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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): July 10, 1998
ZITEL CORPORATION
(Exact name of Registrant as specified in charter)
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<CAPTION>
<S> <C> <C>
California 0-12194 94-2566313
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
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47211 Bayside Parkway
Fremont, California 94538-6517
(Address of principal executive offices) (Zip Code)
Company's telephone number, including area code: (510) 440-9600
N/A
(Former name or former address if changed since last report.)
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ITEM 5. OTHER EVENTS
The Company has adopted Statement of Financial Accounting Standards (SFAS)
No. 128. This Statement requires the presentation of basic and diluted net
income per share. Basic net income per common share is computed using the
weighted average number of common shares outstanding during the period.
Diluted net income per share is computed using the weighted average number of
common and dilutive common equivalent shares outstanding during the period.
Dilutive common equivalent shares consist of stock options. The Company has
restated all prior period per share data presented as required by SFAS No.
128. Restated numbers as computed using the diluted method under SFAS No.
128 approximate those computed using the primary method as defined n
Accounting Principals Board Opinion No. 15.
Share and per share data presented reflect the two-for-one stock split, which
was effective November 27, 1996.
The following table presents the restated annual EPS (in thousands, except
per share amounts):
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<CAPTION>
1997 1996 1995
(unaudited)
------------------------------------------
<S> <C> <C> <C>
Numerator - Basic and Diluted EPS
Net income (loss) $(17,501) $ 4,049 $ 8,526
======== ======= =======
Denominator - Basic EPS
Common stock outstanding 15,222 14,726 14,157
-------- ------- -------
15,222 14,726 14,157
-------- ------- -------
Basic income (loss) per share $ (1.15) $ 0.27 $ 0.60
======== ======= =======
Denominator - Diluted EPS
Denominator - Basic EPS 15,222 14,726 14,157
Effect of Dilutive Securities:
Common stock options 0 900 1,009
-------- ------- -------
15,222 15,626 15,166
-------- ------- -------
Diluted income (loss) per share $ (1.15) $ 0.26 $ 0.56
======== ======= =======
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The following table summarizes quarterly data for the first and
second quarters of fiscal 1998 and for fiscal years 1997 and 1996
(in thousands, except per share amounts):
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<TABLE>
<CAPTION>
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
1998 1997 1997 1997 1997 1996 1996 1996 1996 1995
(unaudited)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Numerator - Basic and Diluted EPS
Net income (loss) $(5,490) $(4,496) $(7,046) $(7,973) $(1,914) $ (567) $ 276 $ 1,146 $ 984 $ 1,643
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Denominator - Basic EPS
Common stock outstanding 16,646 15,704 15,439 15,280 15,234 14,953 14,855 14,796 14,675 14,572
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
16,646 15,704 15,439 15,280 15,234 14,953 14,855 14,796 14,675 14,572
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Basic income (loss) per share $ (0.33) $ (0.29) $ (0.46) $ (0.52) $ (0.13) $ (0.04) $ 0.02 $ 0.08 $ 0.07 $ 0.11
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Denominator- Diluted EPS
Denominator - Basic EPS 16,646 15,704 15,439 15,280 15,234 14,953 14,855 14,796 14,675 14,572
Effect of Dilutive Securities:
Common stock options 0 0 0 0 0 0 855 986 887 872
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
16,646 15,704 15,439 15,280 15,234 14,953 15,710 15,782 15,562 15,444
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Diluted income (loss) per share $ (0.33) $ (0.29) $ (0.46) $ (0.52) $ (0.13) $ (0.04) $ 0.02 $ 0.07 $ 0.06 $ 0.11
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the Registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
ZITEL CORPORATION
Dated: July 10, 1998 Jack H. King
Jack H. King
President and Chief Executive
Officer
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