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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 1)*
SQA, INC.
-------------------------------------------------------------
(Name of Issuer)
COMMON STOCK, $0.01 PAR VALUE PER SHARE
---------------------------------------------------
(Title of Class of Securities)
784637100
-----------------------------------------
(CUSIP Number)
PAUL D. LEVY, RATIONAL SOFTWARE CORPORATION, 2800 SAN TOMAS EXPRESSWAY,
- --------------------------------------------------------------------------------
SANTA CLARA, CA 95051 (408) 496-3600
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
November 12, 1996
-----------------------------------------------------------
(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 [_].
Check the following box if a fee is being paid with the statement [_]. (A fee
is not required only if the reporting person: (1) has a previous statement on
file reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
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).
<PAGE>
SCHEDULE 13D
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CUSIP NO. 784637100 PAGE 1 OF 11 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
RONALD H. NORDIN
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
00
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
CANADA
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF -0-
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
123,247(1)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 123,247(1) (Subject to the restrictions set forth in
that certain Affiliate Agreement dated November 12,
PERSON 1996 filed as Exhibit 5 to this Schedule 13D)
WITH -----------------------------------------------------------
SHARED DISPOSITIVE POWER
10
-0-
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
123,247(1)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
1.4%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
(1) Includes 95,217 shares of Common Stock issuable pursuant to stock options
that are currently exercisable or will become exercisable within 60 days
of November 12, 1996. Includes 12,000 shares of Common Stock held by Mr.
Nordin's spouse, as to which Mr. Nordin disclaims beneficial ownership.
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 784637100 PAGE 2 OF 11 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
JAMES P. CLUCHEY
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
00
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
CANADA
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF -0-
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
13,950(1)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 13,950(1)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
-0-
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
13,950(1)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0.15%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
(1) Includes 13,350 shares of Common Stock issuable pursuant to stock options
that are exercisable or will become exercisable within 60 days
of November 12, 1996.
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP NO. 784637100 PAGE 3 OF 11 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DEBRA S. TERNOVE
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
00
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
U.S.
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF -0-
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
-0-
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING -0-
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
-0-
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
-0-
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0.0%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP NO. 784637100 PAGE 4 OF 11 PAGES
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Neither the filing of this Schedule 13D nor any of its contents shall be
deemed to constitute an admission by Rational Software Corporation, Highland
Capital Partners II Limited Partnership or its Managing General Partner
Highland Management Partners II Limited Partnership, Aegis Select Limited
Partnership, Aegis II Limited Partnership, North Bridge Venture Partners or
its Managing General Partner, North Bridge Venture Management L.P., Ronald H.
Nordin, Thomas F. Bogan, Frederick J. Ciaramaglia, William T. Dedrick, Roger
A. Hodskins, David J. Orfao, Eric L. Schurr, Edward T. Anderson, Thomas I.
Csathy, Ted R. Dintersmith, Jerald G. Fishman, Debra S. Ternove, James P.
Cluchey, or Paul A. Maeder (collectively, the "SQA Stockholders") that it or
----------------
he is the beneficial owner of any of the Common Stock referred to herein,
other than shares of SQA Common Stock issued and outstanding and owned of
record by the aforementioned persons as of the date hereof, for purposes of
Section 13(d) of the Securities Exchange Act of 1934, as amended (the "Act"),
---
or for any other purpose, and such beneficial ownership is expressly
disclaimed. Any information contained herein as to any Individual has been
provided by such Individual, and any information contained herein as to
Rational Software Corporation has been provided by Rational Software
Corporation.
ITEM 1. SECURITY AND ISSUER.
This statement on Schedule 13D relates to the common stock, par value $0.01
per share ("Issuer Common Stock"), of SQA, Inc., a Delaware corporation
-------------------
("Issuer"). The principal executive offices of Issuer are located at One
------
Burlington Woods, Burlington, Massachusetts 01803.
ITEM 2. IDENTITY AND BACKGROUND.
The names of the people filing this statement are Rational Software
Corporation, a Delaware corporation ("Rational"), Highland Capital Partners II
--------
Limited Partnership and its Managing General Partner is Highland Management
Partners II Limited Partnership, Aegis Select Limited Partnership, Aegis II
Limited Partnership, North Bridge Venture Partners and its Managing General
Partner North Bridge Venture Management, L.P., Ronald H. Nordin, Thomas F.
Bogan, Frederick J. Ciaramaglia, William T. Dedrick, Roger A. Hodskins, David J.
Orfao, Eric L. Schurr, Edward T. Anderson, Thomas I. Csathy, Ted R. Dintersmith,
Jerald G. Fishman, Paul A. Maeder, Debra S. Ternove, and James P. Cluchey. The
address of the principal office and principal business of Rational is 2800 San
Tomas Expressway, Santa Clara, California 95051. Rational develops, markets and
supports a comprehensive solution for the component-based development of
software systems. Set forth in Schedule A is a list of each of Rational's
directors and executive officers, as of the date hereof, along with the present
principal occupation or employment of such directors and executive officers,
their respective citizenship and the name, principal business and address of any
corporation or other organization other than Rational in which such employment
is conducted. Set forth in Schedule B is a list of each the SQA Stockholders,
their business address, principal occupation or employment and the name,
principal business and address of any corporation or other organization in which
such employment is conducted and their citizenship.
During the past five years neither Rational nor any of the SQA Stockholders
nor, to Rational's knowledge, any person named in Schedule A to this statement,
has been convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors). Also during the past five years neither Rational nor any
of the SQA Stockholders nor, to Rational's knowledge, any person named in
Schedule A to this statement, was a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction as a result of which such person
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.
<PAGE>
SCHEDULE 13D
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CUSIP NO. 784637100 PAGE 5 OF 11 PAGES
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct.
Dated: January 13, 1997
/s/ Ronald H. Nordin
---------------------
Ronald H. Nordin
<PAGE>
SCHEDULE 13D
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CUSIP NO. 784637100 PAGE 6 OF 11 PAGES
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct.
Dated: January 13, 1997
/s/ Debra S. Ternove
--------------------
Debra S. Ternove
<PAGE>
SCHEDULE 13D
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CUSIP NO. 784637100 PAGE 7 OF 11 PAGES
- ----------------------- ---------------------
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct.
Dated: January 13, 1997
/s/ James P. Cluchey
--------------------
James P. Cluchey
<PAGE>
SCHEDULE 13D
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CUSIP NO. 784637100 PAGE 8 OF 11 PAGES
- ----------------------- ---------------------
SCHEDULE B
<TABLE>
<CAPTION>
Principal Occupation or Name and Address of Corporation or
Individual Employment Other Organization in Which Employed Citizenship
- -------------------------- ------------------------------- ------------------------------------ -----------
<S> <C> <C> <C>
Ronald H. Nordin President SQA, Inc. Canada
One Burlington Woods
Burlington, MA 01803
Frederick J. Ciaramaglia Vice President, Research and SQA, Inc. U.S.
Development One Burlington Woods
Burlington, MA 01803
William T. Dedrick Vice President, U.S. Sales SQA, Inc. U.S.
One Burlington Woods
Burlington, MA 01803
Roger A. Hodskins Vice President, Enterprise SQA, Inc. U.S.
Partners One Burlington Woods
Burlington, MA 01803
Eric L. Schurr Vice President, Product SQA, Inc. U.S.
Management and Marketing One Burlington Woods
Burlington, MA 01803
Thomas F. Bogan Senior VP, Finance and Chief SQA, Inc. U.S.
Financial Officer One Burlington Woods
Burlington, MA 01803
David J. Orfao Senior VP, Worldwide Sales and SQA, Inc. U.S.
Support One Burlington Woods
Burlington, MA 01803
James P. Cluchey Vice President, Managing SQA, Inc. Canada
Director of European Operations One Burlington Woods
Burlington, MA 01803
Debra S. Ternove Vice President, Human SQA, Inc. U.S.
Resources One Burlington Woods
Burlington, MA 01803
Edward T. Anderson General Partner North Bridge Venture Capital U.S.
404 Wyman Street
Waltham, MA 02154
Thomas I. Csathy President T.I. Csathy Associates, Inc. Canada
60 MacNabb Place
Rockcliffe Park, Ontario
K1L 8J4 Canada
Ted R. Dintersmith General Partner Charles River Ventures U.S.
Bay Colony Corporate Center
1000 Winter Street, Suite 3300
</TABLE>
<PAGE>
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CUSIP NO. 784637100 PAGE 9 OF 11 PAGES
- ----------------------- ---------------------
<TABLE>
<CAPTION>
Principal Occupation or Name and Address of Corporation or
Individual Employment Other Organization in Which Employed Citizenship
- -------------------------- ------------------------------- ------------------------------------ -----------
<S> <C> <C> <C>
Jerald G. Fishman President Analog Devices U.S.
One Technology Way
P.O. Box 9106
Norwood, MA 02062
Paul A. Maeder General Partner Highland Capital Partners U.S.
Two International Place, 22nd Floor
Boston, MA 02110
</TABLE>
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 784637100 PAGE 10 OF 11 PAGES
- ----------------------- ---------------------
SCHEDULE C
<TABLE>
<CAPTION>
Individual Percentage of
Outstanding Shares of
Number of Shares Issuer of Issuer Common Stock as
Individual Common Stock Beneficially Owned of November 12, 1996
- ---------------------------------- ------------------------------- ------------------------
<S> <C> <C>
Highland Capital Partners II 628,180 6.59%
Limited Partnership or its
Managing General Partner,
Highland Management Partners II
Limited Partnership
Aegis Select Limited Partnership 109,290 1.15%
& Aegis II Limited Partnership
North Bridge Venture Partners or 506,363 5.32%
its Managing General Partner,
North Bridge Venture
Management, L.P.
DIRECTORS
- -----------------------------------
Edward T. Anderson 43,547 0.46%
Ted R. Dintersmith 14,642 0.15%
Paul A. Maeder 73,832 0.78%
Thomas I. Csathy 1,000 0.01%
OFFICERS
- -----------------------------------
Ronald H. Nordin 123,247 (includes right to 1.41%
acquire 95,217)
Frederick J. Ciaramaglia 14,070 (includes right to 0.15%
acquire 12,320)
William T. Dedrick 2,640 (includes right to 0.03%
acquire 2,640)
Roger A. Hodskins 4,519 (includes right to 0.05%
acquire 4,225)
Eric L. Schurr 4,130 (includes right to 0.04%
acquire 4,130)
David J. Orfao 20,000 (includes right to 0.21%
acquire 20,000)
James P. Cluchey 13,950 (includes right to 0.15%
acquire 13,350)
</TABLE>
<PAGE>
SCHEDULE 13D
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CUSIP NO. 784637100 PAGE 11 OF 11 PAGES
- ----------------------- ---------------------
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this amended schedule to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: January 13, 1997
RATIONAL SOFTWARE CORPORATION
By: /s/ Timothy A. Brennan
------------------------------------------
Timothy A. Brennan
Vice President, Finance and Administration
