[SOLVED] CS Ex1

Ex1

Exhibit 1Consolidated Income Statements for Netscape Communications Corporation
Inception (April 4 toSix Months Ended
December 31, 1994) 30, 1995
Revenues:
Product revenues$ 378,490$ 15,580,258
Service revenues317,3811,045,133
Total Revenues.695,87116,625,391
Cost of Revenues:
Cost of product revenues114,7771,222,045
Cost of service revenues104,313513,767
Total Cost of Revenues.219,0901,735,812
Gross profit476,78114,889,579
Operating Expenses:
Research and development2,031,9866,115,152
Sales and marketing2,813,6899,256,066
General and administrative1,669,1933,693,005
Property rights agreement and related charges2,486,688500,000
Total Operating Expenses9,001,55619,564,223
Operating loss(8,524,775)(4,674,644)
Interest income55,238495,583
Interest expenses(308)(128,655)
Net loss$ (8,469,845)$ (4,307,716)
Net loss per share$ (0.26)$ (0.13)
Shares used in computing net loss per share32,256,30733,000,751

Ex2

Exhibit 2Consolidated Balance Sheets for Netscape Communications Corporation
31, 1994 30, 1995
Assets
Cash and short-term equivalents$ 3,243,510$ 8,868,436
Short-term investments16,567,300
Accounts receivable701,6498,277,869
Other current assets67,284804,971
Total current assets$ 4,012,443$ 34,518,576
Property and equipment, net2,447,0986,761,045
Deposits and other assets699,1001,251,582
Total Assets$ 7,158,641$ 42,531,203
Liabilities and Stockholders Equity
Accounts payable$ 855,068$ 4,607,174
Accrued compensation and related liabilities527,3401,075,066
Other accrued liabilities667,5031,897,819
Deferred revenues2,575,14514,963,843
Current portion of long-term obligations725,000725,000
Installment notes payable551,449
Total current liabilities5,350,05623,820,351
Long-term obligations725,000725,000
Installment notes payable1,511,331
Total Liabilities6,075,05626,056,682
Preferred stock. $0.0001 par value701901
Common stock, $0.0001 par value4511,514
Additional paid-in capital9,552,27839,683,666
Notes receivable from stockholders(638,065)
Deferred compensation(9,812,151)
Accumulated deficit(8,469,845)(12,777,561)
Accumulated translation adjustment16,217
Total Stockholders Equity1,083,58516,474,521
Total Liabilities and Stockholders Equity$ 7,158,641$ 42,531,203

Ex3

Exhibit 3Comparative Information on Potential Competitors (for year ended June 30, 1995; in $000s except per-share data)
Netscape(a)America Online, IncMicrosoft Corp.Spyglass,Inc
Net revenues17,321394,2905,937,0009,084
Operating expenses30,521143,5843,899,0006,745
Operating income (loss)(13,200)(19,294)2,038,0002,339
Interest expense(129)
Net income (loss)(12,778)(33,647)1,453,0001,509
Earning per share(0.39)(0.99)2.320.41
Weighted average shares outstanding33,00133,986627,0003,788
Capital expenditures7,61857,751495,000824,609
Depreciation, depletion, and amortization91811,136269,000161,303
Current assets34,519132,8565,620,00037,372
Cash and short-term investments25,43664,0504,750,00034,556
Total assets42,531406,4647,210,00039,963
Current liabilities23,820133,3121,347,0002,718
Total liabilities26,057188,5201,877,0004,368
Net worth16,475217,9445,333,00035,595
Current ratio1.451.004.1713.75
Debt/total capital0.180.08
Common stock price (close)N/A22.0090.3814.31
P/E ratioN/AN/A39.0034.90
Equity beta(b)N/A0.730.72N/A
(a) Netscapes financial data reflects the companys performance since inception in April 1994. Netscape did not begin to ship products or earn significant
product revenues until December 1994.
(b) Bloomberg estimates based on weekly data for the year ended June 30,1885.

Ex4

Exhibit 4Historical Data of the IPO Market
19901991199219931994
All IPOs:
Number of companies166352477604510
Total dollar amount offered (in $ billions)4.7516.0122.7630.7417.98
Average % gain after first day of trading10.311.69.411.78.1
Venture-backed IPOs:
Number of companies42122152165136
Average age of companies66677
Total dollar amount offered (in $ billions)1.193.94.584.863.35
Average offering size (in $ millions)28.332.029.129.624.8
Average offering valuation (in $ millions)109.3118.5101.7100.586.8

Ex6

Exhibit 6Information on Internet- related IPOs ( for the respective fiscal year preceding the IPO)
Netcom Online
CommunicationPerformance SystemsUnnet
Services, IncInternational, Inc.Spyglass, IncTechnologies Inc.
(year ended 12/31/93)(year ended 12/31/94)(year ended 9/30/94)(year ended 12/31/94)
Financial Data
Net revenues$ 2,411,600$ 15,214,000$ 3,629,392$ 12,413,863
Operating costs and expenses2,169,60019,876,0002,272,66219,387,821
Operating income242,000(4,662,000)751,520(6,973,958)
Interest expense(3,400)(731,000)(76,232)
Net income227,300(5,342,000)1,331,262(6,948,759)
Earnings per share$ 0.04$ (0.25)$ 0.39$ (0.35)
Weighted average share outstanding6,300,60020,395,0003,448,95220,029,824
Capital expenditures1,027,6002,563,000208,5675,897,309
Depreciation, depletion, and amortization156,9003,183,00068,0341,010,027
Current assets235,5005,564,0003,254,5626,192,629
Cash and short-term investments75,5003,358,0001,450,6514,649,737
Total assets1,347,00017,055,0005,296,72712,024,575
Current assets789,3007,118,0001,406,7275,755,418
Total liabilities802,30011,721,0003,056,7276,422,085
Net worth544,7005,334,0002,240,0005,602,490
IPO Data:
Date of IPO12/14/945/8/956/27/955/25/95
Price per share offered$ 13.00$ 12.00$ 17.00$ 14.00
Number of shares offered1,850,0004,370,0002,000,0004,725,000
% of total equity sold28%17%40%17%
% change in stock price after day of trading31%27%60%96%
Price per share on August 8, 1995$36.375$ 22.00$ 49.25$ 46.25