<PAGE> 1
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Global Village Communication, Inc.
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(Name of person(s) filing proxy statement if other than the Registrant)
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DESCRIPTION OF CONTENT OF SLIDES AND ASSOCIATED AUDIO PRESENTATION
TO BE POSTED ON THE
GLOBAL VILLAGE COMMUNICATION, INC. WEBSITE
@ www.globalvillage.com
INTRODUCTORY PAGE PRECEDING THE PRESENTATION
Overall Page Layout:
The page is separated into two horizontal frames. The Company's logo
and name appear in the upper left corner of the top frame of the
page. Directly below it is the title "Global Village Presents Its
New Strategy". To the right of the name and logo is a photograph of
Neil Selvin the Company's President and Chief Officer.
The lower frame is divided into two vertical columns. The left column
begins with the title, "Please read the following disclaimer before
viewing the presentation:" and continues with the following text:
Portions of this presentation contain forward-looking statements.
Investors are cautioned that all forward-looking statements involve
risk and uncertainties. Specifically, the agreement among the parties
is subject to certain closing conditions, including the receipt of
consents from both companies' lenders, no material adverse change in
the companies' businesses, and the approval of Global Village
stockholders. The Company's planned launch of its server products is
dependent upon the completion of the development of the product which
the Company believes can be resolved expeditiously, however, the
Company may have difficulty resolving these issues, or any other
issues that may arise, in a timely manner, which could delay the
planned launch of the new OneWorld Systems communications server
product line.
The Company's statements regarding its revenue expectations are
preliminary and are dependent on certain assumptions relating to the
introduction and market acceptance of the new products. Commercial
acceptance of these products is dependent on certain factors
including the Company's sales and marketing efforts, technical
reviews by third parties, introductions of new technologies or
standards, performance of the Company's distributors and suppliers
and announcement by the Company's competitors. Many of the Company's
future competitors have substantially greater financial, technical,
sales, marketing and other resources, as well as greater name
recognition and a larger customer base, than the Company.
The Company's statements regarding profitability, gross margin and
operating expenses are based on certain assumptions regarding the
Company's revenue expectations, sales and marketing costs, costs of
production and overhead costs. In addition, the Company may face
pricing pressure, which could lead to reductions in the average sales
price of the Company's products and could have a material adverse
effect on gross margins. There is no assurance that the Company will
ever achieve profitability.
OneWorld Systems products will have a significantly higher selling
price than many of the Company's current products and will require
the Company to expand its VAR channel. There can be
<PAGE> 3
no assurance that the Company will be successful in establishing an
effective distribution channel for its new products. The agreement
with Boca Research, Inc. relating to the sale of the Company's Modem
Business is subject to certain closing conditions, including the
receipt of consents from both companies' lenders, no material adverse
change in the companies' businesses, and the approval of Global
Village stockholders.
It is not the Company's practice to provide forward-looking
information with respect to anticipated product launches, revenue,
gross margins, profitability, or operating expenses and the Company
does not intend to provide such information in the future. Moreover,
the forward-looking statements are based on the information presently
available to the Company, and the Company does not believe that it
has a duty to update the information in the following forward-looking
statements and does not intend to update such information.
The right vertical column starts with the headline, "See & Hear the
Global Village Presentation using RealPlayer." Below that caption are
two buttons, depicted as globes. The label beside the first button
reads, "For 28.8 modems." The second is labeled "For ISDN & above"
Below the buttons are the following instructions. The words presented
in all capital letters represent hot links to their respective web
sites:
The Power Point presentation required the RealPlayer. Click HERE
to download.
Click HERE for the text version of the Global Village
Presentation. (No RealPlayer required.
The page remains on the web browser's window for the duration of the
presentation, which is seen in RealPlayer window. If the user chooses
to view the text only presentation this page closes as the page
containing miniature slides and a transcription of Mr. Selvin's
discussion appears.
THE SLIDE AND ASSOCIATED AUDIO PRESENTATION
The background for each slide depicts an aerial view of the North
American continent with the Global Village Communication Inc. logo
superimposed in the lower right corner of the page. All pages are
similar in layout, having a header beginning in the upper left
corner. Below the header line is one or more bullet points
highlighting the topics presented in the audio presentation
transcribed below. For each slide, the text and pictoral information
laid out on this background is described below.
Slide 1
Textual Content:
None
Other Visual Content:
Centered on the slide is the Company's logo. Beneath it is the
Company's name, "Global Village Communication."
"Hello. I'm Neil Selvin, president and chief executive officer of
Global Village Communication. This is a period of great change for
Global Village and I'm very excited to be able to introduce you not
only to what we've done recently but also to our new direction as we
transform the Company. Let me begin by talking about the steps we've
taken to execute this transformation and then spend most of the
presentation talking about our new direction and why we're very
excited about the opportunity for Global Village."
Slide 2
Textual Content:
<PAGE> 4
Header: Fundamental change in business direction
Bullet points: * Announced sale of modem business
* Refocus company on small office communications
servers
Other Visual Content:
None
Accompanying Audio Content:
"First of all, there is a fundamental change in our business
direction. On March 31, 1998 we announced that we were selling our
Modem Business to Boca Research and that we were going to take the
Company in a new direction. We will focus on the small and medium
size office market and will introduce a new family of communications
servers."
Slide 3
Textual Content:
Header: Sale of modem business
Bullet points: * Industry consolidation
* Larger size required for purchasing,
manufacturing power
* Continued decline in size of Macintosh market
* Maximize current value of Global Village
brand, business
Visual Content:
None
Accompanying Audio Content:
"Why did we decide to sell the Modem Business? There are several
factors that influenced this decision. First of all, there has been a
significant amount of industry consolidation that's occurred over the
last couple of years. 3Com's purchase of US Robotics, Hayes
acquisition of Cardinal, and other transactions have made it clear
that in today's modem business, larger size, which improves
purchasing power, manufacturing efficiency, and channel strength, is
transforming the nature of the industry. At Global Village, although
we've been very successful differentiating our products based on
software and user interface, our ability to compete has been severely
impacted by the continuous decline in the size of the Macintosh
market.
The combination of the decline in the size of the Mac market and the
deteriorating economics for small players in the Windows market
convinced us that maximizing the current value of the Global Village
brand and Modem Business would best be accomplished by selling the
Modem Business to a larger player, thereby leveraging off of the
consolidation within the industry. In addition we also have a new
product line that we're preparing to launch, allowing us to refocus
the Company in an area where we've had some experience over the past
several years. I'll talk more about that in just a moment."
Slide 4
Textual Content:
Header: Sale of modem business
Bullet points: * Boca Research buying modem business for $10M
* Structured as an asset sale
<PAGE> 5
* Boca gets:
* Global Village brand
* Individual use products
* Inventory, receivables, liabilities
* Intellectual property, product designs
* Global Village remains a legal
entity, changes name
* Sale expected to close in June 1998
Accompanying Audio Content:
"First, here are the specifics of what we announced on March 31st: We
signed a definitive agreement to sell the Modem Business to Boca
Research for $10 million in a combination of cash and notes. This
transaction is structured as an asset sale so we are not selling the
Company, we are selling the assets of the Modem Business. The Company
itself, although it will change its name, will continue as the same
legal entity, will continue to be public, and will continue to have
the same stockholder base we have today.
What is Global Village selling to Boca Research? We are selling the
Global Village brand, all of our individual use products, the
intellectual property associated with these products, the inventory,
the accounts receivable, certain fixed assets, and certain
liabilities including the responsibility for product warranty,
returns, and customer support for the Modem Business.
About 60 of the people at Global Village will become Boca Research
employees. About another 60 people will remain with the Company,
working on the new communications server product line.
As I mentioned, Global Village retains its legal entity status and we
will change the name of the Company. As we announced in early April,
the name of the Company will change once this transaction closes and
will become OneWorld Systems. The symbol under which it will trade on
NASDAQ will be OWLD. Your shares in Global Village will automatically
become shares in OneWorld Systems.
The sale of the Modem Business is expected to close in June of this
year. If you were a Global Village stockholder as of April 24, you
should have received proxy materials, allowing you to vote and to
participate in the Shareholder Meeting scheduled for June 8."
Slide 5
Textual Content:
Header: New focus - small and medium
Bullet point: * Large, untapped market opportunity
Visual Content:
On the right side of this slide there are three pictorial windows
descending towards the bottom of the slide. The first depicts a group
of people apparently conducting a meeting while seated at a
conference room table. The second window depicts another group of
four people looking into a binder or book and discussing its
contents, and the third window depicts two men seated outside, one of
which is working on a laptop computer.
Accompanying Audio Content:
<PAGE> 6
"Our new focus is the small and medium sized office market. We define
this as offices that typically have 10-300 people. Today there are
millions of businesses in the United States, Canada and around the
rest of the world who fit that profile, organizations without a large
amount of IS expertise, who typically do have or are getting networks
installed in their offices, and who will experience a dramatic
increase in the kind of data communications that they need to
interact with the world around them. It is clearly a large,
attractive market."
Slide 6
Textual Content:
Header: New focus - small and medium
Bullet points: * Large, untapped market opportunity
* Fits Global Village strengths:
* Understanding the user
* Software and user interface
* Hardware/software integration
Visual Content:
To the right of the second bullet point is a pictorial window that
depicts a group of people standing around a computer terminal while a
person seated at the terminal appears to explain something to them.
Accompanying Audio Content:
"A second reason for our focus on this market is that it's a good fit
with our traditional core competencies. At Global Village, we built
our reputation and won a number of awards over the last several years
because we understand the user. We identify with, and are able to
design products, that reflect how ordinary computer users think.
Contrast that with how a number of our competitors in the small
business market think. To them, the end-user is a network guru. To
them, end users are people who speak fluent UNIX or IOS. At Global
Village, an end user is someone like you or me, people who sit at
their desks working, logging onto the Internet, sending faxes,
dialing in from the road, doing the real kinds of things that
everyday people do. We have always focused on software and user
interface as the core competencies of the Company.
We also have a competency in hardware software integration. We have
always built hardware but we have consistently invested the majority
of our development resources in software, and then merged the
software and hardware into a complete solution, and that is exactly
what we will continue to do. So, the small and medium office market
is not only large, it also fits well with Global Village's
traditional strengths."
Slide 7
Textual Content:
Header: New focus - small and medium
Bullet points: * Large, untapped market opportunity
* Fits Global Village strengths:
* Understanding the user
* Software and user interface
* Hardware/software integration
* Existing track record
<PAGE> 7
Visual Content:
To the right of the bullet points is a graphic that depicts roughly
twenty servers stacked on top of one another, above which is printed
the number 13,000.
Accompanying Audio Content:
"We also have an existing track record in this market. Since 1994 we
have been selling small office servers in the Macintosh market and
have over 13,000 installed today. These servers are easy to install,
are plug and play, and they offer multiple communications functions.
They allow people to use remote access, send and receive faxes, log
onto the Internet or AOL, and so on. The success of our previous
communications servers have allowed us to build an understanding of
this market during the last several years. This track record and
experience give us an installed base of users who are very satisfied
with our product. One of the things we've learned in surveying our
installed base is that their number one need that they would like to
see us solve is an ability to bring this capability that they have
today into a cross-platform environment, because as you would expect,
most of these Macintosh networks are now mixed networks --supporting
both Mac and Windows users."
Slide 8
Textual Content:
Header: Existing products don't meet market needs
Bullet point: * Single function products
Visual Content:
In the middle of the slide beneath the bullet point is a depiction of
a man with both hands to his face appearing to look with some
bewilderment at a number of server products that are depicted in a
circle all around him.
Accompanying Audio Content:
"Let me address some of the problems that we see in products
available today. The first problem facing small businesses that we've
identified is that most products handle only a single function. So
the business owner is faced with buying a fax server from one
company, a remote access server from another company, a router from
another company, Internet access from somebody else -- in short, it's
a mess. There's a whole collection of products that have to be able
to work together in order to satisfy the breadth of communications
capabilities needed by a small company. And as you would expect when
you see an organization faced with having to purchase and administer
and manage multiple products from multiple vendors, with no common
user interface, no common user administration, security issues and so
on, it becomes a nightmare for the small business manager."
Slide 9
Textual Content:
Header: Existing products don't meet market needs
Bullet points: * Single function products
* Difficult to administer and manage
Visual Content:
The visual content of this slide is a duplicate of the immediately
preceding slide.
Accompanying Audio Content:
<PAGE> 8
"The second thing that we find is that these products tend to be
difficult to administer and manage. Many of them have command line or
UNIX interfaces, they all have completely different administration
software programs, and none of them work together. If an employee
leaves or joins the company, someone has to add or delete all of the
passwords and all of the authorizations required to allow that person
to have Internet access, to log in from home, to log in from the
road, to send a fax and so on. You can imagine the number of hours
required for somebody to keep all of those lists current and up to
date. It's clear that in trying to solve the real problems of the
small office today, there should be easier ways to do things then
what today's products require."
Slide 10
Textual Content:
Header: Existing products don't meet market needs
Bullet points: * Single function products
* Difficult to administer and manage
* Expensive
* Capital costs
* Monthly telephone costs
* Lack of expandability
Visual Content:
None
Accompanying Audio Content:
"Finally, look at the costs of not only purchasing but supporting
this equipment. First of all, consider the capital costs. If a small
business buys a router, a remote access server, a fax server and
access to the Internet, they'll find themselves spending five, ten,
even fifteen thousand dollars on equipment just to accomplish these
functions. But that's only a part of it. Every one of those servers
that I've mentioned requires their own dedicated phone lines. Set up
a remote access server with 4, 8 or 16 ports, and you've tied up that
number of phone lines on that one function. Purchase a four or eight
port fax server, and you've tied up that number of phone lines on
that one function. Systems today don't allow business owners to share
phone lines among various functions. So, imagine that a typical small
office sends and receives faxes during the day and then uses remote
access at night. They've just doubled the required number of phone
lines and monthly telephone costs. It's an inefficient use of an
important element of running a small company -- the telecom cost.
Finally, lack of expandability for many of these small business
systems is a real problem. Frequently, these are fixed port devices.
Buy a 4 port or 8 port device and that's it. That's what you get. If
you want to upgrade that device to ISDN or T1 or add more ports
later, you get to buy another piece of equipment. Sometimes from a
different vendor. Or, even from the same vendor but with different
management software. It can be a real kluge to figure out how as a
small company you can grow as your data communication needs grow."
Slide 11
Textual Content:
Header: The OneWorld Solution
Bullet points: * Versatile
* Easy-to-use
<PAGE> 9
* Cost effective
* Expandable
Visual Content:
To the right of the bullet points is a depiction of a OneWorld server
product.
Accompanying Audio Content:
"It is these specific kinds of problems that the new OneWorld
solution addresses. The new OneWorld server is versatile, it's easy
to use, it's cost effective and it's expandable. I want to go into
each of these four points to demonstrate why a OneWorld server is a
better solution for a small office than having to put together
several pieces of equipment."
Slide 12
Textual Content:
Header: The OneWorld Solution - Versatile
Bullet points: * Multiple functions in a single product
* Internet access
* Routing
* Remote access
* Fax server
* Shared modem pool
Visual Content:
To the right of the sub-bullets is a depiction of a OneWorld server
product. Beneath it are three linked computer terminals and above it
are four lightning bolts reaching out to windows which depict,
respectively, the "America Online" logo and name, the "Netscape" logo
and name, a man sitting and working on a laptop computer, and a fax
machine.
Accompanying Audio Content:
"Let's talk first about versatility. The OneWorld server will offer
multiple functions in a single product. One server allows users
across the office to access the Internet, from their network, all at
the same time, it offers remote access so that people can dial in
from home or from the road, it's a full function fax server so that
users can send and receive faxes directly from their computer, and it
acts as a shared modem pool to provide access for terminal emulation
to a mainframe or individual access to an online service, such as
AOL. All of these functions operate all at the same time in a single
product. And the user doesn't have to do anything to reconfigure the
server. All he does is perform the function that he needs at the
moment. The server takes care of all the configuration necessary
behind the scenes so that the user's interaction is nothing more than
using his client software."
Slide 13
Textual Content:
Header: The OneWorld Solution - Versatile
Bullet points: * Multiple functions in a single product
* Internet access
* Routing
* Remote access
<PAGE> 10
* Fax server
* Shared modem pool
* Dynamic Port Allocation
Visual Content:
The visual content of this slide is identical to the immediately
preceding slide.
Accompanying Audio Content:
"The OneWorld server features a proprietary technology called
'Dynamic Port Allocation' that allows every port on the system to do
any function on the fly. Users can literally send faxes on a given
port, finish that and log into the Internet and as soon as that call
is complete allow that same port to act as a remote access server
with no user interaction required. This unique capability that we
have designed into our server allows a company to use the same
telephone lines to support multiple functions. There is no port
configuration required. There's no user setup required. All the user
does is click on the fax software or call into the server using his
standard Windows or Mac dial up software and the server reconfigures
the port to handle that service on the fly. This feature allows
businesses to save on monthly telephone line costs as well as to
expand the system with more functions over time."
Slide 14
Textual Content:
Header: The OneWorld Solution - Versatile
Bullet points: * Multiple functions in a single product
* Internet access
* Routing
* Remote access
* Fax server
* Shared modem pool
* Dynamic Port Allocation
* Simultaneous Windows and Mac users
Visual Content:
The visual content of this slide is identical to the immediately
preceding slide.
Accompanying Audio Content:
"And, the OneWorld server allows Windows and Mac users to access all
of these different functions simultaneously. A Macintosh user can
send a fax and when finished, that same port can support a remote
access connection for a Windows user on the road with no
reconfiguration required. The system takes care of all this behind
the scenes and on the fly. We believe that the OneWorld server will
be the most versatile communications server for a small business."
Slide 15
Textual Content:
Header: The OneWorld Solution - Easy to use
Bullet point: * Well recognized client software
Visual Content:
<PAGE> 11
Below the bullet point is a heading which reads "FaxWorks" beneath
which is a depiction of a FaxWorks PRO for Windows drop-down menu box
offering various fax options. To the left of the FaxWorks information
is the heading "GlobalFax" beneath which is a depiction of a
GlobalFax for MacIntosh drop-down menu box offering similar options.
Accompanying Audio Content:
"The OneWorld server is also easy to use. All of the required client
software is included with the system. Today, there are over 8 million
users of our fax software. Users of FaxWorks on Windows and
GlobalFax on the Mac can feel comfortable knowing that the software
they've grown used to and which has won many industry awards over the
last several years is the same software they will use on the network.
The server comes with additional client software that makes it easy
to use other functions as well."
Slide 16
Textual Content:
Header: The OneWorld Solution - Easy to use
Bullet points: * Well recognized client software
* One administration program for all functions
Visual Content:
Beneath the bullet points is a depiction of a window containing
server and port options for a hypothetical user to choose from.
Accompanying Audio Content:
"We have also designed an administration program that allows the
network administrator to configure the system easily. Using a
combination of other products requires that different administration
programs configure different ports to do different things in
different boxes. And it becomes a challenge to configure or add a
user or change a security authorization or password on all those
different systems. Here, every port, every function, and every user's
profile can be configured from one administration program."
Slide 17
Textual Content:
Header: The OneWorld Solution - Cost Effective
Bullet point: * Lower capital costs
Visual Content:
Beneath the bullet point is a rectangular box which offers two
contrasting communications server approaches. On the left is depicted
the multi-vendor approach: consisting of three columns, the first
contains a pictorial depiction of the item, the second lists the name
of the item and the third includes the cost for each item followed by
a total cost. The items listed and costs are as follows: a fax server
costing $4,000, a RAS server costing $4,000, and an Internet router
costing $2,000. The total cost of all these items is $10,000. On the
right is the OneWorld approach, consisting of a single OneWorld
server with a total cost of between $3,000 and $6,000.
Accompanying Audio Content:
<PAGE> 12
"The OneWorld server is a cost-effective solution. As I mentioned
before, it's easy to spend $10,000 or more assembling a multi-vendor
system to do the basic communication functions that small offices
need. Purchase a multi-port fax server, a remote access server and a
basic Internet router for a small office and by the time you're done,
it's easy to spend $10,000 or more. Purchase a single OneWorld server
and you'll spend $3-6,000 including all the software you need, the
ability to use various functions, all in a single, compact product."
Slide 18
Textual Content:
Header: The OneWorld Solution - Cost Effective
Bullet points: * Lower capital costs
* Fewer phone lines needed
* Lower monthly phone line costs
Visual Content:
This slide contains an identical rectangle and information
contained therein as the immediately preceding slide. The box fits on
the slide between the first and second bullet points.
Accompanying Audio Content:
"But, on top of that, users can save money through more effective
phone line usage. If a small business has to dedicate four or eight
lines each on fax and remote access and Internet access, at $100 or
$150 per month per line, they can waste thousands of dollars in
telephone costs per year. In a small office, paying for underused
telephone lines is a wasted overhead cost. Using a OneWorld server to
improve the usage of these lines and adapt on the fly can cut the
number of phone lines needed and lower monthly phone bills
accordingly."
Slide 19
Textual Content:
Header: The OneWorld Solution - Expandable
Bullet point: * Start with analog, grow to ISDN, T-1,
Frame relay, DSL
Visual Content:
Near the bottom margin of the slide is a pictorial depiction of a
OneWorld server product with five lightning bolts radiating outward
from the server product to the following captions: "Analog", "ISDN",
"T-1", "Frame Relay" and "DSL".
Accompanying Audio Content:
"The OneWorld server is expandable. Unlike other products that are
single port or fixed port products, users can start with a basic 56K
analog system and then plug in additional cards to grow their
bandwidth. Users will be able to upgrade to ISDN, T1, frame relay and
DSL in the future. The system is bandwidth expandable from as small
as 4 analog ports to a multi-port access concentrator with 28-30
ports in a single chassis."
Slide 20
Textual Content:
Header: The OneWorld Solution - Expandable
Bullet points: * Start with analog, grow to ISDN, T-1,
Frame relay, DSL
<PAGE> 13
* Grow functionality through software additions
* Protect the buyer's investment
* Expand the product family
Visual Content:
This slide is identical to the slide immediately preceding it with
the exception of an additional depiction of a CD-ROM to the left of
and linked to the OneWorld server product.
Accompanying Audio Content:
"Users will also be able to add functionality through software
upgrades. Because the software is stored within the server itself and
can be easily upgraded, a user could start with a single function
such as fax or remote access and add functionality by simply
purchasing additional software. The ability to upgrade the system not
only in bandwidth but also by adding additional software capabilities
protects the buyer's investment. Users can also add additional
servers on the network and manage them all from a single computer."
Slide 21
Textual Content:
Header: Target Market
Bullet points: * Small-to-medium sized offices
* Independent businesses
* Branch or satellite offices
* 10-300 people Have an existing local area
* Limited in-house expertise
* Need wide area communications
Visual Content:
To the right of the bullet points are three pictorial windows in
descending order which are identical to those described in slide 5.
Accompanying Audio Content:
"Let's look at the market that this product addresses. We are
targeting small to medium sized offices, typically independent
businesses or branch or satellite offices. Typically, they have 10 to
300 people. In the last four years, we've seen real estate offices,
insurance agencies, law offices, small manufacturing companies, even
a rock group, use our small business servers to communicate with the
world around them. These businesses typically have a local area
network such as Novell or Windows NT, and they usually have limited
in-house expertise. Often the person who sets up the network is
either a consultant or an employee who does this in his spare time.
These employees are not interested in learning UNIX commands, don't
want to know about router tables, and may not know, or care, what
TCP/IP is. But most of them are looking to expand their wide area
communications capabilities. They may have started with an AOL
account and a fax machine. Now they're worried about having websites
and global e-mail and remote access for their field sales force and
extranets for their clients and electronic storefronts. They may not
know how to do it but they know that if they can find solutions that
are easy to use, they'll be able to take these important steps."
<PAGE> 14
Slide 22
Textual Content:
Header: Market size
Bullet points: * 1.1M U.S. businesses today
* 70% use fax frequently
* $2 billion market by 2000
* 30% annual growth rate
Visual Content:
To the lower right of the bullet points is the following text:
"Source: IDC, Dataquest".
Accompanying Audio Content:
"This market is growing rapidly. There are over a million businesses
that fit the profile I've just described. They have a local area
network and they're adding wide area communications capabilities. The
number of these businesses is growing about thirty percent per year.
A recent survey indicates that 70% of them use fax as the most common
medium to exchange documents with their colleagues. Sources indicate
that this will be a $2 billion market by the year 2000."
Slide 23
Textual Content:
Header: Distribution and sales strategy
Bullet points: * Expand on current VAR channel
* Systematic lead generation
* Add corporate resellers
* Leverage current OneWorld installed base
Visual Content:
None
Accompanying Audio Content:
"Our distribution and sales strategy will focus initially on the
value-added reseller, or VAR, channel. In the last two years, we've
invested in building a VAR channel and we're expanding that channel
with a number of activities that we've begun already. We have a
systematic lead generation program being implemented. We expect to
add key corporate resellers that address the small office and branch
office market. And we're going to target the current OneWorld
installed base that we have today as an important market segment."
Slide 24
Textual Content:
Header: Key financial metrics
Bullet points: * Product launch in June/July
* Calendar 1999 revenue target: $10-15 million
* Gross margin percent in mid-fifties
* Profitability by latter half of 1999
Visual Content:
<PAGE> 15
To the lower right of the bullet points is a graph which depicts
Global Village's projected revenue in millions of dollars over the
three years beginning in 1998 and ending in the year 2000. In 1998,
the graph shows a range of projected revenue roughly between 0-$2M.
In 1999, the graph shows a range of projected revenue between
$10-$15M. In the year 2000, the graph shows a range of projected
revenue of between $20-$30M.
Accompanying Audio Content:
"Given our new product direction, a comparison to prior financial
results isn't particularly relevant. Let me talk instead about where
we see the business going. We expect to launch our new product line
in June or July. We've set a target for revenue in calendar 1999 of
about $10-15 million. We expect that gross margins will be in the
mid-fifties and we expect to reach profitability in the latter half
of 1999."
Slide 25
Textual Content:
Header: Summary
Bullet points: * New corporate direction
* Large, growing market
* Innovative, new product family
* Distinct competitive differentiation
Visual Content:
To the lower right of the bullet points is a graphic depicting the
planet Earth surrounded by various square and rectangular windows
with arrows going counterclockwise between them. The graphic
immediately above the planet Earth has the title "Internet Access",
and depicts the "Netscape" logo and name. Proceeding
counterclockwise, the next logo is titled "Shared modem pool", and
depicts the "America Online" logo and name. The next graphic is
titled "Global e-mail", and depicts a window with a hypothetical
e-mail user's in-box. The next graphic depicts a man sitting outside
and working on a laptop computer, and is titled "Remote Access". The
final graphic depicts a fax machine and is titled "Fax".
Accompanying Audio Content:
"In summary, Global Village is becoming a new company. It's an
exciting opportunity, with better growth prospects in a market that
is largely untapped today. It's a market where software, a focus on
user interface, and a complete, easy-to-use solution are important
differentiators, and we have traditionally fared well in such an
environment. We have a new, innovative product family. It's quite
different from typical, single-function products that exist today.
The competitive advantage that we bring is not only a genuine
understanding of ordinary users but an ability to provide client and
server software, integrated with internally developed hardware, that
will help us build a sustainable business aimed at the growing, small
to medium sized office market.
We're very excited about the future and the opportunity that this new
direction offers to our stockholders. I look forward to reporting on
our progress in the weeks and months ahead, and I look forward to
your continued support."
