Great stuff, Paul. I've been reading the same information in their prospectus. Here are a few points from the following EDGAR filing:
sec.gov
Efficient Networks is a worldwide developer and supplier of high-speed
digital subscriber line customer premises equipment for the high-speed, high-
volume digital communication, or broadband, access market. According to Cahners
In-Stat Group, Efficient was ranked as number five of the top six worldwide
producers of digital subscriber line customer premises equipment in terms of
both revenues and number of units shipped in 1998 and moved up to number three
of the top six suppliers in the first quarter of calendar 1999. Digital
subscriber line, or DSL, solutions enable telecommunications and other
communication network service providers to provide high-speed, cost-effective
broadband access services over the existing copper wire telephone
infrastructure. We believe there is significant demand for broadband access,
especially among business users and consumers who have found current solutions
to be inadequate or too expensive. DSL networks generally consist of two core
components, one installed at the network operator's facility--typically
referred to as the central office--and one installed at the customer's home or
business. The DSL equipment installed at the customer premises is generally
referred to as customer premises equipment. We develop and produce DSL customer
premises equipment, and in particular single- and multiple-user DSL customer
premises equipment for small- to medium-size businesses, branch offices of
large corporations and consumers. Our DSL products enable applications such as
high-speed Internet access, electronic commerce, access to computer networks
from remote locations, telecommuting and extensions of corporate networks to
branch offices.
We sell our products to network equipment vendors and DSL network service
providers. As of March 31, 1999, our products have been deployed by BellSouth,
Covad Communications, Hong Kong Telecom, Singapore Telecom and seven other
network service providers, and purchased by eight network equipment vendors. An
additional 39 network service providers have begun to test our customer
premises equipment solutions.
Number of
Shares Date of Availability for Sale
--------- -----------------------------
<S> <C>
76,250 July 14, 1999 (date of this prospectus)
October 12, 1999 (90 days after the date of this
140,938 prospectus)
26,650,246 January 11, 2000 (after 180 days following the date of
this prospectus); and the remaining shares at various
times thereafter upon the expiration of one-year holding
periods
Our executive officers and directors and their affiliates will own
approximately 51.8% of the outstanding common stock after this offering, or
51.0% if the underwriters' option is fully exercised.
For the nine months ended March 31, 1999, Covad
Communications represented 19.6% of our net revenues, and Lucent Technologies
represented 10.2% of our net revenues. For the fiscal year ended June 30, 1998,
Victron, a manufacturer for Xylan, represented 19.6% of our net revenues, and
Telecom Equipment, a distributor for Singapore Telecom, represented 12.6% of
our net revenues. Our top ten customers for the nine months ended March 31,
1999 accounted for 80.5% of our net revenues.
The market for DSL services is expanding rapidly. Several incumbent local
exchange carriers and competitive local exchange carriers have begun to offer
DSL services to their customers directly and through Internet service
providers. In April 1998, GTE Network Services announced plans to offer DSL
service in approximately 300 central offices across 16 states. In May 1998,
Pacific Bell announced plans to deploy DSL service to 87 central offices which
would provide service to approximately 650,000 business customers and 4.4
million homes across California. In January 1999, Pacific Bell further
announced it would spend more than $100 million in 1999 to upgrade its DSL
technology and equip 255 central offices. Also in January 1999, Southwestern
Bell announced a rollout to 271 central offices allowing DSL service to reach
over 440,000 businesses and 3.2 million homes. Covad Communications, a
competitive local exchange carrier, announced the availability of its DSL
services in the San Francisco Bay area in December 1997. By May 1998, Covad's
service was available to over one million potential customers. By the end of
1998, Covad extended its DSL offerings to over 6 million businesses and homes
in five major metropolitan areas, and by April 1999, Covad had deployed DSL
capability to over 11.2 million homes and businesses in nine metropolitan
areas.
The following table sets forth the top 20 customers for our DSL products in
the current fiscal year, categorized by customer type. These customers
accounted for an aggregate of 24.4% of our total revenues in fiscal 1998 and
76.4% of our total revenues for the first nine months of fiscal 1999.
<TABLE>
<CAPTION>
Network Equipment Vendors Network Service Providers Telephone Company-Aligned
and Other Distributors
- --------------------------------------------------------------------------------------------
<S> <C> <C>
ADC Telecommunications Ameritech Global Technology Integrator
Alcatel Covad Communications* Innotrac for BellSouth's network
Diamond Lane Communications Flashcom Semitron
Ericsson Hong Kong Telecom Telecom Equipment for Singapore
Lucent Technologies* Panhandle Telecommunications Telecom's network*
Nokia Services Universe Computers
Nortel Networks SourceNet
Siemens Southwestern Bell
Percentage of Percentage of
Shares Shares
Number of Shares Beneficially Owned Beneficially Owned
Name and Address Beneficially Owned Prior to Offering After the Offering
- ---------------- ------------------ ------------------ ------------------
<S> <C> <C> <C>
Crosspoint Venture
Partners(1)............ 5,116,619 15.9% 14.1%
18552 MacArthur Blvd.,
Suite 400
Irvine, CA 92612
Texas Instruments
Incorporated........... 4,185,973 13.0 11.6
P.O. Box 660199, M.S.
8650
Dallas, TX 75266-0199
El Dorado Ventures(2)... 4,081,800 12.7 11.3
2400 Sand Hill Road,
Suite 100
Menlo Park, CA 94025
Enterprise Partners(3).. 3,821,374 11.9 10.6
5000 Birch Street, Suite
6200
Newport Beach, CA 92600
Siemens AG.............. 3,716,800 11.6 10.3
Hofmannstrasse 51
81359 Munchen, Germany
ADC Telecommunications,
Inc.................... 2,144,113 6.7 5.9
2240 Campbell Creek Road
Richardson, TX 75082
Menlo Ventures(4)....... 2,043,210 6.4 5.6
3000 Sand Hill Road,
Bldg. 4, Suite 100
Menlo Park, CA 94025
Chase Bailey............ 1,650,000 5.1 4.6
258 Main Street #D
Los Gatos, CA 95030
Mark A. Floyd(5)........ 1,460,417 4.5 4.0
Bruce W. Brown(6)....... 75,000 * *
Robert A. Hoff(7)....... 5,129,119 15.9 14.2
Thomas H. Peterson(8)... 4,094,300 12.7 11.3
James P. Gauer(9)....... 1,971,234 6.1 5.4
Anthony T. Maher(10).... 3,720,550 11.6 10.3
William L. Martin
III(11)................ 2,156,613 6.7 6.0
Robert Hawk(12)......... 150,000 * *
David B. Stefan(13)..... 50,521 * *
Patricia W. Hosek(14)... 97,917 * *
Gregory L. Langdon(15).. 91,667 * *
Paul E. Couturier(16)... 81,823 * *
All directors and
officers as a group (12
persons)(17)........... 19,181,869 58.1% 51.8%
Underwriters Shares
------------ ---------
<S> <C>
Credit Suisse First Boston Corporation........................ 1,775,000
BancBoston Robertson Stephens Inc............................. 1,065,000
Volpe Brown Whelan & Company, LLC............................. 710,000
Dain Rauscher Wessels, a division of Dain Rauscher
Incorporated................................................. 75,000
EVEREN Securities, Inc........................................ 75,000
Invemed Associates, Inc....................................... 75,000
Brad Peery Inc................................................ 75,000
Charles Schwab & Co., Inc..................................... 75,000
U.S. Bancorp Piper Jaffray Inc................................ 75,000
---------
Total....................................................... 4,000,000
=======
AND A WHOLE LOT MORE......
Miller |
