<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): September 15, 1999
INTELLIQUEST INFORMATION GROUP, INC.
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(Exact name of registrant as specified in its charter)
Delaware 000-27680 74-2775377
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(State of (Commission File Number) (IRS Employer
Incorporation) Identification No.)
1250 Capital of Texas Highway S., Building One, Suite 600, Austin, Texas 78746
(Address of principal executive offices) (Zip Code)
(512) 329-0808
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(Registrant's telephone number, including area code)
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(former name or former address, if changed since last report)
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Item 2. ACQUISITION OR DISPOSITION OF ASSETS.
On September 15, 1999, pursuant to an Asset Purchase
Agreement dated as of July 22, 1999 (the "Agreement") between IntelliQuest
Information Group, Inc., a Delaware corporation ("IntelliQuest"), and Naviant
Technology Solutions, Inc., a Delaware corporation ("Naviant"), IntelliQuest
sold its IQ2.net division to Naviant for a total purchase price of $46.5
million in cash (the "Disposition").
The IQ2.net division provides electronic consumer
registration services and licenses data from various proprietary databases.
Prior to the Disposition, Charles Stryker, who was at the
time President of IQ2.net Operations, acquired shares of Naviant Series C
Preferred Stock. Mr. Stryker is now the President and Chief Executive Officer
of Naviant.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
(b) PRO FORMA FINANCIAL INFORMATION.
The pro forma financial information required by this item
7(b) is filed herewith as Exhibit 99.1 and is incorporated herein by
reference to the Unaudited Pro Forma Combined Financial Information included
in said Exhibit.
(c) EXHIBITS.
The following exhibits are filed with this report:
99.1 Unaudited Pro Forma Combined Financial Information.
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SIGNATURE
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.
Dated: October 15, 1999
INTELLIQUEST INFORMATION GROUP, INC.
By: /s/ Brian Sharples
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Name: Brian Sharples
Title: Chief Executive Officer
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Exhibit 99.1 - UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION
The following unaudited pro forma condensed financial statements give effect
to the disposition of IQ2.net. The pro forma combined financial statements
are based on historical audited and unaudited interim financial statements of
IntelliQuest Information Group, Inc. and the estimates and assumptions set
forth below.
The attached pro forma statements cover the most current interim statements,
as of June 30, 1999, and a pro forma income statement and balance sheet are
presented as of that date. In addition, the most current audit financial
statements dated December 31, 1998, have been utilized as the basis for the
full year pro forma income statement. Pro forma adjustments are based upon
preliminary estimates, available information and certain assumptions that
management deems appropriate. The unaudited pro forma combined financial
information presented herein is not necessarily indicative of the results of
operations or financial position that IntelliQuest would have obtained had
such an event occurred at the beginning of the period, as assumed, or of the
future results of IntelliQuest. The pro forma financial statements should be
read with the other financial statements and notes thereto included in
IntelliQuest's Annual Report on Form 10-K for the year ended, December 31,
1998 and Quarterly Reports on Form 10-Q for the six months ended June 30,
1999.
On July 22, 1999, IntelliQuest and Naviant Technology Solutions, Inc. entered
into an Asset Purchase Agreement pursuant to which IntelliQuest sold its
IQ2.net division to Naviant for a total purchase price of $46.5 million in
cash on September 15, 1999.
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INTELLIQUEST INFORMATION GROUP, INC.
CONDENSED PRO FORMA BALANCE SHEET
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
INTELLIQUEST
INFORMATION PRO FORMA PRO FORMA
ASSETS GROUP IQ2.NET ADJUSTMENTS CONSOLIDATED
----- ------- ----------- ------------
<S> <C> <C> <C> <C>
Current assets:
Cash $ 2,105 $ 15 $ 46,485 (A) (B) $ 48,605
Short term investments 27,643 - - 27,643
Accounts receivable, net 3,826 4,028 (4,028) (B) 3,826
Due from Affiliates/(Due to Parent) 12,019 (12,019) - -
Unbilled revenues 4,096 1,261 (1,261) (B) 4,096
Projects in process 2,645 73 (73) (B) 2,645
Prepaid expenses and other assets 3,100 586 (586) (B) 3,100
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Total current assets 55,434 (6,056) 40,537 89,915
Property and equipment, net 2,270 843 (843) (B) 2,270
License agreement, net - 7,218 (7,218) (B) -
Other assets 282 1,206 (1,206) (B) 282
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Total assets $ 57,986 $ 3,211 $ 31,270 $ 92,467
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,211 $ 1,561 $ (1,561) (B) $ 1,211
Accrued liabilities 1,963 596 10,437 (B) (C) (E) 12,996
Deferred revenues 3,122 192 (192) (B) 3,122
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Total current liabilities 6,296 2,349 8,684 17,329
Deferred rent and other 238 3 (3) (B) 238
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Total liabilities 6,534 2,352 8,681 17,567
Series A junior participating preferred stock - - -
Stockholders' equity:
Common stock, $0.0001 par value, 30,000,000 shares
authorized, 8,603,000 shares issued and
outstanding, 720,000 shares in treasury 1 - 1
Capital in excess of par value 54,133 - 54,133
Other (1) - (1)
Accumulated earnings (deficit) (2,681) 859 22,589 (C) (D) (E) 20,767
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Total stockholders' equity 51,452 859 22,589 74,900
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Total liabilities and stockholders' equity $ 57,986 $ 3,211 $ 31,270 $ 92,467
=====================================================================
</TABLE>
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INTELLIQUEST INFORMATION GROUP, INC.
CONDENSED PRO FORMA STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
INTELLIQUEST PRO FORMA
INFORMATION PRO FORMA EXCLUDING
GROUP IQ2.NET ADJUSTMENTS IQ2.NET
----- ------- ----------- -------
<S> <C> <C> <C> <C>
Revenues:
Continuous services $ 39,440 $ 17,032 $ 22,408
Other services 6,259 2,304 3,955
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Total revenue 45,699 19,336 26,363
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Operating expenses:
Cost of revenues 24,604 9,579 15,025
Sales, general and administrative 20,292 8,940 11,352
Product development 4,483 985 3,498
Depreciation and amortization 1,115 408 707
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Total operating expenses 50,527 19,912 30,582
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Operating loss (4,828) (576) (4,219)
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Gain on sale of Discontinued Operations 30,519 (F) 30,519
Other income (expense):
Interest income and other 1,404 - 1,404
Interest expense (1) - (1)
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Income (loss) before income taxes (3,425) (576) 30,519 27,703
Provision for (benefit from) income taxes (1,846) 87 9,903 (G) 7,970
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Net Income (loss) $ (1,579) $ (663) $ 20,616 $ 19,733
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Basic net income (loss) per share $ (0.19) N/A N/A $ 2.37
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Diluted net income (loss) per share $ (0.19) N/A N/A $ 2.37
==========================================================================
Basic weighted average number of common and
common equivalent shares outstanding 8,311,000 N/A N/A 8,311,000
==========================================================================
Diluted weighted average number of common
and common equivalent shares outstanding 8,311,000 N/A N/A 8,311,000
==========================================================================
</TABLE>
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INTELLIQUEST INFORMATION GROUP, INC.
CONDENSED PRO FORMA STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
INTELLIQUEST PRO FORMA
INFORMATION PRO FORMA EXCLUDING
GROUP IQ2.NET ADJUSTMENTS IQ2.NET
----- ------- ----------- -------
<S> <C> <C> <C> <C>
Revenues:
Continuous services $ 16,184 $ 8,503 $ 7,681
Other services 4,098 792 3,306
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Total revenue 20,282 9,295 10,987
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Operating expenses:
Cost of revenues 10,787 4,817 5,970
Sales, general and administrative 10,921 5,130 5,791
Product development 874 184 690
Depreciation and amortization 758 220 538
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Total operating expenses 23,340 10,351 12,989
Operating loss (3,058) (1,056) (2,002)
Gain on sale of Discontinued Operations 30,519 (F) 30,519
Other income (expense):
Interest income and other 516 - 516
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Income (loss) before income taxes (2,542) (1,056) 30,519 29,033
Provision for (benefit from) income taxes (1,279) (466) 9,903 (G) 9,090
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Net Income (loss) $ (1,263) $ (590) $ 20,616 $ 19,943
============================================================================
Basic net income (loss) per share $ (0.16) N/A N/A $ 2.53
============================================================================
Diluted net income (loss) per share $ (0.16) N/A N/A $ 2.53
============================================================================
Basic weighted average number of common and
common equivalent shares outstanding 7,870,000 N/A N/A 7,870,000
============================================================================
Diluted weighted average number of common
and common equivalent shares outstanding 7,870,000 N/A N/A 7,870,000
============================================================================
</TABLE>
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PRO FORMA CONDENSED BALANCE SHEET ADJUSTMENTS
(A) Cash received in the amount of $46,500,000 in connection with the sale of
the IQ2.net division. Per the agreement $2,000,000 was being held in escrow
subject to adjustment for specified increases or decreases in the net asset
value of the purchased business as reflected on a final balance sheet to be
delivered after the closing. There were no adjustments to the closing
balance sheet and the funds have been released from escrow.
(B) Reflects the reduction of assets and assumed liabilities, "Net Assets",
purchased by Naviant.
(C) Includes fees of $1,130,000 paid to U.S. Bancorp Piper Jaffray for
financial advisor services rendered in connection with the sale of the
IQ2.net division to Naviant.
(D) Reflects a gain of $ 31,622,000 associated with the sale of the IQ2.net
division before federal or state income tax effects.
(E) Reflects the estimated federal and state income taxes attributed to the
sale of the IQ2.net division in the amount of $ 9,903,000. These amounts
are based upon the use of Net Operating Losses (NOL's) and are subject to
review by IntelliQuest's tax accountants.
PRO FORMA CONDENSED STATEMENT OF OPERATIONS ADJUSTMENTS
(F) Reflects the gain on the IQ2.net division based on the value of the assets
and assumed liabilities, as of June 30, 1999. This amount is subject to
change based on the value of the assets and assumed liabilities as of the
closing date of the sale.
(G) Reflects the tax liability as determined by the gain based on the value of
the assets and liabilities, as of June 30, 1999. These amounts are based
upon the use of Net Operating Losses (NOL's) and are subject to review by
IntelliQuest's tax accountants.
