Comdisco, Inc., Announces Plan to Create Ventures Tracking Stock; Expects First Quarter Earnings Per Share to Exceed Consensus Street Estimates.Business Editors ROSEMONT, Ill.--(BUSINESS WIRE)--Dec. 22, 1999 Reports Value of Publicly Traded Securities in Ventures Portfolio More Than Doubled Since End of Quarter Comdisco, Inc. (NYSE/CDO) today announced plans to create a new series of Comdisco common stock that will track the performance of its Comdisco Ventures division, subject to resolution of certain regulatory issues. The company also filed its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. with the Securities and Exchange Commission. Operational and financial information on both Prism Communication Services, Inc. (Prism), and Comdisco Ventures, previously unavailable, has been included in the text of, and as exhibits to the 10-K. The company also stated that they expect to exceed first quarter earnings per share consensus street estimates by $.10 per share, and report approximately $.35 earnings per share for the quarter, excluding Prism. Comdisco Ventures: The new tracking stock is intended to reflect the performance of the venture financing business of the Comdisco Ventures division. Comdisco Ventures was formed in 1987 and since that date has committed more than $1.7 billion to more than 675 venture capital-backed companies. Comdisco Ventures recently completed a record year with $229 million in revenue, a 101% increase from the prior year period, $71 million in pre-tax earnings, a 145% increase from the prior year, and $200 million in equity, a 182% increase from the year ago period. "We believe a Comdisco Ventures tracking stock will allow us to unlock the tremendous value inherent in this business and bring it to light for the investment community," said Comdisco's President and Chief Executive Officer, Nick Pontikes. "Comdisco Ventures has established key relationships with the top tier venture capital firms Name Location Founding date Managing Partners/Directors Specialty Capital managed 5AM Ventures Menlo Park, CA; Waltham, MA 2002 John Diekman, PhD (managing partner), Scott Rocklage, PhD (managing partner), Andrew Schwab (managing partner) life sciences $200M [1] in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and participates in helping to finance some of the most exciting start-up and emerging growth companies of today. We think investors will see the value of this business." Continued Pontikes, "Comdisco Ventures track record under its President, Jim Labe, has been nothing short of phenomenal. In addition to the record operational numbers mentioned above, the value of publicly traded securities within the Ventures portfolio, on a mark-to-market basis, has more than doubled since the quarter ended September 30, 1999, to over $400 million." Within the last two weeks 6 companies in the Comdisco Ventures portfolio have completed initial public offerings. Comdisco Ventures currently has 12 companies in its portfolio that have S-1 registration statements pending with the Securities and Exchange Commission. There are another 10 companies in the Comdisco Ventures portfolio that have announced that they are in the process of being merged or acquired. Comdisco anticipates that it will file a preliminary proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the creation of the Comdisco Ventures tracking stock with the Securities and Exchange Commission in January 2000, subject to resolution of certain regulatory issues with the SEC. The Company then plans to send a final proxy statement to all Comdisco stockholders calling for a vote to approve the creation of the Comdisco Ventures tracking stock at a special meeting of stockholders, which is expected in the spring of 2000. If the tracking stock proposal is approved by its stockholders, Comdisco intends to conduct an initial public offering of Comdisco Ventures tracking stock in the spring. Comdisco anticipates that a distribution of remaining shares of the Comdisco Ventures tracking stock will be made to stockholders of Comdisco's common stock at some time in the future. Comdisco Ventures tracking stock is not expected to pay dividends. First Quarter Earnings: The company also announced today that it anticipates it will exceed consensus street estimates for its first fiscal quarter ended December 31, 1999. "Within our Comdisco Ventures portfolio, we have realized a more than 100 % increase on our publicly traded securities, on a mark-to-market basis, since September 30, 1999," said Pontikes. "As these securities come off their lockup period lockup period The time during which employees and other early investors are prohibited from selling stock in a newly listed company. Investment banks that bring the securities to market establish lockup periods to protect investors in a new issue from large , we sell them in an orderly fashion. As a result, we have recognized significant gains during the quarter and we expect first quarter earnings per share to be in excess of consensus street estimates. Excluding Prism, we expect to report approximately $.35 per share for the quarter." Form 10-K Filing: The company today also filed its Annual Report on Form 10-K with the Securities and Exchange Commission. The company has provided key data on both Prism and Comdisco Ventures in the text of, and as exhibits to the 10-K. "The 10-K will provide our shareholders with an up-to-date operational perspective and audited financial statements for both Prism as well as Comdisco Ventures. The Prism business description will provide the reader with an understanding of the Prism strategy, infrastructure, and nationwide rollout as well as the competitive advantages we believe Prism offers as a telecommunications provider," said Pontikes. "In addition, this information documents Comdisco Ventures exceptional financial performance over the last three fiscal years and will provide further evidence of why we think investors will see the value of this business." PRISM: Regarding Prism, the company stated that Comdisco's board of directors continues to analyze all available options in determining the best alternative in monetizing the assets of Prism. "We are conducting a very thorough analysis of Prism's options as a separate entity so that we can create the structure that is in the best interests of our stockholders," said Pontikes. "We hope to have our studies finalized See finalization. soon." In a separate release today, the company announced Nortel Networks (Nortel Networks Limited, Brampton, Ontario, www.nortelnetworks.com) A world leader in telecommunications products, which includes switching, wireless and broadband systems for service providers and carriers, telephones and systems for residential and business users, computer telephony (NYSE/TSE: NT) acquisition of a one percent fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ownership position in Prism for stock valued at $10 million. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. : The foregoing contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding Comdisco, which are based on current expectations and assumptions, and which involve risks and uncertainties that could cause results to differ. The company intends that such forward-looking statements be subject to the safe harbor created by Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. The following lists some of the factors, which could cause results to differ from expectations. The tracking stock proposal will not be presented by the company to its stockholders unless certain regulatory issues can be resolved with the SEC. If presented, the tracking stock proposal cannot be implemented without approval of the company's stockholders. We cannot assure you that regulatory issues will be resolved in a manner favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the company or that stockholders will approve the proposal presented. The company's operating results are subject to quarterly fluctuations resulting from a variety of factors, including earnings contributions from remarketing activities and services, product announcements by manufacturers, economic conditions and variations in the financial mix of leases written. The financial mix of leases written is a result of a combination of factors, including, but not limited to, changes in customer demands and/or requirements, new product announcements, price changes, changes in delivery dates, changes in maintenance policies and the pricing policies of equipment manufacturers, and price competition from other lessors and finance companies. The company has made loans to and equity investments in various privately held companies privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. . These companies typically are in an early stage of development with limited operating histories, and limited or no revenues and may be expected to incur substantial losses. Accordingly, investments in these companies may not result in any return and the company may lose its entire investment and/or principal balance. Equity instruments held by the company are subject to lockup agreements lockup agreement A contractual offer of valuable assets or stock made by a takeover target to the suitor deemed most acceptable to management. A lockup agreement tends to discourage unwanted suitors, but it may penalize the target firm's stockholders because restricting its ability to sell until several months after an initial public offering. The public market for high technology and other emerging growth companies is extremely volatile. Such volatility may adversely affect the ability of the company to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose the equity securities and the value of those securities on the date of the sale. Prism is a start up company that has incurred operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. since inception and the company expects that Prism's operating losses will continue to increase as it introduces its services throughout New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. and the Northeast corridor This article is about a rail line. For the agglomeration of metropolitan areas, see BosWash. For the New Jersey Transit line, see Northeast Corridor Line. The Northeast Corridor (NEC . In addition, Prism will require substantial additional capital to support its data network, to expand its services, to increase its sales and marketing efforts and to support its growth. To the extent that revenues do not grow at anticipated rates or that increases in such operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. precede or are not subsequently followed by commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. increases in revenues, or that the company is unable to adjust operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. levels and/or capital expenditures of Prism accordingly, the company's business, results of operations and financial condition could be significantly affected. There can be no assurance that in the future Prism will be profitable on a quarterly or annual basis. Additional factors that would cause results to differ are discussed in the company's 10-K. The company undertakes no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events or otherwise. About Comdisco, Inc: Comdisco (www.comdisco.com) provides global technology services to help its customers maximize technology functionality, predictability and availability, while freeing them from the complexity of managing their technology. The Rosemont, (IL) company offers a complete suite of information technology services including business continuity, managed network services, and IT control and predictability solutions. Through its subsidiary, Prism Communication Services Inc., Comdisco is developing a high-speed, always-on digital network, which will provide customers with leading-edge connectivity. Comdisco also offers equipment services to key vertical industries, including electronics, communications, laboratory & scientific, and computer-integrated manufacturing computer-integrated manufacturing Data-driven automation that affects all systems or subsystems within a manufacturing environment: design and development, production (see CAD/CAM), marketing and sales, and field support and service. . Through its Ventures group, Comdisco is a leader in providing equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
A new business. . The company's revenue for the 12 months ended September 30, 1999, was $4.2 billion. Comdisco is a registered trademark of Comdisco, Inc. Other company names are trademarks of their respective organizations. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion