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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 6, 1998
KENTEK INFORMATION SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
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<S> <C> <C>
DELAWARE 3577 22-2406249
(State or other jurisdiction of (Primary Standard Industrial (I.R.S. Employer
incorporation or organization) Classification Code Number) Identification Number)
2945 Wilderness Place, Boulder, CO 80301
(Address of principal executive offices) (Zip code)
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Registrant's telephone number, including area code: (303) 440-5500
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Item 5. Other Events.
(c) Exhibits.
99.1. On November 6, 1998 the Company announced restructuring,
copy of Press release of November 6, 1998 attached.
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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.
Date: November 11, 1998 KENTEK INFORMATION SYSTEMS INC.
By:/s/ Vicky S. Hammond
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Title: Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
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16.2. Press release of November 6, 1998.
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EXHIBIT 16.2
FOR IMMEDIATE RELEASE: NOVEMBER 6, 1998
CONTACT: Vicky Hammond, Chief Financial Officer
Kentek Information Systems, Inc.
(303) 440-5500
KENTEK ANNOUNCES REDUCTION IN STAFF AND RESTRUCTURING OF KW60 PRINTER
DEVELOPMENT
BOULDER, CO , November 6, 1998 --- Kentek Information Systems, Inc. (Nasdaq:
KNTK) today announced that it is reducing employee headcount by approximately
25% and restructuring the development effort on the KW60, its 60 page-per-minute
printer.
"An overall trend of declining sales as well as delays in the development of the
KW60 printer and the uncertainty of the customer base for the new machine has
led us to make this tough decision. We recognize that the expense structure of
the Company has continued to increase, while revenues have declined," said Phil
Shires, president and chief executive officer.
"Reductions will occur in all functional areas of the Company but will focus on
resizing the engineering staff in Boulder, CO. We will record a significant
restructuring charge in the second fiscal quarter ending December 31, 1998."
"The Company's plan going forward is to reduce costs to maintain profitability,
while continuing to enhance the functionality of our current 30 and 40
page-per-minute printer lines. In addition, we are transferring development of
the KW60 to engineering staff at our facility in Nagano, Japan, while we search
for partners to bring the printer to market. Our facility in Japan has had
responsibility for developing our previous printer engines and has been involved
in the KW60 project since its inception. Finally, we will be actively pursuing
acquisitions in the coming months," concluded Shires.
This news release contains forward-looking statements that involve risks and
uncertainties including the timing and fluctuations of sales, the Company's
ability to retain key customers, the timely development of new products,
fluctuations in the dollar/yen exchange rate and the introduction of new
products by competitors, as well as other risks detailed from time to time in
the Company's SEC filings, including the Company's Form 10-K for the year ended
June 30, 1998.
News releases and information on Kentek can be accessed at http://www.kentek.com
on the Internet.
