NetscapeKoski - -12,603-11,418 Depreciation 914 1,421 2,208...

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Netscape's Initial Public Offering Sample Projections Assumptions: 1995 1996 1997 1998 1999 2000 2001 2002 2003 Other Expenses/Revenues 81% 71% 61% 51% 41% 31% 21% 21% 21% Capital Exp/Revenues 46% 40% 34% 28% 22% 17% 11% 11% 11% Growth in Revenues 55% COGS/Revenues 10% R&D/Revenues 37% Depreciation/Revenues 6% Discount Rate 12% Tax Rate1999-2005 40% Tax Rate1998 30% TV growth rate 4% long term interest rate 7% Actual (dollars in thousands) 1995 1996 1997 1998 1999 2000 2001 2002 2003 Revenues 16,625 25,836 40,149 62,391 96,956 150,670 234,141 363,856 565,431 Cost of goods sold 1,736 2,687 4,175 6,489 10,083 15,670 24,351 37,841 58,805 Gross Profit 14,890 23,149 35,973 55,903 86,873 135,000 209,791 326,015 506,627 Research & development 6,115 9,508 14,775 22,960 35,680 55,447 86,164 133,899 208,079 Other operating expenses 13,449 18,318 24,451 31,757 39,655 46,557 48,936 76,046 118,175 Operating income -4,675 -4,676 -3,252 1,185 11,538 32,997 74,691 116,070 180,373 Taxes 0 0 0 0 36 13,199 29,876 46,428 72,149 Net Income -4,675 -4,676 -3,252 1,185 11,502 19,798 44,815 69,642 108,224 Cumulative tax loss carryforward -4,675 -9,351
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Unformatted text preview: -12,603-11,418 Depreciation 914 1,421 2,208 3,432 5,333 8,287 12,878 20,012 31,099 Change in working capital Capital expenditures 7,614 10,326 13,704 17,657 21,783 25,061 25,287 39,296 61,067 Net cash flow-11,375-13,581-14,748-13,040-4,949 3,023 32,405 50,358 78,256 Terminal value Calculation of Stock Price from PV PV(cash flows) 140,909 PV(terminal value) 791,009 Total PV (assets) 931,918 less Debt 3,513 Total PV(equity) 928,405 Current shares (000) 33,000 New shares (000) 5,000 Total shares (000) 38,000 Value per share 24.43 2004 2005 21% 21% 11% 11% 2004 2005 878,681 1,365,470 91,383 142,009 787,298 1,223,461 323,354 502,493 183,644 285,383 280,299 435,585 112,120 174,234 168,179 261,351 48,327 75,101 94,897 147,471 121,609 188,981 2,456,753 Revenue Inception (April 4 to Dec 31,1994)...
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