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Previous: SHEFFIELD EXPLORATION CO INC, SC 13D, 1996-06-13 |
Next: BEDFORD PROPERTY INVESTORS INC/, SC 13G/A, 1996-06-13 |
<PAGE> 1
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------
FORM 8-K/A
(AMENDMENT NO. 1)
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
April 2, 1996
------------------------------------------------
Date of Report (Date of earliest event reported)
MICROGRAFX, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Texas 0-18708 75-952080
- -------------------------- ------------------- -------------------
(State or other jurisdiction of Commission File No. (IRS Employer
incorporation or organization) Identification No.)
1303 Arapaho
Richardson, Texas 75081
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(214) 234-1769
-------------------------------
(Registrant's telephone number)
================================================================================
<PAGE> 2
MICROGRAFX, INC.
Item 2. Acquisition or Disposition of Assets
On April 2, 1996, Micrografx, Inc. ("Micrografx" or "the Company") acquired all
of the issued and outstanding capital stock and options of Visual Software,
Inc., a California corporation ("Visual"). In connection with the acquisition,
Micrografx also agreed to exchange shares of its common stock for the 20%
outstanding minority interest in Visual Worlds Development Corporation ("VWD")
owned by persons other than Visual. VWD was an 80% owned subsidiary of Visual
prior to the acquisition. Visual and its subsidiaries are engaged in the
development and marketing of 3-D graphics software and Micrografx intends to
continue the business of Visual. Micrografx issued approximately 0.36547
shares of common stock for each outstanding share of common stock of Visual,
including the VWD shares, issuing a total of approximately 882,536 shares of
common stock of Micrografx. The acquisition of Visual will be accounted for as
a pooling of interests. The terms of the Acquisition were derived through
arm's length negotiations between the parties.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
a. Financial Statements of Business Acquired - Visual Software, Inc.
Visuals Software's Financial Statements are incorporated by reference
to the Company's Registration Statement on Form S-8, file number
333-03427, dated May 10, 1996.
b. Pro Forma Financial Information - Micrografx, Inc. and Visual Software,
Inc.
Pro Forma Condensed Consolidated Balance Sheets (Unaudited) - March 31,
1996
Pro Forma Condensed Consolidated Statements of Operations (Unaudited) -
For the Years Ended June 30, 1993, 1994 and 1995 and Nine Months
Ended March 31, 1996
2
<PAGE> 3
MICROGRAFX, INC.
c. Exhibits
2. Agreement and Plan of Merger with Visual Software, Inc.
dated as of February 27, 1996 (the exhibits and
schedules listed therein have been omitted but will be
provided to the Commission upon request) (incorporated
by reference to the Company's Current Report on Form
8-K, dated April 2, 1996).
28. Press Releases dated February 27 and April 2, 1996
(incorporated by reference to the Company's Current
Report on Form 8-K, dated April 2, 1996).
3
<PAGE> 4
MICROGRAFX, INC.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MICROGRAFX, INC.
Date: May 28, 1996 By /s/ J. Paul Grayson
-----------------------------------
J. Paul Grayson
Chairman of the Board of Directors
and Chief Executive Officer
Date: May 28, 1996 By /s/ Gregory A. Peters
-----------------------------------
Gregory A. Peters
Chief Financial Officer
and Treasurer
4
<PAGE> 5
MICROGRAFX, INC. AND VISUAL SOFTWARE, INC.
PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The accompanying unaudited pro forma condensed consolidated financial
statements give retroactive effect to the merger of Micrografx, Inc. and Visual
Software, Inc. on April 2, 1996, which has been accounted for as a pooling of
interests. The accompanying pro forma condensed consolidated financial
statements reflect the financial position and results of operations assuming
that Micrografx and Visual have operated as a combined entity since inception.
The following pro forma information is presented:
Pro Forma Condensed Consolidated Balance Sheet (unaudited) - March 31,
1996
Pro Forma Condensed Consolidatd Statements of Operations (unaudited) -
For the Years Ended June 30, 1993, 1994 and 1995 and Nine Months Ended
March 31, 1996
These unaudited pro forma condensed consolidated statements should be read in
conjunction with respective financial statements and notes therto of Micografx
and Visual Software previously filed with the Securities and Exchange
Commission.
The pro forma information is based on the historical financial statements of
Micrografx and Visual. Transactions between Micrografx and Visual for the
periods presented which required pro forma adjustments are noted below:
(a) Micrografx and Visual entered into a license agreement dated August 29,
1995, whereby Instant 3D, a product developed by Visual, would be bundled
within Micrografx's ABC Graphics Suite. The resulting royalty revenue,
royalty expense, deferred revenue, and prepaid royalty amounts have been
eliminated as pro forma adjustments in the financial statements for the
nine months ended March 31, 1996.
(b) Visual has placed a 100% valuation allowance against its deferred tax asset
as the future utilization of net operating loss carryforwards is
uncertain. As a result of the merger of Micrografx and Visual, it is more
likely than not that Micrografx will be able to utilize Visual's fiscal
1996 loss in its consolidated return. Accordingly, a pro forma adjustment
to record a tax benefit and deferred income taxes has been made.
(c) Visual's common stock has no par value. As a result of the merger, a par
value of $0.01 per share has been assigned to Visual common stock.
Accordingly, common stock and additional capital have been adjusted.
The pro forma condensed consolidated financial statements do not necessarily
reflect the results that would have occurred if the merger had actually taken
place on the assumed dates or what may be achieved in the future.
<PAGE> 6
MICROGRAFX, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1993
(unaudited, in thousands, except per share amounts)
<TABLE>
<CAPTION>
PRO FORMA
MICROGRAFX VISUAL COMBINED ADJUSTMENTS PRO FORMA
---------- ------ -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Net revenues $ 55,865 $ 612 $ 56,477 $ - $ 56,477
Cost of revenues 14,092 163 14,255 - 14,255
-------- ------- -------- ------- --------
Gross profit 41,773 449 42,222 - 42,222
Operating expenses:
Sales and marketing 31,717 440 32,157 - 32,157
General and administrative 7,665 406 8,071 - 8,071
Research and development 4,631 294 4,925 - 4,925
Restructuring and unusual 1,396 - 1,396 1,396
-------- ------- -------- ------- --------
Total operating expenses 45,409 1,140 46,549 - 46,549
-------- ------- -------- ------- --------
Loss from operations (3,636) (691) (4,327) - (4,327)
Interest income, net (359) - (359) - (359)
Other (income) expense net 576 (11) 565 - 565
-------- ------- -------- ------- --------
Non-operating (income) expense 217 (11) 206 - 206
-------- ------- -------- ------- --------
Loss before income taxes (3,853) (680) (4,533) - (4,533)
Income taxes (1,061) - (1,061) - (1,061)
-------- ------- -------- ------- --------
Net loss $ (2,792) $ (680) $ (3,472) $ - $ (3,472)
======== ======= ======== ======= ========
Loss per share $ (0.33) $ (2.32) $ (0.40) N/A $ (0.40)
======== ======= ======== ======= ========
Shares used in computing
Loss per share 8,462 293 8,754 N/A 8,754
======== ======= ======== ======= ========
</TABLE>
<PAGE> 7
MICROGRAFX, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1994
(unaudited, in thousands, except per share amounts)
<TABLE>
<CAPTION>
PRO FORMA
MICROGRAFX VISUAL COMBINED ADJUSTMENTS PRO FORMA
---------- ------ -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Net revenues $ 60,732 $ 773 $ 61,505 $ - $ 61,505
Cost of revenues 14,797 229 15,026 - 15,026
-------- -------- --------- ------- ---------
Gross profit 45,935 544 46,479 - 46,479
Operating expenses:
Sales and marketing 32,625 464 33,089 - 33,089
General and administrative 8,639 508 9,147 - 9,147
Research and development 6,280 505 6,785 - 6,785
Restructuring and unusual 3,813 - 3,813 3,813
-------- -------- --------- ------- ---------
Total operating expenses 51,357 1,477 52,834 - 52,834
-------- -------- --------- ------- ---------
Loss from operations (5,422) (933) (6,355) - (6,355)
Interest (income) expense, net (422) 10 (412) - (412)
Other expense net 955 8 963 - 963
-------- -------- --------- ------- ---------
Non-operating expense 533 18 551 - 551
-------- -------- --------- ------- ---------
Loss before income taxes (5,955) (951) (6,906) - (6,906)
Income taxes (1,139) 1 (1,138) - (1,138)
-------- -------- --------- ------- ---------
Net loss $ (4,816) $ (952) $ (5,768) $ - $ (5,768)
======== ======== ========= ======= =========
Loss per share $ (0.56) $ (2.83) $ (0.64) N/A $ (0.64)
======== ======== ========= ======= =========
Shares used in computing
Loss per share 8,650 336 8,986 N/A 8,986
======== ======== ========= ======= =========
</TABLE>
<PAGE> 8
MICROGRAFX, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1995
(unaudited, in thousands, except per share amounts)
<TABLE>
<CAPTION>
PRO FORMA
MICROGRAFX VISUAL COMBINED ADJUSTMENTS PRO FORMA
---------- ------ -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Net revenues $ 60,444 $ 3,901 $ 64,345 $ - $ 64,345
Cost of revenues 15,099 1,049 16,148 - 16,148
-------- ------- -------- ----- --------
Gross profit 45,345 2,852 48,197 - 48,197
Operating expenses:
Sales and marketing 32,145 2,558 34,703 - 34,703
General and administrative 6,998 609 7,607 - 7,607
Research and development 4,594 764 5,358 - 5,358
-------- ------- -------- ----- --------
Total operating expenses 43,737 3,931 47,668 - 47,668
-------- ------- -------- ----- --------
Income (loss) from operations 1,608 (1,079) 529 - 529
Interest (income) expense, net (668) 17 (651) - (651)
Other income, net (264) (13) (277) - (277)
-------- ------- -------- ----- --------
Non-operating (income) expense (932) 4 (928) - (928)
-------- ------- -------- ----- --------
Income (loss) before income taxes 2,540 (1,083) 1,457 - 1,457
Income taxes 762 0 762 - 762
-------- ------- -------- ----- --------
Net income (loss) $ 1,778 $(1,083) $ 695 $ - $ 695
======== ======= ======== ===== ========
Income per share $ 0.20 $ (1.66) $ 0.07 N/A $ 0.07
======== ======= ======== ===== ========
Shares used in computing
income (loss) per share 8,826 654 9,480 N/A 9,480
======== ======= ======== ===== ========
</TABLE>
<PAGE> 9
MICROGRAFX, INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 1996
(unaudited, in thousands)
<TABLE>
<CAPTION>
PRO FORMA
MICROGRAFX VISUAL COMBINED ADJUSTMENTS PRO FORMA
---------- ------ -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 12,368 $ 59 $ 12,427 $ - $ 12,427
Short-term investments 5,913 - 5,913 - 5,913
Accounts receivable, net 11,611 229 11,840 - 11,840
Inventories 1,113 383 1,496 - 1,496
Deferred income taxes 672 - 672 217 (b) 889
Prepaid expenses and other current assets 2,170 146 2,316 (269) (a) 2,047
-------- -------- -------- ------- --------
Total current assets 33,847 817 34,664 (52) 34,612
Property and equipment, net 3,228 324 3,552 - 3,552
Capitalized software development costs, net 3,458 - 3,458 - 3,458
Acquired product rights, net 1,867 158 2,025 - 2,025
Other assets 186 35 221 - 221
-------- -------- -------- ------- --------
Total assets $ 42,586 $ 1,334 $ 43,920 $ (52) $ 43,868
======== ======== ======== ======= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,710 $ 1,503 $ 5,213 $ - $ 5,213
Accrued liabilities and other 5,415 686 6,101 (269) (a) 5,832
Income taxes payable 1,980 - 1,980 (685) (b) 1,295
Notes payable, current portion - 995 995 - 995
Notes payable to related parties, current - 996 996 - 996
-------- -------- -------- ------- --------
Total current liabilities 11,105 4,180 15,285 (954) 14,331
Noncurrent deferred income taxes and other 896 - 896 78 (b) 974
Shareholders' equity:
Preferred stock - - - - -
Common stock 96 3,599 3,695 (3,591) (c) 104
Additional capital 23,046 - 23,046 3,591 (c) 26,637
Retained earnings 11,327 (6,445) 4,882 824 (b) 5,706
Cumulative translation adjustment (748) (748) - (748)
Less treasury stock (3,136) (3,136) - (3,136)
-------- -------- -------- ------- --------
Total shareholders' equity (deficit) 30,585 (2,846) 27,739 824 28,563
-------- -------- -------- ------- --------
Total liabilities and shareholders' equity $ 42,586 $ 1,334 $ 43,920 $ (52) $ 43,868
======== ======== ======== ======= ========
</TABLE>
<PAGE> 10
MICROGRAFX, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED MARCH 31, 1996
(unaudited, in thousands, except per share amounts)
<TABLE>
<CAPTION>
PRO FORMA
MICROGRAFX VISUAL COMBINED ADJUSTMENTS PRO FORMA
---------- ------ -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Net revenues $ 52,747 $ 3,542 $ 56,289 $ (113)(a) $ 56,176
Cost of revenues 12,472 1,012 13,484 (113)(a) 13,371
-------- -------- -------- ------ --------
Gross profit 40,275 2,530 42,805 - 42,805
Operating expenses:
Sales and marketing 24,270 2,811 27,081 - 27,081
General and administrative 5,590 1,150 6,740 - 6,740
Research and development 4,587 1,244 5,831 - 5,831
-------- -------- -------- ------ --------
Total operating expenses 34,447 5,205 39,652 - 39,652
-------- -------- -------- ------ --------
Income (loss) from operations 5,828 (2,675) 3,153 - 3,153
Interest income, net (654) - (654) - (654)
Other expense net 689 72 761 - 761
-------- -------- -------- ------ --------
Non-operating expense 35 72 107 - 107
-------- -------- -------- ------ --------
Income (loss) before income taxes 5,793 (2,747) 3,046 - 3,046
Income taxes 1,738 - 1,738 (824)(b) 914
-------- -------- -------- ------ --------
Net income (loss) $ 4,055 $ (2,747) $ 1,308 $ 824 $ 2,132
======== ======== ======== ====== ========
Income (loss) per share $ 0.44 $ (3.44) $ 0.13 N/A $ 0.21
======== ======== ======== ====== ========
Shares used in computing
income (loss) per share 9,234 798 10,032 N/A 10,032
======== ======== ======== ====== ========
</TABLE>
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