<PAGE>
OMB APPROVAL
--------------------------
OMB Number: 3235-0060
Expires: May 31, 2000
Estimated average burden
hours per response 5.00
--------------------------
UNITED STATES
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) April 3, 2000
---------------------
RAINMAKER SYSTEMS, INC.
- ----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-28009 33-0442860
- ----------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1800 Green Hills Road Scotts Valley, California 95066
- -----------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (831) 430-3800
------------------------
None
- ----------------------------------------------------------------------------
(Former name or former address, if changed since last report)
1
<PAGE>
ITEM 5 OTHER EVENTS
------------
On February 3, 2000, Rainmaker Systems, Inc. (the "Company") issued a press
release announcing its fourth quarter and annual results as of and for the year
ended December 31, 1999. The Statements of Operations data attached to the
press release omitted one line item labeled "Excess of redemption of preferred
stock over stated value". This line item, which does not impact Net income
(loss) should have been subtracted from Net income (loss) to calculate Income
(loss) available to common stockholders. The amount shown on this line should
read $ (1,941,000) for the year ended December 31, 1999 and zero for all other
periods presented. Including this line item, the loss available to common
stockholders for the year ended December 31, 1999 is $ (10,515,000) versus $
(8,574,000) as indicated on the Statements of Operations data attached to the
February 3, 2000 press release. Basic and diluted net loss per common share
should read $(0.49) versus $(0.40). The corrected Statement of Operations data
with the noted line item is shown below.
Pro forma basic and diluted net income (loss) per share amounts are not
affected by this exclusion.
All of the outstanding shares of preferred stock were converted to common
stock immediately prior to the closing of the Company's initial public offering
in November 1999. This conversion is included in the calculation of the number
of shares outstanding for basic and diluted pro forma net income (loss) per
share as if it occurred at the beginning of the period. The conversion of the
preferred shares to common shares will be reflected in the calculation of basic
and diluted net income (loss) in future periods.
<TABLE>
<CAPTION>
Rainmaker Systems, Inc
Statements of Operations
(in thousands, except per share amounts)
Three months ended Years ended
December 31, December 31,
---------------------- ---------------------
1999 1998 1999 1998
------- ------- -------- ------
(unaudited)
<S> <C> <C> <C> <C>
Revenue:
CRM services $18,630 $13,810 $ 60,665 $44,212
Catalog/distributor - - - 6,165
------- ------- -------- -------
Total revenue 18,630 13,810 60,665 50,377
Cost of revenue:
CRM services 12,602 9,670 41,539 30,196
Catalog/distributor - - - 5,135
------- ------- -------- -------
Total cost of revenue 12,602 9,670 41,539 35,331
Gross profit:
CRM services 6,028 4,140 19,126 14,016
Catalog/distributor - - - 1,030
------- ------- -------- -------
Total gross profit 6,028 4,140 19,126 15,046
Selling, general and administrative expenses 10,288 3,818 28,939 13,457
------- ------- -------- -------
Operating income (loss) (4,260) 322 (9,813) 1,589
Interest income, net 404 68 774 138
Gain from sale of catalog/distributor - - 80 2,525
------- ------- -------- -------
Income (loss) before income taxes (3,856) 390 (8,959) 4,252
Income tax expense (benefit) (1,129) 157 (1,650) 1,702
------- ------- -------- -------
Net income (loss) (2,727) 233 (7,309) 2,550
Preferred A dividends - (18) - (36)
Preferred C and D cumulative dividends (200) - (1,265) -
Excess of redemption of preferred stock over stated - - (1,941) -
value
------- ------- -------- -------
Income (loss) available to common stockholders $(2,927) $ 215 $(10,515) $ 2,514
------- ------- -------- -------
Net income (loss) per common share:
Basic $ (0.10) $ 0.01 $ (0.49) $ 0.12
------- ------- -------- -------
Diluted $ (0.10) $ 0.01 $ (0.49) $ 0.09
------- ------- -------- -------
Pro forma-basic $ (0.08) $ 0.01 $ (0.20) $ 0.10
======= ======= ======== =======
Pro forma-diluted $ (0.08) $ 0.01 $ (0.20) $ 0.09
======= ======= ======== =======
Number of shares used in per share computations:
Basic 28,151 21,269 21,300 21,004
======= ======= ======== =======
Diluted 28,151 30,479 21,300 30,356
======= ======= ======== =======
Pro forma-basic 35,242 25,888 35,798 25,623
======= ======= ======== =======
Pro forma-diluted 35,242 30,479 35,798 30,356
======= ======= ======== =======
</TABLE>
2
<PAGE>
SIGNATURES*
Pursuant to the requirements of the Securities Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
RAINMAKER SYSTEMS, INC.
-------------------------
(Registrant)
April 3, 2000 /s/ Michael Silton
- ----------------------------- -------------------------
Date (Signature)*
* Print name and title of the By: Michael Silton
signing officer under his signature. Title: Chairman of the Board,
President and Chief
Executive Officer
3
