<PAGE> 1
Exhibit 99.1
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL STATEMENTS
Unaudited Pro Forma Combined Condensed Financial
Information............................................... F-2
Unaudited Pro Forma Combined Condensed Statements of
Continuing Operations for the Year Ended December 31,
1999...................................................... F-3
Unaudited Pro Forma Combined Condensed Statements of
Continuing Operations for the Period Ended September 30,
2000...................................................... F-4
Notes to Unaudited Pro Forma Combined Condensed Financial
Information............................................... F-5
INTERVU INC.
Condensed Consolidated Balance Sheets....................... F-6
Condensed Consolidated Statements of Operations............. F-7
Condensed Consolidated Statements of Cash Flows............. F-8
Notes to Condensed Consolidated Financial Statements........ F-9
</TABLE>
F-1
<PAGE> 2
UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL INFORMATION
The following unaudited pro forma combined condensed financial information
gives effect to the acquisitions by Akamai of INTERVU and Network24 as if the
transactions had occurred on January 1, 1999. These transactions are being
accounted for using the purchase method of accounting. The unaudited pro forma
combined condensed financial information for the year ended December 31, 1999
combines Akamai's historical statements of continuing operations for the year
ended December 31, 1999 with INTERVU's and Network24's historical statements of
continuing operations for the year ended December 31, 1999. The unaudited pro
forma combined condensed financial information for the nine months ended
September 30, 2000 combines Akamai's historical statements of continuing
operations for the nine months ended September 30, 2000 with INTERVU's
historical statements of continuing operations for the period from January 1,
2000 to April 20, 2000 and Network24's historical statements of continuing
operations for the period from January 1, 2000 to February 10, 2000. The pro
forma combined condensed financial information is based on continuing operations
only and excludes extraordinary items. A pro forma balance sheet has not been
presented as the transactions have been reflected in Akamai's September 30, 2000
balance sheet.
The pro forma combined condensed financial information is presented for
illustrative purposes only and is not necessarily indicative of the operating
results that would have been achieved if the acquisition had been completed as
of the beginning of the period presented, nor is it necessarily indicative of
the future operating results of Akamai. The pro forma combined condensed
financial information does not give effect to any cost savings or restructuring
and integration costs that may result from the integration of Akamai's,
INTERVU's and Network24's operations.
The unaudited pro forma combined condensed financial information should be
read in conjunction with the audited financial statements and accompanying notes
of Akamai, INTERVU and Network24 included elsewhere in this prospectus.
F-2
<PAGE> 3
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS
OF CONTINUING OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1999
(in thousands, except per share data)
<TABLE>
<CAPTION>
HISTORICAL PRO FORMA
------------------------------- ----------------------------
AKAMAI NETWORK24 INTERVU ADJUSTMENTS COMBINED
-------- --------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Revenue............................ $ 3,986 $ 735 $11,834 $ -- $ 16,555
-------- ------- -------- --------- -----------
Operating expenses:
Cost of services................. 9,002 768 5,160 -- 14,930
Engineering and development...... 11,749 463 10,094 (169)(3) 22,137
Sales, general and
administrative................ 29,621 2,270 26,659 (1,725)(3) 56,825
Amortization of intangible
assets........................ 47 -- 86 954,471(2) 954,604
Charges associated with the NBC
Strategic Alliance
Agreement..................... -- -- 17,194 -- 17,194
Equity-related compensation...... 10,005 -- -- -- 10,005
-------- ------- -------- --------- -----------
Total operating expenses...... 60,424 3,501 59,193 952,577 1,075,695
-------- ------- -------- --------- -----------
Operating loss..................... (56,438) (2,766) (47,359) (952,577) (1,059,140)
Interest income, net............... 2,269 62 3,968 -- 6,299
-------- ------- -------- --------- -----------
Loss from continuing operations.... $(54,169) $(2,704) $(43,391) $(952,577) $(1,052,841)
======== ======= ======== ========= ===========
Loss from continuing operations per
common share:
Basis and diluted................ $ (1.80) $ (25.79)
======== ===========
Weighted average number of common
shares:
Basis and diluted................ 30,177 10,645(1) 40,822
======== ========= ===========
</TABLE>
F-3
<PAGE> 4
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS
OF CONTINUING OPERATIONS FOR THE PERIOD ENDED SEPTEMBER 30, 2000
(in thousands, except per share data)
<TABLE>
<CAPTION>
HISTORICAL PRO FORMA
-------------------------------- --------------------------
AKAMAI NETWORK24 INTERVU ADJUSTMENTS COMBINED
--------- --------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Revenue............................. $ 52,522 $ 80 $ 6,606 $ -- $ 59,208
--------- ------- -------- --------- ---------
Operating expenses:
Cost of services............... 37,465 241 2,576 -- 40,282
Engineering and development.... 38,198 149 5,151 -- 43,498
Sales, general and
administrative............... 111,072 764 15,707 -- 127,543
Amortization of intangible
assets....................... 436,780 -- 52 274,636(2) 711,468
Acquired in-process research
and development.............. 1,372 -- -- (1,372)(4) --
Equity-related compensation.... 21,263 -- -- -- 21,263
--------- ------- -------- --------- ---------
Total operating
expenses................ 646,150 1,154 23,486 273,264 944,054
--------- ------- -------- --------- ---------
Operating loss...................... (593,628) (1,074) (16,880) (273,264) (884,846)
Interest income, net................ 11,052 6 2,022 -- 13,080
--------- ------- -------- --------- ---------
Loss before provision for income
taxes............................. (582,576) (1,068) (14,858) (273,264) (871,766)
Provision for income taxes..... 132 -- -- -- 132
--------- ------- -------- --------- ---------
Loss from continuing operations..... $(582,708) $(1,068) $(14,858) $(273,264) $(871,898)
========= ======= ======== ========= =========
Loss from continuing operations per
common share:
Basis and diluted.............. $ (6.84) $ (9.53)
========= =========
Weighted average number of common
shares:
Basic and diluted.............. 85,244 6,254(1) 91,498
========= ========= =========
</TABLE>
F-4
<PAGE> 5
NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL INFORMATION
On February 10, 2000, Akamai acquired all of the outstanding common and
preferred stock of Network24 in exchange for 620,872 shares of Akamai common
stock and $12.5 million in cash. Akamai also issued options and warrants
exercisable for 195,862 shares of Akamai stock in exchange for all outstanding
options and warrants exercisable for Network24 common stock. The value of the
acquisition was $203.6 million based on the fair value of the consideration paid
plus direct acquisition costs.
On April 20, 2000, Akamai acquired all of the outstanding common and
preferred stock of INTERVU in exchange for 10.0 million shares of Akamai common
stock. Akamai also issued options and warrants exercisable for 2.2 million
shares of Akamai common stock in exchange for all outstanding options and
warrants exercisable for INTERVU common stock. The value of the acquisition was
$2.8 billion based on the fair value of the consideration paid plus direct
acquisition costs.
Both acquisitions were accounted for using the purchase method of
accounting. The purchase price for the respective acquisitions was allocated as
follows:
<TABLE>
<CAPTION>
INTERVU NETWORK24
-------- ---------
(MILLIONS)
<S> <C> <C>
Tangible net assets..................................... $ 126.1 $ 2.7
Intangible assets....................................... 2,657.2 200.9
In-process R&D.......................................... 1.4 --
-------- ------
Total purchase price.................................... $2,784.7 $203.6
======== ======
</TABLE>
The intangible assets are being amortized over their estimated useful lives
of two to three years.
The unaudited pro forma combined condensed financial information gives
effect to the above acquisitions as if the transactions had taken place on
January 1, 1999. INTERVU's and Network24's historical statements of operations
for the nine months ended September 30, 2000 reflect the operating activity of
INTERVU for the period January 1 through April 20, 2000 and the operating
activity of Network24 for the period January 1 through February 10, 2000.
The following adjustments have been reflected in the unaudited pro forma
combined condensed financial information:
(1) To reflect the shares issued in consideration for the acquisitions. For
the period ended September 30, 2000, Akamai's historical weighted
average common shares outstanding includes the shares issued in
consideration of the acquisitions for the period from the acquisition
date to September 30, 2000.
(2) To eliminate the amortization of historical goodwill and intangible
assets previously recorded by INTERVU and to record amortization
expense for the intangible assets recorded as a result of the
allocation of purchase price of INTERVU and Network24.
(3) To eliminate equity-related compensation recorded by INTERVU and
Network24 which would not have been recorded had the acquisitions taken
place on January 1, 1999.
(4) To eliminate the one-time write-off of in-process research and
development acquired in the INTERVU acquisition.
F-5
<PAGE> 6
INTERVU INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
<TABLE>
<CAPTION>
MARCH 31 DECEMBER 31
2000 1999*
----------- -----------
(UNAUDITED)
<S> <C> <C>
Current assets:
Cash and cash equivalents................................. $ 62,735 $ 48,097
Short-term investments.................................... 40,637 66,950
Accounts receivable, less allowance for doubtful accounts
of $838 and $788, respectively......................... 3,680 5,373
Prepaid and other current assets.......................... 1,171 925
-------- --------
Total current assets.............................. 108,223 121,345
Property and equipment, net................................. 17,357 13,858
Other assets................................................ 7,789 7,516
-------- --------
Total assets:..................................... $133,369 $142,719
======== ========
Current liabilities:
Accounts payable.......................................... $ 5,430 $ 2,916
Accrued liabilities....................................... 2,461 774
Accrued payroll and other................................. 2,117 2,144
-------- --------
Total current liabilities:........................ 10,008 5,834
Other long-term liabilities................................. 550 671
Redeemable convertible preferred stock, $0.001 par value:
Series H, 30,000 shares issued and outstanding at March
31, 2000 (unaudited) and December 31, 1999,
respectively........................................... 30,000 30,000
Stockholders' equity:
Convertible preferred stock, $0.001 par value:
Authorized -- 5,000,000 shares:
Series G convertible preferred stock,
Designated -- 1,280,000 shares; Issued and
outstanding -- 1,280,000 shares at March 31, 2000
(unaudited) and December 31, 1999, respectively........ 1 1
Common stock, $0.001 par value: Authorized -- 45,000,000
shares; Issued and outstanding -- 15,753,268 shares and
15,525,821 shares at March 31, 2000 (unaudited) and
December 31, 1999, respectively........................... 16 15
Additional paid-in capital.................................. 204,418 203,823
CNN prepaid advertising..................................... (18,422) (20,000)
Deferred compensation....................................... (6,743) (8,943)
Accumulated other comprehensive (loss)...................... (190) (99)
Accumulated deficit......................................... (86,269) (68,583)
-------- --------
Total stockholders' equity........................ 92,811 106,214
-------- --------
Total liabilities and stockholders' equity........ $133,369 $142,719
======== ========
</TABLE>
------------------------
* Derived from audited consolidated financial statements incorporated by
reference into this registration statement.
See notes to condensed consolidated financial statements.
F-6
<PAGE> 7
INTERVU INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS
ENDED MARCH 31,
---------------------
2000 1999
--------- --------
(UNAUDITED)
<S> <C> <C>
Revenues.................................................... $ 5,015 $ 1,333
Cost of revenues............................................ 3,080 544
-------- -------
Gross margin................................................ 1,935 789
Operating expenses:
Research and development.................................. 4,143 1,563
Sales and marketing....................................... 8,212 2,136
General and administrative................................ 8,438 1,381
Charges associated with the NBC Strategic Alliance
Agreement.............................................. 489 --
-------- -------
Total operating expenses.................................... 21,282 5,080
-------- -------
Loss from operations........................................ (19,347) (4,291)
Interest income............................................. 1,661 334
-------- -------
Net loss.................................................... $(17,686) $(3,957)
======== =======
Basic and diluted net loss per share........................ $ (1.13) $ (0.36)
======== =======
Shares used in calculating basic and diluted net loss per
share..................................................... 15,584 11,005
</TABLE>
See notes to condensed consolidated financial statements.
F-7
<PAGE> 8
INTERVU INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS
ENDED MARCH 31,
---------------------
2000 1999
--------- --------
(UNAUDITED)
<S> <C> <C>
OPERATING ACTIVITIES:
Net loss.................................................. $(17,686) $(3,957)
Adjustments to reconcile net loss to net cash used in
operating activities:
Recognition of lapse of NBC's obligation to return
shares of Series G convertible preferred stock issued
under the NBC Strategic Alliance Agreement............ 489 --
Amortization of deferred compensation.................. 2,200 118
Depreciation and amortization.......................... 3,380 251
Changes in operating assets and liabilities:
Accounts receivable, net............................... 1,693 (927)
Prepaid and other current assets....................... (246) (258)
Accounts payable....................................... 2,514 (98)
Accrued payroll and other.............................. (27) (61)
Other liabilities...................................... 876 (5)
-------- -------
Net cash used in operating activities..................... (6,807) (4,937)
INVESTING ACTIVITIES:
Purchase of investments................................... (4,677) (1,928)
Proceeds from sale or maturity of investments............. 30,899 4,700
Purchases of property and equipment....................... (5,252) (1,058)
-------- -------
Net cash provided by investing activities................. 20,970 1,714
FINANCING ACTIVITIES:
Issuance of common stock.................................. 596 187
Payment on long-term obligations.......................... (121) --
-------- -------
Net cash provided by financing activities................. 475 187
-------- -------
Net change in cash and cash equivalents..................... 14,638 (3,036)
Cash and cash equivalents, beginning of period.............. 48,097 13,086
-------- -------
Cash and cash equivalents, end of period.................... $ 62,735 $10,050
======== =======
</TABLE>
See notes to condensed consolidated financial statements.
F-8
<PAGE> 9
INTERVU INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. THE COMPANY AND BASIS OF PRESENTATION
InterVu Inc. (the "Company" or "INTERVU") was incorporated in Delaware on
August 2, 1995 to provide services for the delivery or "streaming" of live and
on-demand video and audio content over the Internet. The Company utilizes a
distributed network to accelerate the speed and improve the quality of video and
audio delivery.
The accompanying unaudited interim condensed consolidated financial
statements as of and for the three months ended March 31, 1999 and 2000,
together with the related notes are unaudited and reflect all adjustments,
consisting only of normal recurring adjustments, which in the opinion of
management are necessary for a fair statement of the results of the interim
periods. The interim condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information. Consequently, these interim financial statements do not
include all disclosures normally required by generally accepted accounting
principles for annual financial statements. Results for the interim periods are
not necessarily indicative of results for the entire fiscal year.
2. CONTINGENCIES
The Company is party to certain claims and legal actions arising in the
normal course of business. Although the ultimate outcome of these matters is not
presently determinable, management believes that the resolution of all such
pending matters will not have a material adverse affect on the Company's
financial position or liquidity; however, there can be no assurance that the
ultimate resolution of these matters will not have a material impact of the
Company's results of operations in any period.
3. SUBSEQUENT EVENTS
On April 20, 2000, the Company was acquired by Akamai Technologies, Inc.
("Akamai") and became a wholly-owned subsidiary of Akamai. In the transaction,
Akamai acquired all of the outstanding common and preferred stock of the Company
in exchange for 10.0 million shares of Akamai common stock. Akamai also issued
options and warrants exercisable for 2.2 million shares of Akamai common stock
in exchange for all outstanding options and warrants exercisable for INTERVU
common stock.
F-9
