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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
July 25, 1997
Date of Report (Date of earliest event reported)
CKS GROUP, INC.
(Exact name of registrant as specified in its charter)
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<S> <C> <C>
Delaware 0-27090 77-0385435
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(State or other jurisdiction of (Commission File Number) (I.R.S. Employer Identification No.)
incorporation)
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10441 Bandley Drive
Cupertino, California 95014
(Address of principal executive offices)
(408) 366-5100
(Registrant's telephone number, including area code)
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ITEM 5. OTHER ITEMS.
CKS Group, Inc. (the "Company") has restated its consolidated
statements of income for the four fiscal quarters of the fiscal year ended
November 30, 1996, and for the fiscal quarters ended March 2, 1997 and June 1,
1997 to reflect the merger of SiteSpecific, Inc. with and into a wholly owned
subsidiary of the Company on June 17, 1997 (the "Merger"). The Company restated
its consolidated financials statements for such periods to reflect that the
Merger was accounted for as a pooling of interests.
The Company's restated quarterly consolidated statements of income for
four fiscal quarters of the fiscal year ended November 30, 1996, and for the
fiscal quarters ended March 2, 1997 and June 1, 1997 are as follows:
CKS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
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THREE MONTHS ENDED THREE MONTHS ENDED
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FEB. 29, MAY 31, AUG. 31, NOV. 30, MAR. 2, JUNE 1,
1996 1996 1996 1996 1997 1997
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<S> <C> <C> <C> <C> <C> <C>
Revenues ................................ $14,086 $23,244 $24,682 $26,236 $24,319 $35,911
Operating expenses:
Direct salaries and related expenses . 4,400 5,349 6,009 7,204 7,110 8,345
Other direct operating expenses ...... 5,395 10,525 10,922 9,513 9,157 14,886
General and administrative expenses .. 3,048 4,147 4,605 5,770 5,619 8,039
Merger and integration costs ......... -- -- -- -- 1,593 --
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Total operating expenses .......... 12,843 20,021 21,536 22,487 23,479 31,270
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Operating income ........................ 1,243 3,223 3,146 3,749 840 4,641
Other income, net ....................... 338 581 445 749 523 267
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Income before income taxes .............. 1,581 3,804 3,591 4,498 1,363 4,908
Income taxes ............................ 349 885 819 972 174 2,026
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Net income .............................. $ 1,232 $ 2,919 $ 2,772 $ 3,526 $ 1,189 $ 2,882
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PRO FORMA NET INCOME AND PER SHARE DATA (1)
Income before income taxes, as reported . $ 1,581 $ 3,804 $ 3,591 $ 4,498 $ 1,363 $ 4,908
Pro forma income taxes .................. 595 1,451 1,366 1,696 492 2,026
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Pro forma net income .................... $ 986 $ 2,353 $ 2,225 $ 2,802 $ 871 $ 2,882
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Pro forma net income per share .......... $ 0.07 $ 0.16 $ 0.15 $ 0.19 $ 0.06 $ 0.19
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Shares used in per share computation .... 14,040 14,459 14,569 14,715 15,123 15,164
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(1) The Company's results of operations reflect the January 31, 1997 acquisition
of 100% of the capital units, shares and capital accounts of McKinney & Silver,
a North Carolina general partnership (M&S). M&S was a limited partnership and,
as a result, M&S's historical results of operations, which have been included
with the Company's under the pooling of interest method, do not include a
provisions for income tax. Pro forma net income and net income per share include
a tax provision as if M&S had been a taxable C corporation for all periods.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CKS GROUP, INC.
Dated: July 25, 1997 By: /s/ CARLTON H. BAAB
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Carlton H. Baab
Executive Vice President
and Chief Financial Officer
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