer Date: | 4/21/98 | |
| Non-U.S. Shares: | 0 | Filing Price: | $7.50 | |
| Primary Shares: | 2,000,000 | Offer Price: | $7.50 | |
| Secondary Shares: | 0 | Gross Spread: | $0.75 | |
| Offering Amount: | $15,000,000 | Selling: | $0.00 | |
| Expenses: | $500,000 | Reallowance: | $0.00 | |
| Post-IPO Shares: | 2,368,060 | |||
| Employees: | 43 |
| Issuer's Law Firm: | McBreen, McBreen & Kopko |
| Bank's Law Firm: | Orrick, Herrington & Sutcliffe |
| Registrar/Transfer Agent: | Continental Stock Transfer & Trust Co |
| Auditor: | Ernst & Young |
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: | $2.44 | $2.24 | $1.62 | Assets: | $2.33 |
| Net Income: | $0.18 | -$0.84 | $0.22 | Curr Assets: | $0.68 |
| EPS: | $0.08 | -$1.11 | $0.27 | Liabilities: | $1.26 |
| Prior EPS: | $0.07 | Curr Liab: | $0.95 | ||
| Cash Flow/Oper: | $0.18 | -$0.32 | $0.29 | Equity: | $1.08 |
| Cash Flow/Fin: | $0.81 | $1.24 | $0.19 | Cash: | $0.11 |
| Cash Flow/Inv: | -$0.56 | -$1.25 | -$0.36 | Working Cap: | -$0.26 |
| Competition |
| The markets for the Company's products are intensely competitive. Pricing pressure, rapid development, feature upgrades, and undefined new technologies characterize the industry. Numerous companies including Adaptec, Avid, Cakewalk, Creamware, Digidesign, Euphonix, InSync, Sonic Solutions, and Steinberg offer products which compete directly or indirectly with one or more of the Company's own products, although none of these companies can independently offer a matching product line which competes one for one with the Company's own product line. Most of the Company's competitors or potential competitors have significantly greater financial, management, technical and marketing resources than the Company. The Company could also face future competition from Microsoft, Adobe, Macromedia, Autodesk, or Oracle. Each of these potential competitors has substantially greater resources than the Company and could become a significant competitor. The primary factors on which the Company competes are system independence, quality, pricing, product features, cross-platform file support, brand marketing, and customer support. The relative importance of each factor is dependent on the market and customer group targeted. The Company believes it competes favorably with respect to these factors, but there can be no assurance that it will continue to do so. |
| Business Plan |
| The Company's objective is to be the leading digital-based media software company to every industry and market in which the Company competes. To achieve this objective, the Company's strategy includes the following key elements: (I) Extend Technology Leadership; (ii) Maximize Market Penetration and Brand Recognition; Leverage Market Position to Expand Model and (iii) Strengthen Strategic Relationships. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for development of new products and the enhancement of existing products, capital expenditures, sales and marketing, working capital and general corporate purposes. |
| # of Units: | 2,000,000 | |||
| Unit Ticker: | - | Unit Price: | $15.00 | |
| Warrant Ticker: | SFOW | Warrant Price: | $0.10 | |
| Warrant Exercise Date: | Warrant Exercise Price: | |||
| Warrant Expiration Date: | ||||
| Warrant Detachable: | Yes | Warrant Detach Date: | ||
| Warrant Callable: | No |
| Unit Composition: 2 Common Shares + 1 Warrant |
| Warrant Entitlement: 1 Common Share |