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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Esvida who wrote (8763)	1/14/1998 11:26:00 PM
From: bsl113	Respond to of 14631

I'm not sure if this recent SEC filling has already been discussed but I was wondering what others thought about its ramifications. freeedgar.com It is a very lengthy statement full of financial jargon. One of the key issues that were stated and I feel are reflected in IFMX's current stock price is Informix's working capital deficit. As everyone may already be aware of, IFMX's plan to fix this deficiency is by the offering of 22,900,000 new shares @$5.21875 a piece. As we might assume the will have difficulty completing this transaction if the the current share price falls below $5.21 Ques: Will this offer dilute the number of shares outstanding to the point that the share price will take a quick dive after the the new issues are sold? I thought in most cases it did... <<<<< The following was taken from Free Edgar >>>>>> NFORMIX CORP S-1 Filing Date: 1/9/98 NEED FOR ADDITIONAL FINANCING; CUSTOMER FINANCING The Company's cash, cash equivalents and short-term investments declined to$95.5 million at September 28, 1997 from $261.0 million at December 31, 1996. WORKING CAPITAL DEFICIT The restatement of the Company's financial statements have had a material adverse effect on the Company's financial condition, most notably evidenced by substantial reductions in retained earnings and working capital. At December 31, 1996, after giving effect to the restatement, the Company's working capital totaled $3.1 million, compared to $258.4 million as originally reported. At September 28, 1997, the Company had a working capital deficit of $254.9 million. The substantial reduction in working capital, as restated, at December 31, 1996 reflects net losses in fiscal 1996 of $73.6 million and the addition of $239.5 million of "advances on unearned license revenue" as a current liability on the Company's balance sheet. The working capital deficit at September 28, 1997 reflects net losses of $366.1 million for the nine months ended September 28, 1997, $210.3 million in advances on unearned license revenue as of such date, the Company's use of $61.5 million in January 1997 to purchase certain real property for construction of a new headquarters facility, and substantial uses of cash as a result of the Company's internal restructuring which commenced in the second quarter of 1997. The real property purchased by the Company in early 1997 was sold in the fourth quarter of 1997. --------------------------------------------------------------------- I recall from someone's previous post that they felt Informix must be expecting a strong 4th qtr. in which the offering of new shares would be successful. I know everyone is being patient on this stock. I too believe that it is going to turn around. I feel very strong about the circumstances that surround this company. Thanks everyone for doing so much research on this company. It warms me to see the great amount of participation and intelligence concentrated in this forum. Technology can be a great thing... Good Luck, Bryan