Redwood City, CA Ð The money is rolling in at NeXT, but it has nothing to do with product sales.
NeXT identified the sources for a $65 million credit line secured in June, saying that Canon extended $55 million and founder Steve Jobs contributed $10 million. NeXT will draw from both sources in proportions yet to be determined.
NeXT President Peter van Cuylenburg also confirmed that Canon was the source for a previously unannounced $30 million round of financing last December and that Canon will receive nonexclusive distribution rights for NeXT computers in Europe.
Van Cuylenburg said the new financing is the last NeXT will require before its initial public offering (IPO), planned for 1993. He added that NeXT plans to draw on only half the $65 million, to fund expansion. "This is a cash-flow issue, not a profitability issue," said van Cuylenburg.
Any monies drawn from either Canon or Jobs against the new credit line will be converted to stock at the time of the IPO, based on the offering price of NeXT stock.Van Cuylenburg also confirmed that total cash infusions to NeXT prior to the June line, including IBM's software license fee and other undisclosed amounts, have been in excess of $175 million.
With this $55 million offering, Canon has now provided at least $185 million to NeXT. The first $100 million bought Canon 16.7 percent of NeXT in 1989, while the $30 million last December also bought a few more points of ownership and unspecified rights to more stock later.
Canon's position is further strengthened by the acquisition of the nonexclusive distribution rights in Europe. The company already enjoys exclusive distribution rights for NeXT computers in Japan and nonexclusive distribution rights in other parts of Asia and the Pacific.
According to van Cuylenburg, NeXT and Canon will also form a worldwide marketing alliance based on the NeXT Publishing Environment (NPE) that will include promotion of Canon's publishing products, such as the Canon Color Laser Copier.
Year Source Amount (millions)1985 Steve Jobs $71987 Jobs, Ross Perot, $26.3 Stanford, Carnegie Mellon 1988 IBM (licencing fee, estimated) $10Ð$501989 Canon $1001991 Canon $301992 Canon, Steve Jobs (credit line) $65Note: Other funding is known to have occurred, including from Steve Jobs, but timing and amounts are unknown.