<PAGE>
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
Date of Report (Date of earliest event reported): August 3, 1999
Brio Technology, Inc.
(Exact name of registrant as specified in its charter)
000-23997
(Commission File Number)
Delaware 77-0210797
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation)
3430 West Bayshore Road
Palo Alto, CA 94303
(Address of principal executive offices, with zip code)
(650) 856-8000
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
August 3, 1999, Brio Technology, Inc. completed its acquisition of SQRIBE
Technologies Corp. A copy of the press release is included herein as Exhibit
99.1 and is incorporated by reference into this Item 5.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Exhibits:
99.1 Brio Technology, Inc. News Release dated August 3, 1999
-2-
<PAGE>
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.
Brio Technology, Inc.
Date: August 4, 1999 By: /s/ Yorgen H. Edholm
________________________________________
Yorgen H. Edholm,
President, Chief Executive Officer and
Chairman of the Board of Directors
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[BRIO LOGO]
Analysts:
Karen Willem, CFO
Brio Technology
650.856.8000
[email protected]
Media Relations:
Bill Cox
Cox Consulting
650.593.5860
[email protected]
Investor Information:
Heidi Flannery
Fi.Comm, Ltd.
503.844.8888
[email protected]
BRIO TECHNOLOGY COMPLETES ACQUISITION
OF SQRIBE TECHNOLOGIES
The "New Brio" combines strengths of both companies
to create the leading platform for business intelligence
PALO ALTO, Calif. -- August 3, 1999 -- Brio Technology (Nasdaq: BRYO) today
announced the completion of its acquisition of privately held SQRIBE
Technologies Corp. of Redwood City, Calif. The company will continue to operate
under the name Brio Technology, Inc. and to trade under the symbol "BRYO" on the
Nasdaq National Market.
The transaction will be accounted for as a pooling of interests. Brio Technology
had revenues of $46.5 million for its fiscal year ending March 31, 1999. SQRIBE
Technologies had revenues of $39.2 million for its fiscal year ending December
31, 1999. The combined company had revenues of $85.7 million for the fiscal
year ending March 31, 1999. With the close of the transaction, former Brio
Technology stockholders hold approximately 55% of the combined company, with
former SQRIBE stockholders holding approximately 45%. The value and number of
shares SQRIBE stockholders will receive is based upon the price of Brio common
stock at the close of the stock market today, as well as other factors discussed
in the Company's proxy statement/prospectus filed with the SEC.
With the acquisition of SQRIBE, Brio Technology will provide the industry's most
comprehensive, scaleable, business intelligence platform for deploying decision
processing applications across the e-enterprise. This extended product line
enables Brio to better meet the business intelligence requirements of
organizations that are utilizing e-business and the Web as critical components
of their operations. With the acquisition, Brio has also expanded its worldwide
market presence with an increased direct and indirect sales force in North
America, Europe and Australasia as well as expanded international coverage.
"From all indications, Brio is effecting a positive integration of the two
firms, creating a leading enterprise business intelligence player," said Wayne
Eckerson, senior consultant of Patricia Seybold Group.
<PAGE>
Brio Complete SQRIBE Acquisition/Page 2
The "New" Brio
The "new" Brio has a strong track record and proven success in the business
intelligence market. The company serves more than half of the Fortune 500 with
its product family, which provides enterprise and analytical reporting, ad hoc
query, OLAP, tools for analytic applications development and deployment, and
enterprise information access and delivery.
In addition, the company is a recognized innovator in the business intelligence,
enterprise reporting and enterprise information portal markets, having
introduced a number of technology firsts including:
. the first graphical query tool in 1990
. the first desktop on-line analytical processing (OLAP) product in 1991
. the first cross-platform enterprise business intelligence solution in 1992
. the first integrated query and OLAP product in 1994
. the first business intelligence broadcast server in 1996
. the first interactive Web-enabled OLAP tool in 1996
. the first enterprise information portal in 1997.
About Brio Technology
Brio Technology, Inc. [Nasdaq: BRYO] is the only business intelligence software
provider to offer a complete platform that addresses the decision processing
needs of today's Web-enabled e-enterprise. The Brio ONE platform which includes
Brio.Enterprise, Brio.Report, and Brio.Portal enables organizations to build
and deliver business intelligence, enterprise reporting, and analytic
applications to users in intranet and extranet environments, all with unmatched
ease of experience. Brio ONE also enables customers to derive higher business
value from all of their enterprise information sources, including enterprise
resource planning (ERP), sales force automation (SFA) and customer relationship
management (CRM) applications as well as data marts, data warehouses and others.
Brio products are available through direct sales and professional services
organizations located in the United States, Canada, the United Kingdom, France,
Germany and Australia, and more than 40 countries worldwide through VARs,
resellers and distributors. Brio has commercial relationships with companies
such as Hewlett Packard, IBM, Microsoft, Oracle, PeopleSoft, SAP and Sun
Microsystems. Brio Technology is based in Palo Alto, California, and can be
reached at 1.800.879.BRIO or on the Worldwide Web at www.brio.com.
The matters contained in this news release that are not purely historical are
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of
1934, as amended, including, without limitation, any statements included herein
regarding Brio's future product development and commercialization, product sales
and other revenues, market opportunities, beliefs, expectations, goals,
financial performance and future strategies, all of which are dependent on
certain risks and uncertainties that may cause actual results to differ
materially from those expressed in these or any other forward-looking statements
made by or on behalf of Brio. These risks and uncertainties include such
factors, among others, as the potential for fluctuations in Brio's quarterly
operating results, Brio's dependence upon its direct sales force, Brio's ability
to attract and retain qualified personnel, Brio's lengthy product sales cycle
and the other risk factors listed in the Company's Prospectus dated April 30,
1998, its Annual Report of Form 10-K and in other filings with the Securities
and Exchange Commission.
Financial to follow
Brio Technology and SQRIBE Technologies are trademarks of Brio Technology. Other
products or company names may be trademarks of their respective owners.
<PAGE>
Brio Complete SQRIBE Acquisition/Page 3
BRIO TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
June 30, September 30, December 31, March 31, June 30,
1998 1998 1998 1999 1999
--------- ------------- ------------- ---------- ---------
<S> <C> <C> <C> <C> <C>
Revenues:
License fees....................................... $11,565 $13,440 $15,090 $18,187 $18,293
Services........................................... 5,505 6,630 7,420 7,849 9,286
------- ------- ------- ------- -------
Total revenues.................................. 17,070 20,070 22,510 26,036 27,579
------- ------- ------- ------- -------
Cost of revenues:
License fees....................................... 428 599 719 836 764
Services........................................... 1,756 2,462 2,842 3,408 3,973
------- ------- ------- ------- -------
Total cost of revenues.......................... 2,184 3,061 3,561 4,244 4,737
------- ------- ------- ------- -------
Gross Profit......................................... 14,886 17,009 18,949 21,792 22,842
------- ------- ------- ------- -------
Operating Expenses:
Research and development........................... 2,871 3,058 3,659 4,144 4,659
Sales and marketing................................ 10,412 11,551 12,572 13,935 14,763
General and administrative......................... 2,371 2,292 2,663 3,222 3,155
Restructuring charges.............................. -- -- -- -- 1,159
In-process research and development................ -- -- 1,653 -- --
------- ------- ------- ------- -------
Total operating expenses........................ 15,654 16,901 20,547 21,301 23,736
------- ------- ------- ------- -------
Income (loss) from operations........................ (768) 108 (1,598) 491 (894)
Interest and other income (expense), net............. 199 441 459 1,578 (228)
------- ------- ------- ------- -------
Net income (loss) before income taxes................ (569) 549 (1,139) 2,069 (1,122)
Income taxes......................................... 2 162 83 500 399
------- ------- ------- ------- -------
Net income (loss).................................... (571) 387 (1,222) 1,569 (1,521)
Increase in redemption value of redeemable common (286) -- (270) (360) --
stock............................................... ------- ------- ------- ------- -------
Net income (loss) applicable to common stock......... $ (857) $ 387 $(1,492) $ 1,209 $(1,521)
======= ======= ======= ======= =======
Basic net income (loss) per share.................... $ (0.05) $ 0.02 $ (0.07) $ 0.06 $ (0.07)
======= ======= ======= ======= =======
Shares used in computing basic net income (loss) per
share (assuming an exchange ratio of .883).......... 17,588 20,627 20,786 20,980 21,249
======= ======= ======= ======= =======
Diluted net income (loss) per share.................. $ (0.05) $ 0.01 $ (0.07) $ 0.04 $ (0.07)
======= ======= ======= ======= =======
Shares used in computing diluted net income (loss)
per share (assuming an exchange ratio of .883)...... 17,588 26,741 20,786 28,096 21,249
======= ======= ======= ======= =======
Supplemental net income data:
Net income (loss) excluding unusual charges.......... $ (571) $ 387 $ 431 $ 376 $ 50
======= ======= ======= ======= =======
Basic net income (loss) excluding unusual charges.... $ (0.03) $ 0.02 $ 0.02 $ 0.02 $ 0.00
======= ======= ======= ======= =======
Shares used in computing basic net income (loss)
excluding unusual charges (assuming an exchange
ratio of .883)...................................... 17,588 20,627 20,786 20,980 21,249
======= ======= ======= ======= =======
Diluted net income (loss) excluding unusual charges.. $ (0.03) $ 0.01 $ 0.02 $ 0.01 $ 0.00
======= ======= ======= ======= =======
Shares used in computing diluted net income (loss)
excluding unusual charges (assuming an exchange
ratio of .883)...................................... 17,588 26,741 27,258 28,096 28,436
======= ======= ======= ======= =======
</TABLE>
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Brio Complete SQRIBE Acquisition/Page 4
BRIO TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
June 30, March 31,
1999 1999
------------- ------------
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents.............................................. $ 19,058 $ 21,026
Short-term investments................................................. 16,327 14,285
Accounts receivable, net of allowance of $1,625 and $1,394............. 21,449 20,674
Inventories............................................................ 339 376
Deferred income taxes.................................................. 1,990 1,990
Prepaid expenses and other current assets.............................. 3,614 1,563
-------- --------
Total current assets............................................. 62,777 59,914
Property and Equipment, net.............................................. 6,810 6,540
Other Assets............................................................. 1,792 1,806
-------- --------
$ 71,379 $ 68,260
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable...................................................... $ 4,461 $ 4,251
Accrued liabilities--
Payroll and related benefits....................................... 5,501 5,902
Other.............................................................. 7,236 5,716
Line of credit..................................................... 2,087 2,000
Deferred revenue, current............................................. 20,294 18,666
-------- --------
Total current liabilities....................................... 39,579 36,535
Noncurrent deferred revenue............................................. 2,211 2,194
Other noncurrent liabilities............................................ 35 133
-------- --------
Total liabilities............................................... 41,825 38,862
-------- --------
Stockholders' Equity:
Common stock.......................................................... 26 26
Additional paid-in capital............................................ 70,653 69,290
Notes receivable from stockholders.................................... (1,820) (1,820)
Deferred compensation................................................. (402) (456)
Accumulated components of comprehensive loss.......................... 178 (132)
Accumulated deficit................................................... (39,081) (37,510)
-------- --------
Total stockholders' equity...................................... 29,554 29,398
-------- --------
$ 71,379 $ 68,260
======== ========
</TABLE>
