File No. 33-99212
Filed pursuant to Rule 424(b)(3)
and Rule 424(c)
PROSPECTUS SUPPLEMENT NO. 1
(To Prospectus dated January 29, 1996)
ARI NETWORK SERVICES, INC.
COMMON STOCK
This Prospectus Supplement updates and
supplements the Prospectus dated January 29, 1996,
which was filed with the Securities and Exchange
Commission in connection with the Company's
registration statement on Form S-2, Registration
No. 33-99212 (the "Registration Statement").
From January 29, 1996, through the date of
this Prospectus Supplement, the Company sold 500,000
shares of Common Stock covered by the Registration
Statement at $2.75 per share. The Company has changed
the offering price to $2.125 per share.
Effective March 27, 1996, Mr. Richard A.
Abdoo resigned as a director of the Company.
For the nine months ended April 30, 1996, the
Company incurred a loss of ($3.2 million), or ($0.26)
per share, on net revenues of $3.6 million, compared to
a loss of ($3.7 million), or ($0.31) per share, on net
revenues of $3.8 million in the nine months ended April
30, 1995.
On April 30, 1996, the WITECH line of credit
was amended to increase the available borrowing
thereunder from $1.5 million to $2.0 million until June
30, 1996, at which time all borrowings over $1.5
million and interest thereon must be repaid. Proceeds
of this offering must first be used to repay any
borrowing (and interest thereon) under the WITECH line
in excess of $1.5 million. Because the borrowings
under the WITECH line were not reduced to $1.5 million
by June 30, 1996, all borrowings in excess of $1.5
million bear interest at the prime rate plus 6.0% from
June 30, 1996 until repaid in full. As of July 10,
1996, the Company had borrowed the full $1,500,000
under the senior line of credit and $1,995,000 under
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the WITECH line. On May 31, 1996, the net worth
covenant in the Company lines of credit was reduced
from a minimum of $6.5 million to a minimum of $5.3
million. The Company's lines of credit expire on
December 31, 1996.
The Company will require additional financing
in fiscal 1996 and 1997 in order to meet its capital
requirements for operations and development
investments. WITECH has not yet indicated whether it
intends to financially support the Company during
fiscal 1997.
The date of this Prospectus Supplement is July 10, 1996
