| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies |
| Echelon Corporation |
| 4015 Miranda Avenue, Palo Alto, CA 94304 * (650) 855-7400 |
| The company develops, markets and supports a family of hardware and software products and services that enables original equipment manufacturers and systems integrators to design and implement open, interoperable, distributed control networks. |
| Manager | Tier | Phone |
| Nationsbanc Montgomery Securities, Inc. | Lead Manager | (415) 627-2100 |
| BancAmerica Robertson Stephens | Co-manager | (415) 989-8500 |
| Volpe Brown Whelan & Company | Co-manager | (415) 274-4463 |
| NASNTL: | ELON | Manufacturing: | SIC 3679 | |
| Type of Shares: | Common Shares | Filing Date: | 6/1/98 | |
| U.S. Shares: | 5,000,000 | Offer Date: | 7/27/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $7.00 - $9.00 | |
| Primary Shares: | 5,000,000 | Offer Price: | $7.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.49 | |
| Offering Amount: | $40,000,000 | Selling: | $0.25 | |
| Expenses: | $700,000 | Reallowance: | $0.10 | |
| Post-IPO Shares: | 32,125,612 | |||
| Employees: | 152 |
| Issuer's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Bank's Law Firm: | Brobeck, Phleger & Harrison |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
| Auditor: | Arthur Andersen |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/97 | 3/31/98 | 3/31/97 | 3/31/98 | ||
| Revenue: | $28.30 | $7.96 | $7.47 | Assets: | $15.70 |
| Net Income: | -$0.44 | -$1.74 | -$1.91 | Curr Assets: | $14.21 |
| EPS: | -$0.62 | -$0.09 | -$0.10 | Liabilities: | $8.21 |
| Prior EPS: | -$0.56 | -$2.93 | -$2.94 | Curr Liab: | $6.83 |
| Cash Flow/Oper: | -$9.48 | $0.47 | $0.02 | Equity: | $7.48 |
| Cash Flow/Fin: | $10.20 | $2.81 | -$0.07 | Cash: | $5.17 |
| Cash Flow/Inv: | -$3.57 | Working Cap: | $7.38 | ||
| Competition |
| Competition in the Company's markets is intense and involves rapidly changing technologies, evolving industry standards, frequent new product introductions and rapid changes in customer requirements. To maintain and improve its competitive position, the Company must continue to develop and introduce, on a timely and cost-effective basis, new products, features and services that keep pace with the evolving needs of its customers. The principal competitive factors affecting the markets for the Company's control network products are customer service and support, product reputation, quality, performance, price and product features such as adaptability, scalability, ability to integrate with other products, functionality and ease of use. The Company believes it has in the past generally competed favorably with offerings of its competitors on the basis of these factors. However, there can be no assurance that the Company will continue to be able to compete effectively based on these or any other competitive factors in the future. |
| Business Plan |
| Echelon's objective is to be the leading supplier of products and services used in the growing market for open, interoperable control networks. Key elements of the Company's strategy to accomplish this objective include: (I) Extend Technological Leadership, (ii) Target Industry-Leading OEM Customers, (iii) Develop Systems Integrator Distribution Channel, (iv) Increase Penetration of Existing Vertical Markets, (v) Integrate LonWorks Control Networks with Enterprise Data Networks and (vi) Leverage International Market Opportunities. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes, including working capital and capital expenditures. |