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SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES EXCHANGE
ACT OF 1934
Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Only (as permitted by
Rule 14a-6(e)(2))
[ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[X] Soliciting Material Pursuant to Section 240.14a-12
CIDCO INCORPORATED
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
1) Title of each class of securities to which transaction applies:
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2) Aggregate number of securities to which transaction applies:
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3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee
is calculated and state how it was determined):
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4) Proposed maximum aggregate value of transaction:
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5) Total fee paid:
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[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the Form or Schedule and the date of its filing.
1) Amount Previously Paid:
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2) Form, Schedule or Registration Statement No.:
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3) Filing Party:
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4) Date Filed:
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Certain Participant Information (filed pursuant to Rule 14a-12)
Filed by CIDCO Incorporated (Commission File No.: 000-23296) pursuant to
Rule 14a-12 of the Securities Exchange Act of 1934.
CERTAIN STATEMENTS MADE DURING THIS PRESENTATION WILL CONCERN MATTERS THAT ARE
NOT HISTORICAL FACT AND ARE FORWARD-LOOKING STATEMENTS. THE FORWARD-LOOKING
STATEMENTS MADE DURING THIS PRESENTATION ARE MADE PURSUANT TO SAFE HARBOR
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. THIS
PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS REGARDING, AMONG OTHER MATTERS,
CIDCO'S FUTURE FINANCIAL PERFORMANCE AND THE COMPLETION OF THE PROPOSED
ACQUISITION OF CIDCO'S TELEPHONY BUSINESS (THE ASSET SALE) BY CIDCO
COMMUNICATIONS, LLC.
FORWARD LOOKING STATEMENTS ADDRESS MATTERS WHICH ARE SUBJECT TO A NUMBER OF
RISKS AND UNCERTAINTIES INCLUDING RISKS RELATING TO SATISFACTION OF CONDITIONS
TO THE ASSET SALE, THE ABILITY OF CIDCO TO DEVELOP AND BRING TO MARKET NEW
INTERNET APPLIANCE PRODUCTS, THE TIMING OF NEW PRODUCT RELEASES BY CIDCO'S
COMPETITORS, AND OTHER COMPETITIVE FACTORS. REFERENCE IS MADE TO CIDCO'S FILINGS
WITH THE SECURITIES AND EXCHANGE COMMISSION FOR FURTHER DISCUSSION OF RISKS AND
UNCERTAINTIES REGARDING CIDCO'S BUSINESS.
CIDCO WILL BE FILING A PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS CONCERNING
THE ASSET SALE WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE SEC).
INVESTORS ARE URGED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE AND
ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE ASSET SALE. INVESTORS SHOULD READ THE PROXY
STATEMENT BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS.
INVESTORS WILL BE ABLE TO OBTAIN THE DOCUMENTS FREE OF CHARGE AT THE SEC'S
WEBSITE, www.sec.gov, AND AT THE SEC PUBLIC REFERENCE ROOMS IN WASHINGTON D.C.,
NEW YORK, NEW YORK, AND CHICAGO, ILLINOIS. PLEASE CALL THE SEC AT 1-800-SEC-0330
FOR MORE INFORMATION ON PUBLIC REFERENCE ROOMS. IN ADDITION, DOCUMENTS FILED
WITH THE SEC BY CIDCO MAY BE OBTAINED FREE OF CHARGE BY CONTACTING RICHARD D.
KENT, CIDCO'S CHIEF FINANCIAL OFFICER, AT (408) 779-1162. CIDCO AND ITS
DIRECTORS AND CERTAIN OF ITS EXECUTIVE OFFICERS MAY BE DEEMED, UNDER SEC RULES,
TO BE SOLICITING PROXIES FROM CIDCO'S STOCKHOLDERS IN FAVOR OF THE PROPOSED
ASSET SALE. INFORMATION REGARDING THE IDENTITY OF THESE PERSONS, AND THEIR
INTERESTS IN THE SOLICITATION, IS SET FORTH IN A SCHEDULE 14A FILED WITH THE SEC
ON SEPTEMBER 18, 2000, AND AVAILABLE FREE OF CHARGE AT THE SEC WEBSITE AND
PUBLIC REFERENCE ROOMS, AND FROM THE CIDCO CONTACT NAMED ABOVE.
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CIDCO
MAKE IT YOUR INTERNET
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CIDCO
MAKE IT YOUR INTERNET
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Forward Looking Statement Disclaimer
Before we begin, please note that this presentation may contain forward-looking
statements which reflect the Company's current views with respect to future
events and financial performance. These forward-looking statements are subject
to risks and uncertainties which could cause actual results to differ materially
from historical or anticipated results. Forward-looking statements should be
considered in light of the factors discussed from time-to-time in the Company's
periodic public reports filed with the SEC, copies of which may be accessed
through the SEC's World Wide Web site at http://www.sec.gov.
[CIDCO LOGO]
<PAGE> 7
CIDCO Overview
- Founded 1988 -- Nasdaq CDCO
- $1999 Rev $160M - 200 employees
- Leader in network service appliances over 30 Million sold - 50% CID
penetration
- Sold Telco Division - Internet appliance focus
[TELMEX LOGO] [AMERITECH LOGO] [GTE LOGO] [CINCINNATI BELL LOGO]
[SOUTHWESTERN BELL LOGO] [USWEST LOGO] [BELL ATLANTIC LOGO]
[SPRINT LOGO] [NTT LOGO]
[CIDCO LOGO]
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CIDCO Network Appliance Products
[GRAPHIC]
[CIDCO LOGO]
<PAGE> 9
Cidco Promise
Cidco offers innovative Internet appliance products and services that let
consumers communicate and get information simply and affordably over the
Internet in a way that suits their lifestyle.
Cidco gives residential consumers the most personal way to stay connected using
the Internet.
[CIDCO LOGO]
<PAGE> 10
The Cidco Opportunity
- Large pent up demand for simplified, affordable access to e-mail
- Growing demand for simplified, affordable access to internet content and
information
- Appliances, not PCs, will be the preferred hardware technology for this access
- Solid financial model - compelling customer offer blending minimal
subsidization with a high margin monthly subscription
[CIDCO LOGO]
<PAGE> 11
TV Advertising Media
14 Networks - 1772 Spots
[CNN LOGO] [AMC LOGO] AMERICAN MOVIE CLASSICS [TRAVEL CHANNEL LOGO]
GREAT MOVIES AND STORIES BEHIND THEM [A&E LOGO]
[DISCOVERY CHANNEL LOGO] [ESPN LOGO] [HGTV LOGO] [FOOD NETWORK LOGO]
[TLC LOGO] [MSNBC LOGO] [THE WEATHER CHANNEL LOGO] [LIFE TIME LOGO]
[HEADLINE NEWS LOGO] [USA NETWORK LOGO] [CIDCO Commercial LOGO]
[CIDCO LOGO]
<PAGE> 12
Retail Circular AD Schedule
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ACCOUNT NAME 10/01/00 10/08/00 10/15/00 10/22/00 10/29/00 11/05/00 11/12/00 11/19/00 11/26/00
E-COMMERCE
Cidco Direct 16
Employee Purchase -
E-COMMERCE TOTALS 16 - - - - - - - -
RETAIL
America TV -
ABC Warehouse -
Bailio's -
Best Buy 278
BJ Wholesale -
Circuit City -
Columbia Photo -
CompUSA 65
Costco -
Datavision -
Electronic Boutique -
Fry's 18
Good Guys 22
HH Gregg 15
K's Merchandise -
Kmart 222
Micro Center -
Nebraska Furniture -
Office Depot 261
Office Max -
Radio Shack 372
RCS -
Sams -
Sears -
Staples -
Target 84
Vann's -
Walmart -
Wolf's Camera -
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C>
ACCOUNT NAME 12/03/00 12/10/00 12/17/00 12/24/00 12/31/00
E-COMMERCE
Cidco Direct
Employee Purchase
E-COMMERCE TOTALS - - - - -
RETAIL
America TV
ABC Warehouse
Bailio's
Best Buy
BJ Wholesale
Circuit City
Columbia Photo
CompUSA
Costco
Datavision
Electronic Boutique
Fry's
Good Guys
HH Gregg
K's Merchandise
Kmart
Micro Center
Nebraska Furniture
Office Depot
Office Max
Radio Shack
RCS
Sams
Sears
Staples
Target
Vann's
Walmart
Wolf's Camera
</TABLE>
$30 Carry Bag Promotion [CIDCO LOGO]
<PAGE> 13
Market Forecast
[GRAPH]
E-Mail & Web Terminals Projected to be Primary Hardware Device
[CIDCO LOGO]
<PAGE> 14
Consumer Internet Appliance Market
Over $5B per year industry
<TABLE>
<CAPTION>
1999 2000 2001 2002 2003 2004
<S> <C> <C> <C> <C> <C> <C>
hw $16,000,000 $120,000,000 $500,000,000 $900,000,000 $1,400,000,000 $2,000,000,000
service $14,400,000 $116,640,000 $524,304,000 $1,159,574,400 $2,113,035,840 $3,415,693,824
</TABLE>
[CIDCO LOGO]
<PAGE> 15
CIDCO Financial Model
<TABLE>
<CAPTION>
1999 2000 2001 2002 2003 2004
<S> <C> <C> <C> <C> <C> <C>
Subscribers 6,000 107,000 300,000 556,000 864,000 1,235,000
Profit (Loss) ($23,412) ($23,417) ($318) $22,220 $48,135
</TABLE>
Note: This is an example of the Cidco Financial Model and does not predict
future results.
[CIDCO LOGO]
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Future Directions
[CIDCO LOGO]
<PAGE> 17
Target Consumer Homes
<TABLE>
<S> <C>
Homes Not Online
Online Homes Primary Internet Users
NON-INTERNET HOMES INTERESTED IN INTERNET 22,000,000
PC HOMES NOT ONLINE 13,000,000
ONLINE HOMES SECONDARY INTERNET USERS 25,000,000
</TABLE>
CIDCO becomes the primary internet access devices
[CIDCO LOGO]
<PAGE> 18
MailStation Key Learnings
- Integrated solution is beneficial
- Blend (subsidize) appliance & service pricing
- Provides true plug `n play solution
- Single function entry products meet market needs
- Market is still developing for browsing appliances
- PC centric approaches overshoot the market
- Profitable business model can be achieved
[CIDCO LOGO]
<PAGE> 19
Key to Market Success
[GRAPHIC]
[CIDCO LOGO]
<PAGE> 20
Cidco is the E-Mail Appliance Leader
E-MAIL DEVICE SHIPMENTS - 1999
[BAR GRAPH]
150,000 UNITS SHIPPED YTD - 2000
[CIDCO LOGO]
<PAGE> 21
Installed Base Target Research
<TABLE>
<S> <C>
GENDER
Male 25%
Female 75%
AGE
65 & Older 41%
51-64 30%
31-50 21%
30 & Under 8%
INCOME
< $35,000 46%
$35,000-$49,000 22%
$50,000-$74,999 14%
> $75,000 18%
EMAIL ACCESS
No email access 43%
Email access 57%
INTERNET HOUSEHOLDS
Non-Internet household 69%
Internet household 31%
</TABLE>
** Griggs Anderson Q2 Installed Base Survey
[CIDCO LOGO]
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MailStation Users Love the Product
HOW SATISFIED ARE YOU WITH MAILSTATION?
[PIE CHART]
OVER 85% VERY/EXTREMELY SATISFIED
HOW LIKELY ARE YOU TO RECOMMEND MAILSTATION TO SOMEONE ELSE?
[PIE CHART]
OVER 90% VERY/EXTREMELY LIKELY TO
RECOMMEND MAILSTATION TO SOMEONE ELSE
Extremely Satisfied
Very Satisfied
Somewhat Satisfied
Satisfied
Somewhat Dissatisfied
Very Dissatisfied
Extremely Dissatisfied
IF YOU HAD TO DO IT AGAIN, HOW LIKELY WOULD YOU BE TO PURCHASE MAILSTATION?
[PIE CHART]
ALMOST 90% VERY/EXTREMELY
LIKELY TO PURCHASE MAILSTATION AGAIN
DO YOU INTEND TO RENEW OUR SERVICE CONTRACT FOR ANOTHER YEAR?
[PIE CHART]
90% of customers intend to renew
their service another year
* -Research conducted by Griggs Andersen 4/00
[CIDCO LOGO]
<PAGE> 23
Strong Customer Retention
<TABLE>
Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Activations 331 713 1591 2829 6557 7644 8765 10540 11,865 14678 20199 26233 32679 41372
Total Subscribers 294 635 1462 2586 6082 6837 7796 9248 10393 13150 18109 23559 29250 36786
</TABLE>
[CIDCO LOGO]
<PAGE> 24
Installed Base Target Research
Creating awareness + customer recommendation
drives growth
<TABLE>
<S> <C>
Advertising 54
Word of Mouth 26
Displays 6
Other 14
</TABLE>
[CIDCO LOGO]
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Competitive Landscape
Home Consumer Market
[GRAPHIC]
[CIDCO LOGO]
<PAGE> 26
Keys to Success
- Unique positioning
- Device/Service/Content
- Strong value proposition
- Affordable
- Convenient
- Portable
- Wireless
- Established success
- Proven infrastructure
- Strong channel - >10,000 stores
- Growing need for alternative internet access devices
[CIDCO LOGO]
<PAGE> 27
CIDCO
APPENDIX
[CIDCO LOGO]
<PAGE> 28
Q & A
[CIDCO LOGO]
<PAGE> 29
CIDCO
Balance Sheet (In Thousands)
<TABLE>
<CAPTION>
Working Capital Impact
---------------------------
June 30, Upon Six Month
2000 Closing After Closing *
-------- -------- ---------------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash, cash equivalents and Investments $ 41,986 $ 4,000 $ 18,983
Accounts receivable, net 20,007 -- (15,000)
Inventories 15,390 -- (11,000)
Other current assets 4,426 -- --
-------- -------- --------
Total current assets 81,809 4,000 (7,017)
-------- -------- --------
Property and equipment, net 5,346 (1,483) --
Other assets 2,925 -- --
-------- -------- --------
90,080 $ 2,517 (7,017)
======== ======== ========
LIABILITIES AND
STOCK HOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,093 $ $ (1,000)
Accrued liabilities 10,531 -- $ (2,500)
Inventory advance -- 3,517 $ (3,517)
-------- -------- --------
Total current liabilities 12,624 3,517 $ (7,017)
-------- -------- --------
Stockholders' equity 77,456 (1,000) --
-------- -------- --------
$ 90,080 $ 2,517 $ (7,017)
======== ======== ========
</TABLE>
* Results will change based on balances at the close of the transaction
[CIDCO LOGO]
<PAGE> 30
Cidco Appliance Products
<TABLE>
<CAPTION>
E-Mail Web Clipping Web Browsing
------ ------------ ------------
<S> <C> <C>
MAILSTATION 2000 CORDLESS FRISBEE CORDLESS
[GRAPHIC] [GRAPHIC]
MAILSTATION 2000 FRISBEE
[GRAPHIC] [GRAPHIC]
MAILSTATION
[GRAPHIC]
</TABLE>
[CIDCO LOGO]
<PAGE> 31
Mivo 100/Mivo 200 Features
- MailStation (Mivo 100)
- E-Mail only
- Mivo 200
- New industrial design
- Selected internet content
- Larger keyboard
- 56K modem
- Mivo 200 cordless
- Mivo 200 with cordless capabilities
[CIDCO LOGO]
<PAGE> 32
Mivo 300 Features
[GRAPHIC]
- Enhanced E-Mail
- Larger Messages (32K)
- Graphical Attachments (GIF, JPEG)
- Folders
- Light Content Clipping
- Content "Channels" Delivered to User
- Complete HTML pages
- Drill down functionality
- Enhanced Calendar and Address Book
- Enhanced User Interface
- Improved Hardware
- Greyscale, Higher-Resolution Display
- 2x Memory
[CIDCO LOGO]
<PAGE> 33
Mivo 300 Content Examples
Content Clipping
HTML-based content
Individualized content maintained at the server
[GRAPHIC]
[CIDCO LOGO]
<PAGE> 34
Personalized Information Delivery System
Internet
"Suppliers"
[GRAPHIC]
Service
Infrastructure
[GRAPHIC]
[CIDCO LOGO]
<PAGE> 35
Internet Appliance Roadmap
[GRAPHIC]
[CIDCO LOGO]
<PAGE> 36
Competitive Landscape
Consumer Market
<TABLE>
<CAPTION>
E-Mail Web Clipping Web Browsing
------ ------------ ------------
<S> <C> <C>
Mivo 200 Mivo 300 Web TV
[GRAPHIC] [GRAPHIC] [GRAPHIC]
MailStation i-opener
(Mivo 100) [GRAPHIC]
[GRAPHIC]
eMail Post Box ipaQ
[GRAPHIC] [GRAPHIC]
Mailbug Dot.Station
[GRAPHIC] [GRAPHIC]
</TABLE>
[CIDCO LOGO]
<PAGE> 37
Cumulative Activations
<TABLE>
<CAPTION>
3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 (fcst)
---- ---- ---- ---- ---- -----------
<S> <C> <C> <C> <C> <C> <C>
East 858 6000 8500 17500 37000 107000
</TABLE>
[CIDCO LOGO]
<PAGE> 38
Retail Stores On Line
<TABLE>
<CAPTION>
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- -------
<S> <C> <C> <C> <C>
GoodGuys 80 80 80 80
Staples 0 600 1000 1000
Comp USA 0 220 220 220
Office Depot 0 0 1000 1000
Best Buy 0 0 400 400
Radio Shack 0 0 0 5500
Kmart 0 0 0 2200
Target 0 0 0 1200
Office Max 0 0 0 1000
Independents 0 0 0 800
</TABLE>
[CIDCO LOGO]
<PAGE> 39
Advertising Campaign - $9M in Q4
[GRAPHIC]
[CIDCO LOGO]
