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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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) April 1, 1999
National TechTeam, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 0-16284 38-2774613
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
835 Mason Street, Suite 200 Dearborn, MI 48224
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(Address of principal executive offices) (City, State) (Zip Code)
Registrant's telephone number, including area code (313) 277-2277
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(Former name of former address, if changed since last report.)
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ITEM 5. OTHER EVENTS.
On April 1, 1999, the Company issued the press release attached as Exhibit 2.1
to this Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
2.1 Press release dated on April 1, 1999 "NATIONAL TECHTEAM ANNOUNCES COST
CONTAINMENT PROGRAM"
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NATIONAL TECHTEAM, INC.
Dated: April 5, 1999 By: /s/ Jeffrey R. Pigott
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Jeffrey R. Pigott
Controller, Chief
Accounting Officer
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EXHIBIT INDEX
Exhibit No. Description
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2.1 Press Release dated 4/1/99
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[NATIONAL TECHTEAM LETTERHEAD]
NEWS RELEASE
FOR IMMEDIATE RELEASE -- APRIL 1, 1999 International Provider of
Computer Services
National TechTeam, Inc.
835 Mason Street, Suite 200
Dearborn, Michigan 48124 NASDAQ/NM - "TEAM"
CONTACT:
NATIONAL TECHTEAM, INC. NATIONAL TECHTEAM, INC.
Harry A. Lewis Steven J. Corso
President and Vice President and
Chief Executive Officer Chief Information Officer
(248) 357-2866 (248) 357-2866
NATIONAL TECHTEAM ANNOUNCES COST CONTAINMENT PROGRAM
PLAN TARGETS IMPROVING ON 1998 FINANCIAL RESULTS
DEARBORN, MICHIGAN, April 1, 1999...NATIONAL TECHTEAM INC., Nasdaq symbol
("TEAM"), today announced that it has launched a major cost containment program
that is expected to significantly reduce overhead expenses. This program is the
central part of a major initiative to streamline internal operations, and
improve processes to increase the Company's profitability.
THE COST CONTAINMENT PLAN INVOLVES THE FOLLOWING:
- - The continued integration of TechTeam's wholly owned subsidiaries'
operations into the Company. The integration of these operations will
enable TechTeam to reduce its facilities costs and reduce the duplication
of other overhead expenses.
- - The migration of a large part of our help desk/call center operations to
more cost-effective locations and increased utilization of help desk
agents.
- - The development of a Business/Financial Review Department to review
business processes in each business unit and increase economic
efficiencies. Reorganizations in Training, Technical Staffing, Purchasing
and MIS are positive affects of the department's current efforts.
- - Reallocation of nonrevenue-generating personnel to billable positions as a
result of elimination of redundancies in operations and reengineering of
operating processes.
- - Implementation and modification of new ERP global accounting and management
software system.
During 1998, TechTeam implemented a number of elements of this plan which
resulted in a decrease in Sales, General and Administrative costs as a
percentage of revenue from 17% at year end 1997 to 13.6% at year end 1998.
-more-
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[NATIONAL TECHTEAM NEWS RELEASE]
The new global ERP accounting and management software that has recently been
launched after two years of evaluation, development and testing is the
cornerstone of the Company's cost reduction containment plan. This system, along
with improved reporting processes, will be utilized to significantly reduce
overhead costs while improving operational effectiveness.
The preliminary revenue and earnings for the fourth quarter and calendar year
1998 have been revised and finalized as reported in the Company's 10K for 1998
filed March 31, 1999. For the quarter ended December 31, 1998, revenues were
$32,536,460, a 39.7% increase over the $23,297,707 reported for the fourth
quarter of 1997. The revised net loss for the quarter is $4,147,183. For the
calendar year 1998, National TechTeam had an after tax loss of $3,747,820, or
$(0.24) per share, on revenues of $116,921,194. The new ERP management system
and processes that have been put in place during 1998 are expected to allow the
Company to better manage the strong growth that TechTeam has experienced over
the past years and lead to improved financial results in 1999.
NATIONAL TECHTEAM, INC. is a leading provider of information technology
outsourcing support services to large national and multi-national corporations,
government agencies and service organizations. The Company offers its services
through three global units: (i) CORPORATE SERVICES, which provides corporations
with help desk support, technical staffing, systems integration, and computer
training programs; (ii) OEM CALL CENTER SERVICES, which provides end user
customers of its clients with inbound telephone support for their computer
products; and (iii) TECHTEAM CAPITAL GROUP, which consists primarily of leasing
computer-related hardware and integrated services to corporate customers.
National TechTeam is traded under the symbol "TEAM".
The foregoing contains forward-looking statements. The matters expressed in such
statements are subject to numerous uncertainties and risks including but not
limited to general economic conditions in the markets in which TechTeam
operates, fluctuation in demand for computer related services and products, and
current expectations of TechTeam or its management. Should one or more of those
uncertainties or risks materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described as
forward-looking statements. TechTeam does not intend to update those
forward-looking statements.
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