Case Studies
Netstar Solution
ImagicTV Inc.
Delano Technology Corp.
FloNetwork Inc.
Netstar Solutions
Netstar Solutions incorporated in 1996
Netstar is an information technology (IT) services company.
They offer a full range of services including architectural
consultancy, software design and development, technical
writing, application maintenance and operational support.
With their experience in legacy applications and their skills
in leading-edge technology, they help their customers to
bridge the data processing gap and implement new
applications with internet or network computing in their
existing computer environment.
95% of revenues come from services
annual revenues $ 9 million
Netstar Solutions
Total Revenues:
1996: $ 500,000
1997: $ 2.5 million
1998: $ 5 million
1999: $ 9 million
Employees:
15 in 1996
35 in 1997
50 in 1998
75 in 1999
ImagicTV Inc.
ImagicTV Inc. Incorporated in December 1997, began
operations in January 1998
They develop and license infrastructure software products
and provide related services that enable telephone companies
and other service providers to deliver multi-channel digital
television and interactive media services to their subscribers’
televisions and personal computers over a broadband or high-
speed communications network.
They derive revenues from 3 primary sources
charge license fees to customers who license their
software products
customers pay royalty fees on a per subscriber basis
generate services fees from professional services and
maintenance and technical support services
ImagicTV Inc.
160 employees
4,750,000 shares offered
Total revenue:
February 28, 1999 had $ 479,000
February 29, 2000 had $ 2,098,000
August 31, 2000 had $ 3,569,000
Gross Profit
lost $ 125,000 at February 28, 1999
earned $ 1,110,000 at February 29, 2000
earned $ 1,866,000 at August 31, 2000
ImagicTV Inc.
As of August 31, 2000
Actual total assets is $ 6,032,000
Actual total shareholders’ equity is $ 754,000
They have a history of significant losses and have never
generated positive operating income
$ 110,000 from December 24, 1997 to February 28, 1998
$ 3.1 million in fiscal 1999
$ 5.6 million in fiscal 2000
$ 5.0 million for the six months ended August 31, 2000
They had an accumulated deficit of approximately $ 13.8
million
Delano Tech. Corp.
Delano Technology Corp. incorporated on May 7, 1998
They provide communications software that enables
companies to use e-mail and the internet to automate
business processes and to personalize and manage
interactions with their existing and prospective customers,
partners, suppliers and employees.
Companies can use their software to rapidly develop and
deploy applications for business interactions over the
Internet, or e-business communications.
Delano Tech. Corp.
159 employees as on February 8, 2000
5,000,000 shared offered
Total revenue at December 31, 1999, $ 5,357,000
Gross Profit at December 31, 1999, $ 4,636,000
Actual total assets at December 31, 1999 is $ 16,590,000
They have incurred substantial operating losses in every
quarter, resulting in an accumulated deficit of $ 6.2 million
at December 31, 1999
FloNetwork Inc.
FloNetwork Inc. incorporated in Toronto, Ontario in August
1993 under the name Media Synergy Inc. and in November
1999 changed their name to FloNetwork Inc.
They provide Internet direct marketing and communications
services.
Also provide a full range of e-marketing services on an
outsourced basis to assist their clients in the development,
execution and assessment of their e-mail campaigns.
They have provided e-mail messaging services to over 100
clients since May 1998.
Their percentage of revenue derived from e-mail messaging
has increased from 42.1% of their total revenue on
December 31, 1998, to 99.8% on December 31, 1999
FloNetwork Inc.
91 employees as on May 31, 2000
3,750,000 shares offered
Total revenue:
on July 31, 1998, $ 748,000
on July 31, 1999, $ 777,000
on December 31, 1999, $ 1,194,000
As of December 31, 1999
Actual total assets is $ 17,005,000
Actual total shareholders’ equity is $ 13,507,000
FloNetwork Inc.
They have a history of significant losses and have never
generated positive operating income
$ 811,000 in fiscal 1998
$ 2,429,000 in fiscal 1999
$ 2,384,000 at December 31, 1999
They had an accumulated deficit of approximately $ 6.0
million
Reference
www.alert-ipo.com
www.netstarsoln.com
www.imagictv.com
www.delanotech.com
www.flonetwork.com