<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. )*
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SI TECHNOLOGIES, INC.
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(Name of Issuer)
Common Stock, $.01 par value
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(Title of Class of Securities)
783978109
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(CUSIP Number)
David Mainzer, Esq.
Buchalter, Nemer, Fields & Younger
601 S. Figueroa Street, Suite 2400, Los Angeles, CA 90017
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
April 17, 1998
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following
box / /.
NOTE: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are to
be sent.
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
(Continued on following page(s))
Page 1 of 5 Pages
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CUSIP No. 783978109 13D Page 2 of 5 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
J. CARLO CANNELL
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(2) Check the Appropriate Box if a Member (a) /X/
of a Group* (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
00
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
UNITED STATES
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Number of Shares (7) Sole Voting Power
Beneficially Owned -0-
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
959,680
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(9) Sole Dispositive Power
-0-
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(10) Shared Dispositive Power
959,680
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
959,680
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares*
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(13) Percent of Class Represented by Amount in Row (11)
25.9%
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(14) Type of Reporting Person*
IA
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*SEE INSTRUCTION BEFORE FILLING OUT!
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CUSIP No. 783978109 13D Page 3 of 5 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
THE CUTTYHUNK FUND LIMITED
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(2) Check the Appropriate Box if a Member (a) /X/
of a Group* (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
WC
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
BERMUDA
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Number of Shares (7) Sole Voting Power
Beneficially Owned 479,840
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
-0-
--------------------------------------------------
(9) Sole Dispositive Power
479,840
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(10) Shared Dispositive Power
-0-
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
959,680
- -------------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares*
- -------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
25.9%
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(14) Type of Reporting Person*
00
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*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
CUSIP No. 783978109 13D Page 4 of 5 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
TONGA PARTNERS, L.P. 94-3164039
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(2) Check the Appropriate Box if a Member (a) /X/
of a Group* (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
DELAWARE
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Number of Shares (7) Sole Voting Power
Beneficially Owned 479,840
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
-0-
--------------------------------------------------
(9) Sole Dispositive Power
479,840
--------------------------------------------------
(10) Shared Dispositive Power
-0-
- -------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
959,680
- -------------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares*
- -------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
25.9%
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(14) Type of Reporting Person*
PN
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*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
Page 5 of 5 Pages
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ITEM 1. SECURITY AND ISSUER
This statement relates to Common Stock, $.01 par value per share
("Common Stock"), issued by SI Technologies, Inc., a Delaware Corporation
("SI"). The address of the principal executive offices of SI is 4511 South
134th Place, Tukwila, Washington 98168.
ITEM 2. IDENTITY AND BACKGROUND
This statement is filed on behalf of the following persons:
J. Carlo Cannell ("Cannell") of c/o Cannell Capital Management, 600
California Street, Floor 14, San Francisco, California 94108. Cannell is an
investment adviser.
The Cuttyhunk fund Limited, a Bermuda Company ("Cuttyhunk"), of 73
Front Street, Hamilton, HM 12, Bermuda. Cuttyhunk's principal business is
investment.
Tonga Partners, L.P., a Delaware limited partnership ("Tonga"), of
c/o Cannell Capital Management, 600 California Street, Floor 14, San
Francisco, California 94108. Tonga's principal business is investment.
None of the above persons has, during the last five years, been
either (a) convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors) or (b) a party to a civil proceeding of a judicial
or administrative body of competent jurisdiction, as the result of such
proceedings was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activity subject to, federal
or state securities laws or finding any violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Cuttyhunk purchased 399,840 shares of Common Stock and two year
warrants to purchase 80,000 shares of Common Stock at $8.00 per share ("Two
Year Warrants") for $2,000,000, the source of which was Cuttyhunk's working
capital.
Tonga purchased 399,840 shares of Common Stock and 80,000 Two Year
Warrants for $200,000,000, the source of which was Tonga's working capital.
ITEM 4. PURPOSE OF TRANSACTION
The purpose of the transactions described below is passive investment.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
The aggregate number of shares of outstanding Common Stock is
3,547,123, based on SI's Quarterly Report on Form 10Q, filed with the SEC as
of December 15, 1998, for the fiscal year ended July 31, 1998. For the
purposes of percentage calculations under this Item 5, the number of
outstanding shares is increased to reflect the exercise of the Two Year
Warrants on a diluted basis.
Each of the persons identified in Item 2 is the beneficial owner of
959,680 shares of Common Stock, representing 25.9% of the outstanding Common
Stock on a diluted basis, as a result of the following:
On April 17, 1998, SI issued to Cuttyhunk 399,840 shares of common
Stock and 80,000 Two Year Warrants. Pursuant to Rule 13d-3-(d)(l)(i) under the
Securities Exchange Act of 1934 (the "Exchange Act"), Cuttyhunk is the
beneficial owner of the 80,000 shares of Common Stock subject to the Two Year
Warrants because Cuttyhunk has the right to acquire such Common Stock within
60 Days.
Cannell is the Investment Adviser to Cuttyhunk. Pursuant to Rule
13-d(a) under the Exchange Act, Cannell is the beneficial owner of the
479,840 shares of Common Stock held by Cuttyhunk because Cannell has shared
power to direct the voting and disposition of such shares.
On April 17, 1998, SI issued to Tonga 399,840 shares of Common Stock
and 80,000 Two Year Warrants. Pursuant to Rule 13d-3-(d)(l)(i) under the
Exchange Act, Tonga is the beneficial owner of the 80,000 shares of Common
Stock subject to the Two Year Warrants because Tonga has the right to acquire
such Common Stock within 60 days.
Cannell is the General Partner of Tonga. Pursuant to Rule 13d-3(a)
under the Exchange Act, Cannell is the beneficial owner of the 479,840 shares
of Common Stock held by Tonga because Cannell has shared power to direct the
voting and disposition of such shares.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
As described above, Cannell has the power to direct the voting and
disposition of the Common Stock held by Cuttyhunk and Tonga. Pursuant to Rule
13d-5(b)(l) under the Exchange Act, Cannell, Cuttyhunk and Tonga constitute a
group because they have agreed to act together for the purposes of acquiring
and holding the Common Stock described above.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit No. Description
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4.1 Form of Subscription AGreement incorporated by
reference to Exhibit 4.1 to the form S-3 of SI filed
as of July 31, 1998
4.2 Form of Subscription Agreement Supplement
incorporated by reference to Exhibit 4.2 to the
form S-3 of SI filed as of July 31, 1998
4.3 Form of Warrant incorporated by reference to
Exhibit 4.3 to the form S-3 of SI filed as of
July 31, 1998
4.4 Registration Rights Agreement incorporated by
reference to Exhibit 4.5 to the form S-3 of SI filed
as of July 31, 1998
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
December 18, 1998
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(Date
THE CUTTYHUNK FUND LIMITED
/s/ J. Carlo Cannell By /s/ J. Carlo Cannell
- ------------------------ -------------------------------------
J. Carlo Cannell J. Carlo Cannell, Investment Adviser
TONGA PARTNERS, L.P.
By /s/ J. Carlo Cannell
-------------------------------------
J. Carlo Cannell, General Partner
