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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
Date of Report (Date of earliest event reported): June 20, 1994
APPLIED MAGNETICS CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware 1-6635 95-1950506
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(State of other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
Registrant's telephone number, including area code: (805) 683-5353
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Item 5. Other Events
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On June 20, 1994, the Registrant issued a press release, dated June 17,
1994, announcing the engagement by the Registrant of Lehman Brothers Inc. as
financial advisors to assist the Registrant in exploring a number of strategic
options for maximizing shareholder value, the fact that the Registrant is
proceeding with the establishment of additional credit facilities and that
has taken or will take a number of steps to reduce costs and conserve cash,
including work force reductions. The Registrant also announced the resignation
of Dr. Richard D. Balanson as President and Chief Operating Officer and the
election of William R. Anderson, currently the Chief Executive Officer, to the
position of President.
Item 7. Financial Statements and Exhibits
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(c) Exhibits
20. Press Release, dated June 17, 1994, announcing the matters described
in Item 5.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant had duly cause this report to be signed on its behalf by the
undersigned hereunto duly authorized.
APPLIED MAGNETICS CORPORATION
Date: July 11, 1994 By:________________________________________
Kathryn E. Gehrke
Vice President, Chief Financial
Officer and Treasurer
(Principal Financial Officer)
Date: July 11, 1994 By:____________________________________________
Scott O. Davis
Corporate Controller
(Principal Accounting Officer)
2
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EXHIBIT INDEX
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Page Number In
Sequential Numbering
Exhibit System
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20 Press Release, dated June 17, 4-5
1994, announcing Registrant's
engagement of Lehman Brothers
Inc. as financial advisors to
assist the Registrant in exploring
a number of strategic options for
maximizing shareholder value and
that the Registrant is proceeding
with the establishment of additional
credit facilities and has taken, or
will take, a number of steps to
reduce costs and conserve cash,
including work force reductions.
The Registrant also announced the
resignation of Dr. Richard D.
Balanson as President and Chief
Operating Officer and the election
of William R. Anderson, currently
the Chief Executive Officer, to
the position of President.
3
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EXHIBIT 20
[LETTERHEAD OF APPLIED MAGNETICS]
FOR IMMEDIATE RELEASE Contact: William R. Anderson
Chief Executive Officer
805\683-5353
APPLIED MAGNETICS CORPORATION
ANNOUNCES SEVERAL MAJOR DEVELOPMENTS
GOLETA, CALIFORNIA, June 17, 1994 - APPLIED MAGNETICS CORPORATION
(APM:NYSE) today announced that in response to the Company's recent losses and
deteriorating financial condition, its Board of Directors and executive
management have taken a number of steps which are intended to strengthen the
Company's financial condition and improve its performance.
The Company has retained Lehman Brothers Inc. as financial advisors to
assist the Company in exploring a number of strategic options for maximizing
shareholder value. In addition, the Company is proceeding with the
establishment of additional credit facilities.
Further, management has taken and will take a number of actions to reduce
costs and conserve cash. The Company believes that its existing production
capacity is adequate to support near term commitments; accordingly, near term
capital expenditures will be severely restricted. The Company also expects work
force reductions at a number of its facilities, including Goleta, California.
Bill Anderson, Chief Executive Officer, stated that "These actions are
being taken in order to improve the Company's ability to meet its commitments
to customers and make the necessary investments in critical technologies. These
steps are consistent with Applied Magnetics' goals to achieve a leadership
position in cost, quality and technology to support key customer programs and
ensure the Company's long-term success."
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The Company also announced today that Dr. Richard D. Balanson had resigned
as President and Chief Operating Officer. Bill Anderson will assume the
additional role of President.
Applied Magnetics Corporation, headquartered in Goleta, California, is a
leading independent supplier of magnetic recording heads for both disk and tape
drive applications for the worldwide data storage segment of the computer
industry. Applied Magnetics' stock is listed on the New York Stock Exchange,
trading under the symbol APM.
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