The CDO board approves the Prism IPO:
biz.yahoo.com
Wednesday January 26, 7:01 am Eastern Time
Company Press Release
Comdisco, Inc. Announces Board Approval for Prism IPO
ROSEMONT, Ill.--(BUSINESS WIRE)--Jan. 26, 2000--Comdisco, Inc. (NYSE: CDO - news) today announced that its board of directors has approved a plan to file for an initial public offering (IPO) of common stock in its Prism Communication Services, Inc. subsidiary. The company expects to file a registration statement with the Securities and Exchange Commission within the next few months subject to market conditions.
The offering is intended to enable Comdisco to capitalize on the significant value to be created through Prism as it gains momentum as an integrated coast-to-coast communications provider. Currently Prism has met regulatory requirements as a CLEC (competitive local exchange carrier) in 26 states and the District of Columbia. By the end of first quarter of 2000, the company expects to establish one of the most solid and robust nationwide communications networks designed to offer high-speed Internet access, voice, data and other communications services to small to medium businesses, teleworkers and power users.
``We believe an IPO of Prism is the best opportunity for Comdisco to unlock the tremendous value inherent in the exploding U.S. market for integrated voice and data, high-speed Internet access and other communications services that enhance productivity,' said Comdisco's President and Chief Executive Officer, Nick Pontikes. ``We believe Prism's strategies for growth are sound, and that it is well positioned to succeed as an independent, publicly traded company.'
On January 25, Prism introduced voice services to customers throughout the New York metropolitan area, becoming the first CLEC to offer carrier-grade voice and high-speed data services over the local loop, confirming the company's position as a leading integrated communications provider.
In December 1999, Comdisco announced that Nortel Networks(TM) (NYSE/TSE: NT) had acquired a one percent fully diluted ownership position in Prism for $10 million. Earlier that month, Prism and Williams Communications Group, Inc. (NYSE: WCG - news) announced a similar acquisition by Williams in Prism common stock.
Safe Harbor: The foregoing contains forward-looking statements 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 ofthe 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.
Prism operates in a highly regulated environment. Changes in regulatory policies may adversely impact its ability to provide services and increase the costs of providing those services. Prism's ability to establish a nationwide network may be affected by a number of factors, including its reliance on third parties, including some of its competitors and potential competitors, to develop and provide access to communications and networking technology; the ability of its equipment and service suppliers to meets its needs; and its ability to access regions and enter into suitable interconnection agreements with traditional telephone companies.
Prism is a start-up company that has incurred operating losses since inception and the company expects that Prism's operating losses will continue to increase as it introduces its services throughout the United States and Canada. 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 precede or are not subsequently followed by commensurate increases in revenues, or that the company is unable to adjust operating expense 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. Through its Ventures group, Comdisco is a leader in providing equipment leasing and other financing and services to venture capital backed start-up companies. The company's revenue for the 12 months ended December 31, 1999, was $4.1 billion.
Comdisco is a registered trademark of Comdisco, Inc. Other company names are trademarks of their respective organizations.
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Contact:
Comdisco, Inc.
Investor Contact:
James J. Hyland, 847/518-5051
jjhyland@comdisco.com
or
Media Contact:
Mary Moster, 847/518-5147
mcmoster@comdisco.com |
