| IPO Company Profile |
| SEC Filings | Peer IPO Companies |
| Optiva Corporation |
| 13222 S.E. 30th Street, Bellevue, WA 98005 * (425) 957-0970 |
| The company develops, manufactures and markets premium consumer oral care products offered under the Sonicare brand. The Sonicare power toothbrush is designed to utilize patented sonic technology to provide significant oral care benefits. |
| Manager | Tier | Phone |
| Hambrecht & Quist Incorporated | Lead Manager | (415) 439-3626 |
| PaineWebber Incorporated | Co-manager | (212) 713-2626 |
| Employees: | 468 | Manufacturing: | SIC 3845 | |
| Type of Shares: | Common Shares | Filing Date: | 5/12/98 | |
| U.S. Shares Filed: | 4,400,000 | Filing Range: | $15.00 - $17.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $70,400,000 | |
| Primary Shares: | 2,000,000 | Expenses: | $1,150,000 | |
| Secondary Shares: | 2,400,000 | Post-IPO Shares: | 18,674,440 |
| Issuer's Law Firm: | Perkins Coie |
| Bank's Law Firm: | Gunderson Dettmer Stough Villeneuve Franklin |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
| Auditor: | Ernst & Young |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 12/31/97 | 3/31/98 | 3/31/97 | 3/31/98 | ||
| Revenue: | $102.97 | $30.61 | $19.01 | Assets: | $50.76 |
| Net Income: | $11.35 | $2.58 | $1.31 | Curr Assets: | $44.02 |
| EPS: | $0.64 | $0.14 | $0.08 | Liabilities: | $19.51 |
| Prior EPS: | $0.35 | Curr Liab: | $17.59 | ||
| Cash Flow/Oper: | $10.37 | $5.06 | -$2.02 | Equity: | $31.25 |
| Cash Flow/Fin: | $0.96 | $0.71 | $0.25 | Cash: | $15.07 |
| Cash Flow/Inv: | -$3.43 | -$1.36 | -$0.78 | Working Cap: | $26.43 |
| Competition |
| The Company's SONICARE product line competes with products offered by a number of larger companies, including Gillette, manufacturer of the Braun Oral-B product line; Teledyne, manufacturer of the SenSonic sonic toothbrush; and Conair, manufacturer of the Interplak power toothbrush product line. The Company's principal competitors have substantially greater financial, manufacturing, marketing and technical resources, greater brand recognition, and larger manufacturing capacities than the Company. These advantages may afford the Company's competitors greater ability to manufacture large volumes of their products and achieve pricing advantages as a result of greater economies of scale, develop product innovations, expand distribution, compete for shelf space, reduce product prices and influence consumer buying decisions. In addition, the Company's competitors may be able to use their greater market standing and resources to exclude the Company's products from certain retailers' shelves. Most power toothbrush products currently are offered at prices substantially lower than the SONICARE products. Price reductions by competitors could result in downward pressure on the prices of the Company's products. There can be no assurance that the Company would be able to increase its sales volume or reduce its per unit costs under such circumstances while maintaining profitability. Competitive pressures also may lead to an increase in other sales-related expenses, including advertising and marketing costs. Furthermore, competitive price pressures may impair the Company's ability to raise prices in line with any increase in its distribution, promotional and manufacturing costs. The failure of the Company to respond to competitive pressures, particularly price competition, in a timely or effective manner would have a material adverse effect on the Company's business, operating results and financial condition. |
| Business Plan |
| Optiva's goal is to be a leading provider of premium-branded consumer oral care products recognized for technical superiority, efficacy and value. To achieve its goal, the Company is pursuing the following strategies: (I) Leverage Brand to Increase Retail Sales, (ii) Expand Support Among Dental Professionals, (iii) Develop Complementary Products and (iv) Develop International Opportunities. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of certain indebtedness, certain capital expenditures, working capital and other general corporate purposes, including expenditures in connection with the company's planned relocation of its office, manufacturing and research facilities. |