SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
(Rule 13d-102)
Under the Securities Exchange Act of 1934
(Amendment No. )*
PhotoWorks, Inc.
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(Name of Issuer)
Common Stock, $.01 par value
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(Title of Class of Securities)
812572105
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(CUSIP Number)
November 18, 1999
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(Date of Event which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
(1) 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 the disclosures provided in a prior cover page.
The information required in 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 (the "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).
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CUSIP No. 812572105 13G PAGE 2 OF 8 PAGES
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1 NAMES OF REPORTING PERSONS:
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Sawtooth Partners, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions) (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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5 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 933,040
EACH --------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
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8 SHARED DISPOSITIVE POWER
933,040
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
933,040
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10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
0.6%
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12 TYPE OF REPORTING PERSON
PN
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CUSIP No. 812572105 13G PAGE 3 OF 8 PAGES
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1 NAMES OF REPORTING PERSONS:
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Sawtooth Capital Management, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions) (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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5 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,095,540
EACH --------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
--------------------------------------------------------
8 SHARED DISPOSITIVE POWER
1,095,540
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,095,540
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10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
6.7%
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12 TYPE OF REPORTING PERSON
PN, IA
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CUSIP No. 812572105 13G PAGE 4 OF 8 PAGES
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1 NAMES OF REPORTING PERSONS:
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Sawtooth Capital Management, Inc.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions) (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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5 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,157,540
EACH --------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
--------------------------------------------------------
8 SHARED DISPOSITIVE POWER
1,157,540
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,157,540
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10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
7.0%
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12 TYPE OF REPORTING PERSON
CO
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CUSIP No. 812572105 13G PAGE 5 OF 8 PAGES
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1 NAMES OF REPORTING PERSONS:
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Bartley Boyd Blout
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions) (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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5 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,157,540
EACH --------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
--------------------------------------------------------
8 SHARED DISPOSITIVE POWER
1,157,540
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,157,540
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10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
7.0%
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12 TYPE OF REPORTING PERSON
IN
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CUSIP No. 812572105 13G PAGE 6 OF 8 PAGES
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Item 1(a). Name of Issuer.
PhotoWorks, Inc.
Item 1(b). Address of Issuer's Principal Executive Offices.
1260 16th Avenue West, Seattle, WA 98119
Item 2(a). Names of Persons Filing. This statement is being filed by:
a. Sawtooth Capital Management, L.P. ("SCMLP");
b. Sawtooth Capital Management, Inc. ("SCMI");
c. Sawtooth Partners, L.P. ("SPLP"); and
d. Bartley B. Blout ("Mr. Blout");
each a "Reporting Person" and together the
"Reporting Persons".
Item 2(b). Address of Principal Business Office or, if none, Residence.
THE ADDRESS OF THE PRINCIPAL BUSINESS AND THE PRINCIPAL
OFFICE OF THE REPORTING PERSONS IS 1801 CENTURY PARK
EAST, SUITE 460, LOS ANGELES, CA 90067.
Item 2(c). Citizenship.
See Item 4 of the cover sheet for each Reporting Person.
Item 2(d). Title of Class of Securities.
Common Stock, par value $ 0.01 per share.
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CUSIP No. 812572105 13G PAGE 7 OF 8 PAGES
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Item 2(e). CUSIP Number. 812572105
Item 3. N/A
If this statement is filed pursuant to ss.ss.240.13d-1(b) or
240.13d-2(b) or (c), check whether the person filing is a:
(a) [ ] Broker or dealer registered under section 15 of the
Act (15 U.S.C. 78o).
(b) [ ] Bank as defined in section 3(a)(6) of the Act (15
U.S.C. 78c).
(c) [ ] Insurance company as defined in section 3(a)(19) of
the Act (15 U.S.C. 78c).
(d) [ ] Investment company registered under section 8 of the
Investment Company Act of 1940 (15 U.S.C. 80a-8).
(e) [ ] An investment adviser in accordance with
ss.240.13d-1(b)(1)(ii)(E);
(f) [ ] An employee benefit plan or endowment fund in
accordance with ss.240.13d-1(b)(1)(ii)(F);
(g) [ ] A parent holding company or control person in
accordance with ss.240.13d-1(b)(1)(ii)(G);
(h) [ ] A savings association as defined in Section 3(b) of
the Federal Deposit Insurance Act (12 U.S.C. 1813);
(i) [ ] A church plan that is excluded from the definition of
an investment company under section 3(c)(14) of the Investment Company Act of
1940 (15 U.S.C. 80a-3);
(j) [ ] Group, in accordance with ss.240.13d-1(b)(1)(ii)(J).
If this statement is filed pursuant to ss.240.13d-1(c), check
this box [X].
Item 4. Ownership.
See Items 5-9 and 11 on the cover sheet for each
Reporting Person.
Item 5. Ownership of Five Percent or Less of a Class.
Inapplicable.
Item 6. Ownership of More than Five Percent on Behalf of Another
Person.
SCMLP is a registered investment adviser whose clients,
including SPLP, have the right to receive or the power to
direct the receipt of dividends from, or the proceeds
from the sale of, the common stock of the Issuer. No
individual client, other than SPLP, holds more than 5% of
the common stock of the Issuer. SCMLP is the sole general
partner of SPLP. SCMI is the sole general partner of
SCMLP. Mr. Blout is the president and the controlling
shareholder of SCMI.
Item 7. Identification and Classification of the Subsidiary Which
Acquired the Security Being Reported on By the Parent Holding
Company.
Inapplicable.
Item 8. Identification and Classification of Members of the Group.
See Items 2(a) and 6 of this Schedule.
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CUSIP No. 812572105 13G PAGE 8 OF 8 PAGES
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Item 9. Notice of Dissolution of Group.
Inapplicable.
Item 10. Certification.
By signing below I certify that, to the best of my knowledge
and belief, the securities referred to above were not acquired and are not held
for the purpose of or with the effect of changing or influencing the control of
the issuer of the securities and were not acquired and are not held in
connection with or as a participant in any transaction having that purpose or
effect.
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.
Date: February 23, 2000
SAWTOOTH CAPITAL MANAGEMENT, L.P.
By: Sawtooth Capital Management, Inc.
General Partner
/s/ Bartley B. Blout
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By: Bartley B. Blout
President
SAWTOOTH PARTNERS, L.P.
By: Sawtooth Capital Management, L.P.
General Partner
By: Sawtooth Capital Management, Inc.
General Partner
/s/ Bartley B. Blout
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By: Bartley B. Blout
President
/s/ Bartley B. Blout
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Bartley B. Blout
