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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. 2)
Executone Information Systems, Inc.
(Name of Issuer)
Common Stock
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(Title of Class of Securities)
301607107
(CUSIP Number)
Andrew E. Shapiro, Manager Christopher J. Rupright,
Esq.
Lawndale Capital Management, LLC Shartsis Friese &
Ginsburg LLP
One Sansome Street, Suite 3900 One Maritime Plaza, 18th
Floor
San Francisco, CA 94104 San Francisco, CA 94111
(415) 288-2330 (415) 421-6500
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April 13, 1999
(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).
Potential persons who are to respond to the collection of
information contained in this form are not required to respond
unless the form displays a currently valid OMB control number.
SEC 1746 (10-97)
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CUSIP No. 301607107 Page 2 of
11 pages
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1 NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
Lawndale Capital Management, LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
/ X /
(b)
/ /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
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5 CHECK BOX 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
California
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NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY ---------------------------------------
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OWNED BY 8 SHARED VOTING POWER
EACH 2,554,800
REPORTING ---------------------------------------
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PERSON 9 SOLE DISPOSITIVE POWER
WITH -0-
---------------------------------------
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10 SHARED DISPOSITIVE POWER
2,554,800
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,554,800
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
/ /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.1
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14 TYPE OF REPORTING PERSON*
OO and IA
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CUSIP No. 301607107 Page 3 of
11 pages
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1 NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
Andrew E. Shapiro
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
/X /
(b)
/ /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
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5 CHECK BOX 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 7 SOLE VOTING POWER
SHARES 19,193
BENEFICIALLY ---------------------------------------
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OWNED BY 8 SHARED VOTING POWER
EACH 2,554,800
REPORTING ---------------------------------------
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PERSON 9 SOLE DISPOSITIVE POWER
WITH 19,193
---------------------------------------
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10 SHARED DISPOSITIVE POWER
2,554,800
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,573,993
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
/ /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.1
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14 TYPE OF REPORTING PERSON*
IN
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CUSIP No. 301607107 Page 4 of
11 pages
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1 NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
Diamond A Partners, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
/X /
(b)
/ /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX 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
California
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NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY ---------------------------------------
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OWNED BY 8 SHARED VOTING POWER
EACH 2,163,200
REPORTING ---------------------------------------
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PERSON 9 SOLE DISPOSITIVE POWER
WITH -0-
---------------------------------------
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10 SHARED DISPOSITIVE POWER
2,163,200
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,163,200
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
/ /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.4
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14 TYPE OF REPORTING PERSON*
PN
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CUSIP No. 301607107 Page 5 of
11 pages
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1 NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
Diamond A Investors, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
/X /
(b)
/ /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX 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
California
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NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY ---------------------------------------
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OWNED BY 8 SHARED VOTING POWER
EACH 391,600
REPORTING ---------------------------------------
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PERSON 9 SOLE DISPOSITIVE POWER
WITH -0-
---------------------------------------
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10 SHARED DISPOSITIVE POWER
391,600
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
391,600
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
/ /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.6
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14 TYPE OF REPORTING PERSON*
PN
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CUSIP No. 301607107 Page 6 of
11 pages
ITEM 1. SECURITY AND ISSUER.
This statement relates to Common Stock (the "Stock") of
Executone Information Systems, Inc. ("ELOT"). The principal
executive office of ELOT is located at 478 Wheelers Farms Road,
Milford, CT 06460.
ITEM 2. IDENTITY AND BACKGROUND.
The persons filing this statement and the persons enumerated in
Instruction C of Schedule 13D and, where applicable, their
respective places of organization, general partners, directors,
executive officers and controlling persons, and the information
regarding them, are as follows:
(a) Lawndale Capital Management, LLC, a California limited
liability company ("LCM"); Diamond A Partners, L.P., a
California limited partnership ("DAP"); Diamond A Investors,
L.P., a California limited partnership ("DAI"); and Andrew E.
Shapiro ("Shapiro").
(b) The business address of LCM, DAP, DAI and Shapiro is One
Sansome Street, Suite 3900, San Francisco, California 94104.
(c) LCM is the investment adviser to and general partner of DAP
and DAI, which are investment limited partnerships. Shapiro is
the sole manager of LCM.
(d) During the last five years, none of such persons has been
convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors).
(e) During the last five years, none of such persons was a
party to a civil proceeding of a judicial or administrative body
of competent jurisdiction and as a result of such proceeding was
or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities
subject to, federal or state securities laws or finding any
violation with respect to such laws.
(f) Shapiro is a citizen of the United States of America.
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CUSIP No. 301607107 Page 7 of
11 pages
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The source and amount of funds used in purchasing the Stock were
as follows:
Purchaser Source of Funds Amount
LCM Funds Under Management(1) $5,091,003
DAP Working Capital $4,335,968
DAI Working Capital $ 755,035
Shapiro Personal Funds $ 84,792
(1) Includes funds of DAP and DAI invested in Stock.
ITEM 4. PURPOSE OF TRANSACTION.
The Reporting Persons ("Lawndale") acquired the Stock solely for
investment
purposes.
Lawndale has been and may continue to be in contact with ELOT's
management, members of ELOT's Board of Directors, other
significant shareholders, prospective customers, transaction
partners and others regarding alternatives ELOT plans to
maximize shareholder value.
On March 29, 1999, ELOT announced that it will divest its core
telephony and healthcare businesses, change the name of the
Company to eLottery, Inc. and focus the company's business on
the electronic distribution of lottery tickets over the
Internet, Intranet and via telephony.
Lawndale is pleased with ELOT's decision to focus on the
eLottery business. This amendment reflects Lawndale's reduced
ownership of ELOT resulting from the conversion of ELOT's
preferred shares into new common shares and the sales of shares.
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CUSIP No. 301607107 Page 8 of
11 pages
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
The beneficial ownership of the Stock of the persons named in
Item 2 of this statement is as follows at the date hereof:
Aggregate
Beneficially
Owned Voting Power
Dispositive Power
Name Number Percent Sole Shared Sole
Shared
LCM 2,554,800 4.1 -0- 2,554,800 -0-
2,554,800
Shapiro 2,573,993 4.1 19,193 2,554,800 19,193
2,554,800
DAP 2,163,200 3.4 -0- 2,163,200 -0-
2,163,200
DAI 391,600 0.6 -0- 391,600 -0-
391,600
The persons filing this statement effected the following
transactions in the Stock on the dates indicated, and such
transactions are the only transactions in the Stock by the
persons filing this statement since February 17, 1999:
Purchase Number Price
Name or Sale Date of Shares Per Share
DAP P 02/17/99 4,500 $2.733
DAI P 02/17/99 1,000 $2.733
Shapiro P 02/19/99 (1)
DAP P 02/22/99 7,700 $2.672
DAP P 02/22/99 5,000 $2.688
DAI P 02/22/99 2,300 $2.672
DAP P 02/23/99 8,400 $2.594
DAI P 02/23/99 1,600 $2.594
DAP S 03/01/99 62,900 $2.946
DAI S 03/01/99 11,900 $2.946
DAP S 03/02/99 21,100 $3.200
DAI S 03/02/99 3,900 $3.200
DAP S 03/05/99 8,500 $3.000
DAI S 03/05/99 1,500 $3.000
DAP S 03/11/99 32,100 $3.268
DAI S 03/11/99 5,900 $3.268
DAP S 03/15/99 2,600 $3.000
DAI S 03/15/99 500 $3.000
DAP S 03/16/99 17,000 $3.000
DAI S 03/16/99 3,000 $3.000
DAP S 03/18/99 40,000 $3.192
DAI S 03/18/99 7,000 $3.192
DAP S 03/19/99 4,200 $3.063
DAI S 03/19/99 1,100 $3.063
DAP S 03/30/99 10,100 $3.563
DAI S 03/30/99 1,900 $3.563
DAP S 03/31/99 17,000 $3.641
DAI S 03/31/99 3,000 $3.641
DAP S 04/01/99 19,700 $3.625
DAI S 04/01/99 5,300 $3.625
(Table continued on next page)
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CUSIP No. 301607107 Page 9 of
11 pages
(Table continued from previous page)
DAP S 04/05/99 42,300 $3.824
DAI S 04/05/99 7,700 $3.824
DAP S 04/06/99 83,200 $4.273
DAI S 04/06/99 15,100 $4.273
DAP S 04/08/99 148,000 $5.652
DAI S 04/08/99 27,000 $5.652
DAP S 04/09/99 94,000 $6.240
DAI S 04/09/99 17,000 $6.240
DAP S 04/12/99 53,900 $7.029
DAI S 04/12/99 11,100 $7.029
DAP S 04/13/99 93,100 $8.747
DAP S 04/13/99 32,200 $9.110
DAI S 04/13/99 16,900 $8.747
DAI S 04/13/99 5,800 $9.110
DAP S 04/14/99 42,300 $11.248
DAI S 04/14/99 7,700 $11.248
DAP S 04/16/99 42,300 $10.008
DAP S 04/16/99 133,000 $10.062
DAI S 04/16/99 7,700 $10.008
DAI S 04/16/99 24,100 $10.062
DAP S 04/19/99 8,500 $10.909
DAI S 04/19/99 1,500 $10.909
(1) On 2/19/99, Shapiro purchased $25,000 principal amount of
ELOT 7.5% Convertible Subordinated Debentures, due 3/15/2011,
for a price of $15,816.25. The Debentures are convertible into
Stock at $10.625 per share, for a total of 2,353 shares of
Stock.
All transactions were executed through the Nasdaq National
Market System.
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CUSIP No. 301607107 Page 10
of 11 pages
ITEM. 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER.
LCM is the general partner of DAP and DAI pursuant to limited
partnership agreements providing to LCM the authority, among
other things, to invest the funds of DAP and DAI in Stock, to
vote and dispose of Stock and to file this statement on behalf
of DAP and DAI. Pursuant to such limited partnership
agreements, the general partner of DAP and DAI is entitled to
allocations based on assets under management and realized and
unrealized gains.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
A. Agreement Regarding Joint Filing of Statement on Schedule
13D or 13G.
SIGNATURES
After reasonable inquiry and to the best of my knowledge, I
certify that the information set forth in this statement is
true, complete and correct.
DATED: April 22, 1999.
DIAMOND A PARTNERS, L.P. DIAMOND A INVESTORS,
L.P.
By: Lawndale Capital Management, LLC By: Lawndale Capital
Management, LLC
General Partner General Partner
By: /s/ Andrew E. Shapiro By: /s/ Andrew E.
Shapiro
Andrew E. Shapiro Andrew E.
Shapiro
Manager Manager
LAWNDALE CAPITAL MANAGEMENT, LLC
By: /s/ Andrew E. Shapiro /s/ Andrew E.
Shapiro
Andrew E. Shapiro Andrew E. Shapiro
Manager
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CUSIP No. 301607107 Page 11
of 11 pages
EXHIBIT A
AGREEMENT REGARDING JOINT FILING
OF STATEMENT ON SCHEDULE 13D OR 13G
The undersigned agree to file jointly with the Securities and
Exchange Commission (the "SEC") any and all statements on
Schedule 13D or Schedule 13G (and any amendments or supplements
thereto) required under section 13(d) of the Securities Exchange
Act of 1934, as amended, in connection with purchases by the
undersigned of Common Stock of Executone Information Systems,
Inc. For that purpose, the undersigned hereby constitute and
appoint Lawndale Capital Management, LLC, a California limited
liability company, as their true and lawful agent and attorney-
in-fact, with full power and authority for and on behalf of the
undersigned to prepare or cause to be prepared, sign, file with
the SEC and furnish to any other person all certificates,
instruments, agreements and documents necessary to comply with
section 13(d) and section 16(a) of the Securities Exchange Act
of 1934, as amended, in connection with said purchases, and to
do and perform every act necessary and proper to be done
incident to the exercise of the foregoing power, as fully as the
undersigned might or could do if personally present.
DATED: June 15, 1998.
DIAMOND A PARTNERS, L.P. DIAMOND A INVESTORS,
L.P.
By: Lawndale Capital Management, LLC By: Lawndale Capital
Management, LLC
General Partner General Partner
By: /s/ Andrew E. Shapiro By: /s/ Andrew E.
Shapiro
Andrew E. Shapiro Andrew E. Shapiro
Manager Manager
LAWNDALE CAPITAL MANAGEMENT, LLC
By: /s/ Andrew E. Shapiro /s/ Andrew E.
Shapiro
Andrew E. Shapiro Andrew E. Shapiro
Manager
CJR\3693\012\1041791.01
