<PAGE>
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): 23 October 1997
ALPNET, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
UTAH 0-15512 87-0356708
- --------------------------------------------------------------------------------
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
4460 South Highland Drive #100
Salt Lake City, Utah 84124-3543
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (801) 273-6600
Former name or former address, if changed since last report: Not applicable
1
<PAGE>
Item 5. Other Events --- Press Release: "ALPNET Announces Record Earnings for
Third Quarter 1997"
23 October 1997 - Salt Lake City, Utah. ALPNET, Inc. (NASDAQ: AILP), the
------------ ------------
international translation and localization services company, today announced
results for the quarter and nine months ended 30 September 1997. Total revenues
for the quarter were $10.2 million with record net income of $742,000 or $.029
per share, compared to revenues of $7.5 million with net income of $22,000 or
$.001 per share for the third quarter of 1996. For the nine months ended 30
September 1997, total revenues were $29.4 million with net income of $785,000 or
$.034 per share, compared to revenues of $23.1 million with net income of
$714,000 or $.028 per share for the nine months ended 30 September 1996.
In announcing the results, Jaap van der Meer, ALPNET president, stated, "These
record high earnings indicate that ALPNET's 'revitalization' strategy
implemented in 1995 is beginning to produce solid returns. By fiscal year end
1997, the Company expects to see revenues nearly double from 1994. This sharp
growth is a result of the Company's strategic shift from a production based
model to a solution based model. Driven by a client and market focus, ALPNET
continues to develop strong partnerships with new global clients. In the past
two years we have added approximately 150 highly skilled and talented people to
our staff and have opened new production centers and customer service offices in
strategic markets. Our goal is to generate about 70%-80% of our revenues from
approximately 30-40 large global clients without sacrificing our baseline
revenues."
"Several factors contribute to ALPNET's improved profitability, including: 1)
global account strategy, 2) increased utilization of technology, and 3) better
utilization of our network of offices."
"Our global account strategy is improving the Company's profitability as we
focus our services on long-term relationships with a strategic number of large
multinational clients. This concentration allows us to benefit from improved
learning curves and increased efficiencies from the use of technology and also
keeps project administration costs to a minimum."
"Since ALPNET ported its translation tools to Windows last year, the number of
translators using these productivity tools has grown significantly. This
proprietary technology gives ALPNET a distinctive advantage and has contributed
to improvement in profitability."
"The increased utilization of our network of offices is strengthening
profitability as well. ALPNET's global network of offices was designed and
developed to provide clients with value-added translation and localization
services. In the past, the underutilization of resources and office
infrastructure contributed to less than expected returns in some of ALPNET's
medium-sized operations such as the Netherlands and France, however, recent
sales growth coupled with efficient utilization has turned most of these
operations into profitable entities. Going forward, immediate corrective actions
will be taken to remedy any underperforming offices in the network."
"ALPNET has a distinct advantage in its competitive position in this industry
because of two key factors: 1) the size of our global network which is located
on three continents and well positioned to service any multinational business,
and 2) the diversification of our services."
"ALPNET's competitive position has improved significantly. While some of our
major competitors are fully occupied with mergers and acquisitions to build a
global network such as ours, ALPNET is developing global client partnerships.
2
<PAGE>
ALPNET's presence in thirteen countries on three continents makes it the largest
dedicated translation and localization service provider in the world. ALPNET's
early entrance (in 1987) in this emerging industry has created a competitive
advantage for the Company."
"An additional advantage is ALPNET's broad base of expertise. While some of our
competitors are fully specialized in software localization, ALPNET has its roots
in various global industries, such as the information technology industry, the
automotive industry, financial services, engineering and telecom industries. We
are experiencing a push for more integrated multilingual publishing solutions in
all of these industries. ALPNET is finding opportunities to provide new value
added services to clients in various industries and our broad market scope makes
us less vulnerable to the cycles of one particular industry."
"Management believes that the strategies and competitive advantages mentioned
above will help ALPNET experience continued growth and profitability in the
future. Our challenge is to find the capable resources that can help us meet our
clients' requirements."
ALPNET is the largest publicly-owned dedicated supplier of worldwide translation
and product localization services, with more than 400 employees working in 13
countries throughout Europe, North America and Asia. ALPNET supplies its clients
with language translation, product localization and multilingual publishing
solutions. Additional information about ALPNET is available on the World Wide
Web at http://www.alpnet.com. Additionally, a copy of ALPNET Review or an
investor package can be obtained by calling our Investor Relations Department.
3
<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.
ALPNET, Inc.
--------------------------------
(Registrant)
Date: 23 October 1997 /s/ Michael F. Eichner
--------------------------------
Michael F. Eichner
Chairman of the Board
Date: 23 October 1997 /s/ D. Kerry Stubbs
---------------------------------
D. Kerry Stubbs
Chief Financial Officer
4
