Company Overview
| Company Name |
ENVIVIO INC |
| Company Address |
400 OYSTER POINT BLVD., SUITE 325
SOUTH SAN FRANCISCO, CA 94080 |
| Company Phone |
650 243 2700 |
| Company Website |
www.envivio.com |
| CEO |
Julien Signs |
| Employees (as of 1/31/2012) |
146 |
| State of Inc |
DE |
| Fiscal Year End |
12/31 |
| Status |
Priced (4/25/2012) |
| Proposed Symbol |
ENVI |
| Exchange |
Nasdaq National Market |
| Share Price |
$9.00 |
| Shares Offered |
7,755,000 |
| Offer Amount |
$69,795,000.00 |
| Total Expenses |
$4,985,000.00 |
| Shares Over Alloted |
0 |
| Shareholder Shares Offered |
1,255,000 |
| Shares Outstanding |
26,657,728 |
| Lockup Period (days) |
180 |
| Lockup Expiration |
10/22/2012 |
| Quiet Period Expiration |
6/4/2012 |
| CIK |
0001174266 |
We estimate that the net proceeds from the sale of shares of our common stock
that we are selling in this offering will be $49.4 million, after deducting
estimated underwriting discounts and commissions and estimated offering expenses
payable by us. We will not receive any proceeds from the shares of common stock
sold in the offering by the selling stockholders, although we will pay the
expenses, other than underwriting discounts and commissions, associated with the
sale of those shares.
The principal purposes of this offering are to obtain additional capital, to
create a public market for our common stock and to facilitate our future access
to the public equity markets.
We currently intend to use the net proceeds received by us from this offering
for working capital and general corporate purposes, including further expansion
of our sales and marketing efforts, continued investments in research and
development and for capital expenditures. Specifically, we intend to hire
additional personnel to support the growth in our business. In addition, we may
use a portion of the proceeds received by us from this offering for acquisitions
of complementary businesses, technologies or other assets. We have no agreements
with respect to any material acquisitions at this time and we have not allocated
specific amounts of net proceeds for any of these purposes. Based on our current
cash and cash equivalents balance together with cash generated from operations,
we do not expect that we will need to utilize any of the net proceeds to us of
this offering to fund our operations during the next 12 months.
We cannot specify with certainty the particular amounts or uses for the net
proceeds to be received by us from this offering. Accordingly, our management
team will have broad discretion in using the net proceeds to be received by us
from this offering.
Pending the use of proceeds from this offering as described above, we plan to
invest the net proceeds in short- and intermediate-term, interest-bearing
obligations, investment-grade instruments, certificates of deposit or direct or
guaranteed obligations of the U.S. government.
The market for our solution is highly competitive and fragmented. With the rapid
adoption of video-enabled mobile devices, ubiquitous broadband connectivity and
the growing consumer demand for TV without Boundaries, the market for our
products is attracting competition. As a result, we expect competition in our
markets to intensify in the future as existing and new competitors introduce
products to meet this demand. We believe the principal competitive factors in
our market include the following:
o Technological leadership;
o Maintaining a high quality of video across a wide array of networks and
devices including mobile, OTT and IPTV;
o Product performance, price, reliability and total cost of ownership;
o Domain expertise in video and communications, as well as close
relationships with service providers;
o Interoperability with existing headend products and network infrastructure;
o Advanced management systems for video delivery solution reliability and
manageability; and
o Comprehensive customer support.
Currently, we compete with companies focused on more traditional broadcast
delivery, including Harmonic Inc. We also compete with companies focused on
multi-screen encoding, including Cisco Systems, Inc. (through its acquisition of
Inlet Technologies LLC) and RGB Networks, Inc. (through its acquisition of
RipCode, Inc.). Due to the evolving competitive landscape and growing market
opportunity, we expect to encounter direct competition in the future from one or
more larger traditional network infrastructure providers that may currently be
one of our systems integrators, such as Motorola Mobility (in the process of
being acquired by Google Inc.) and Ericsson AB. These network equipment
companies may provide, as a package, encoding solutions in combination with
other equipment that they traditionally sell to service providers.
We believe we compete favorably based on video quality across all screens,
product performance, architecture and reliability and our expertise in
seamlessly integrating new features and product updates to adapt to the dynamic
requirements of service providers and content providers and evolving
technological landscape. We also believe that we offer competitive service and
prices. However, some of our current and potential competitors have
significantly greater financial, marketing and other resources and may be able
to devote greater resources to the development, sale and support of their
products.
Conditions in our market could change rapidly as a result of technological
advancements in video compression and delivery or from continuing market
consolidation. The development of alternative technologies could decrease the
demand for our products. We cannot be certain that we will be able to compete
successfully against our current or future competitors, which may negatively
affect our results of operations in the future.
Company Description
We are a leading provider of software-based IP video processing and distribution
solutions that enable the delivery of high-quality video to consumers. Based on
our unique video compression and advanced IP video networking technologies, our
solution is designed to enable service providers and
content providers to offer
high-quality video anytime, anywhere across a broad array of video formats,
networks, consumer devices and operating systems. We refer to this video
experience as TV without Boundaries and believe it is one of the fastest growing
components of the $3.0 billion video infrastructure market. Our software-based
solution offers flexibility to our customers, runs on industry-standard hardware
and includes encoders, transcoders and network media processors, all controlled
through our network management system.
We enable service providers and content providers to deliver linear broadcast
and on-demand video services to their customers via multiple screens, such as
tablets, smartphones, netbooks, laptops, PCs and TVs. We offer service providers
and content providers the ability to deliver high-quality video to their
customers either across their managed networks or outside the boundaries of
their network over the open Internet, referred to as over-the-top, or OTT. Our
customers include mobile and wireline telecommunications service providers,
cable multiple system operators, or MSOs, direct broadcast satellite service
providers, or DBSs, and content providers, which includes broadcasters and
content publishers, owners, aggregators and licensees. We have sold our solution
to over 300 end-customers to date in over 50 countries. We distribute our
products and solutions globally through a network of channel partners, which
includes leading telecommunications systems integrators throughout the world, as
well as through our own direct sales force.
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We were founded in 2000. Our principal executive offices are located at
400 Oyster Point Blvd., Suite 325, South San Francisco, California 94080, and
our telephone number is (650) 243-2700. As of January 31, 2012, we had 146
full-time employees. Our website address is www.envivio.com.