<PAGE> 1
Prospectus Supplement No.1
Filed pursuant to Rule 424(b)(3)
Registration Statement No 333-15169
PROSPECTUS SUPPLEMENT DATED JANUARY 2, 1997
TO PROSPECTUS DATED DECEMBER 18, 1996
METRICOM, INC.
$45,000,000
8% Convertible Subordinated Notes Due 2003
and
Shares of Common Stock Issuable Upon Conversion Thereof
This Prospectus Supplement should be read in conjunction with the
Prospectus dated December 18, 1996 (the "Prospectus"). The table on pages 28 and
29 of the Prospectus setting forth information concerning the Selling
Securityholders is superceded by the following table:
SELLING SECURITYHOLDERS
The following table sets forth the names of the Selling Securityholders,
the number of shares of Common Stock beneficially owned by each of them as of
December 9, 1996 and the principal amount of Notes and number of Conversion
Shares that may be offered pursuant to this Prospectus. This information is
based upon information provided by U.S. Trust Company of California, N.A.,
trustee under the Indenture, and by or on behalf of the Selling Securityholders.
The Selling Securityholders may offer all, some or none of their Notes or
Conversion Shares.
<TABLE>
<CAPTION>
SHARES OF COMMON NOTES OR CONVERSION
STOCK BENEFICIALLY SHARES BEING OFFERED
OWNED ------------------------
PRIOR TO OFFERING(1)(3) NUMBER OF
----------------------- PRINCIPAL CONVERSION
NAME NUMBER PERCENT(2) AMOUNT SHARES(3)(4)
- --------------------------------------------- -------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Commonwealth Life Insurance Camden
Nonenhanced................................ 68,728** * $1,000,000 68,728
Global Bermuda Limited Partnership........... 185,567** 1% 2,700,000 185,567
Joseph J. Ritchie............................ 418,312(5) 3% 2,900,000 199,312
August J. Pelizzi, Jr........................ 6,872** * 100,000 6,872
Michael Angelo, L.P.......................... 17,182** * 250,000 17,182
Raphael, L.P................................. 17,182** * 250,000 17,182
Marcia Diamond, Trustee, The Marcia Diamond
Trust of 1995.............................. 7,872(6) * 100,000 6,872
Laterman Strategies 90's LP.................. 21,374** * 311,000 21,374
Laterman & Company........................... 14,707** * 214,000 14,707
Offshore Strategies Ltd...................... 36,082** * 525,000 36,082
Lindner Growth Fund.......................... 1,861,464(7) 11% 7,500,000 515,463
Lindner Dividend Fund........................ 1,716,427(7) 10% 15,000,000 1,030,927
Father Schmidt Foundation for Youth.......... 6,872** * 100,000 6,872
Lautze & Lautze Accountancy Corp............. 6,872** * 100,000 6,872
RCB Boise General Investment................. 6,872** * 100,000 6,872
Santa Clara Missions Cemetery................ 10,309** * 150,000 10,309
St. Mary's Pooled Endowment.................. 17,182** * 250,000 17,182
RCASF High School Teachers Pension........... 13,745** * 200,000 13,745
Pabst Brewing Co............................. 41,237** * 600,000 41,237
SCU Schmidt Foundation....................... 13,745** * 200,000 13,745
San Felipe Del Rio Foundation................ 6,872** * 100,000 6,872
Lynch Loofbourrow et al Pension.............. 13,745** * 200,000 13,745
McLean Trust................................. 13,745** * 200,000 13,745
Salesian Society--General.................... 6,872** * 100,000 6,872
St. Patrick's Seminary--Brd Dir End.......... 13,745** * 200,000 13,745
TCW Convertible Value L.P.................... 14,776** * 215,000 14,776
TCW Convertible Strategy Fund................ 43,642** * 635,000 43,642
</TABLE>
<PAGE> 2
<TABLE>
<CAPTION>
SHARES OF COMMON NOTES OR CONVERSION
STOCK BENEFICIALLY SHARES BEING OFFERED
OWNED NUMBER OF
PRIOR TO OFFERING(1)(3) PRINCIPAL CONVERSION
NAME NUMBER PERCENT(2) AMOUNT SHARES(3)(4)
- --------------------------------------------- ------------ --- ---------- ---------
<S> <C> <C> <C> <C>
TCW Convertible Value Fund................... 47,422** * 690,000 47,422
TCW Convertible Securities Fund.............. 130,927** 1% 1,905,000 130,927
Cincinnati Bell Telephone Convertible Value
Fund....................................... 25,085** * 365,000 25,085
TCW/DW Income & Growth Fund.................. 16,494** * 240,000 16,494
Southern New England Telephone............... 6,872** * 100,000 6,872
Dow Chemical Retirement Plan................. 17,182** * 250,000 17,182
Ohio Carpenters' Pension Trust............... 6,872** * 100,000 6,872
Philip Morris Master Trust................... 34,364** * 500,000 34,364
State Retirement and Pension Plan of
Maryland................................... 51,546** * 750,000 51,546
Bechtel Trust & Thrift Plan.................. 6,872** * 100,000 6,872
North Pole Capital Investments Limited....... 34,364** * 500,000 34,364
KA Trading L.P............................... 150,378** 1% 2,188,000 150,378
KA Management Limited........................ 53,402** * 777,000 53,402
Smith Barney Inc............................. 160,481** 1% 2,335,000 160,481
</TABLE>
- ---------------
* Less than one percent.
** Represents Conversion Shares.
(1) Beneficial ownership is determined in accordance with the Rules of the SEC
and generally includes voting or investment power with respect to
securities. Except as otherwise indicated by footnote, and subject to
community property laws where applicable, the persons named in the table
have sole voting and investment power with respect to all shares of Common
Stock shown as beneficially owned by them.
(2) Based on 13,506,174 shares of Common Stock outstanding on December 9, 1996
and assuming 3,092,783 Conversion Shares.
(3) Assumes a conversion price of $14.55 per share and a cash payment in lieu of
any fractional interest.
(4) Assuming the conversion of all the Notes and the sale by the Selling
Securityholders of all of the Conversion Shares, (a) none of the Selling
Securityholders will beneficially own shares of Common Stock following the
offering except shares of Common Stock other than Conversion Shares set
forth in notes 5, 6 and 7 below, and (b) none of the Selling
Securityholders will beneficially own more than one percent of the
16,594,122 shares of Common Stock outstanding (based on the number of
shares outstanding on December 9, 1996 and 3,092,783 Conversion Shares)
except Joseph J. Ritchie (1%), Lindner Growth Fund (8%) and Lindner
Dividend Fund (4%).
(5) Includes 219,000 shares of the Company's Common Stock held by Mr. Ritchie.
(6) Includes 1,000 shares of the Company's Common Stock held by Marcia Diamond,
Trustee, The Marcia Diamond Trust of 1995.
(7) A total of 3,932,891 shares are held by entities affiliated with Ryback
Management Corporation, including 1,861,464 shares (of which 515,463 are
Conversion Shares) held by Lindner Growth Fund, 1,716,427 shares (of which
1,030,927 are Conversion Shares) held by Lindner Dividend Fund and 355,000
shares held by other entities affiliated with Ryback Management
Corporation. Ryback Management Corporation has sole voting and dispositive
power over 3,922,891 of such shares, including all of those held by Lindner
Growth Fund and Lindner Dividend Fund. Ryback Management Corporation
disclaims beneficial ownership of the shares in which it has no pecuniary
interest.
Other than as set forth in the table, none of the Selling Securityholders
listed above had any material relationship with the Company other than as a
result of ownership of the Notes or Common Stock, within the three-year period
ending on the date of this Prospectus. Additional Selling Securityholders or
other information concerning Selling Securityholders may be set forth in
Supplements to this Prospectus from time to time. Up to $45,000,000 aggregate
principal amount of Notes may be offered hereby.
Because the Selling Securityholders may offer all or some of the Notes that
they hold and/or Conversion Shares pursuant to the offering contemplated by this
Prospectus, and because there are currently no agreements, arrangements or
understandings with respect to the sale of any of the Notes or Conversion Shares
by the Selling Securityholders, no estimate can be given as to the principal
amount of Notes or Conversion Shares that will be held by the Selling
Securityholders after completion of this offering.
THE DATE OF THIS PROSPECTUS SUPPLEMENT IS JANUARY 2, 1997
S-2
