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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended JANUARY 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File number: 0-15810
OSICOM TECHNOLOGIES, INC.
(Exact name of Registrant as specified in charter)
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<S> <C>
NEW JERSEY 22-2367234
(State or other jurisdiction of incorporation or (IRS Employer Identification Number)
organization)
2800 28TH STREET, SUITE 100
SANTA MONICA, CALIFORNIA 90405
(Address of principal executive offices) (Zip Code)
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(310) 581-4030
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(g) of the Act:
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<S> <C>
COMMON STOCK, PAR VALUE $0.30 NASDAQ
Title of each class Name of exchange on which registered
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Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No ___
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Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S is not contained herein, and will not be contained, to the best
of Registrant's knowledge, in a definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. Yes ___ No X
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The Registrant's revenues for its most recent fiscal year were $94,949,000.
The aggregate market value of voting stock based upon the bid and ask price held
by non-affiliates of the Registrant on April 30, 1999 was $107,458,000.
Number of shares outstanding of the Registrant's only class of common stock as
of April 30, 1999 (the latest practicable date): 8,972,339.
DOCUMENTS INCORPORATED BY REFERENCE: None
This Form 10-K, future filings of the registrant, press releases of the
registrant, and oral statements made with the approval of an authorized
executive officer of the Registrant may contain forward looking statements. In
connection therewith, please see the cautionary statements and risk factors
contained in Item 1. "Business - Forward Looking Statements - Cautionary
Statement" and "Business - Risk Factors", which identify important factors which
could cause actual results to differ materially from those in any such
forward-looking statements.
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ITEM 11. EXECUTIVE COMPENSATION
The following tables set forth the annual compensation for both
individuals who served as the Company's Chief Executive Officer ("CEO") for the
fiscal year ended January 31, 1999, and for the four most highly compensated
executive officers of the Company, other than the CEO, who were serving as
executive officers at the end of our fiscal year whose salary and bonus exceeded
$100,000.
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<CAPTION>
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SUMMARY COMPENSATION TABLE
- ------------------------------------------------------------------------------------------------------------------------
All Other
Name and Principal Year Annual Compensation Long-Term Compensation Compensation
Position ($)
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Salary Bonus ($) Other Restricted Securities Long-Term
($) Annual Stock Underlying Incentive
Compen- Award(s) Options Plan
sation ($) (#) Payouts
($)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Par Chadha, Chairman, 1999 147,500 0 0 0 349,164 0 0
Chief Executive 1998 60,000 0 0 0 16,667 0 0
Ofificer 1997 0 0 0 0 16,667 0 0
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Xin Cheng, 1999 125,031 51,066 0 0 196,183 0 0
President, Director 1998 90,248 0 0 0 16,667 0 0
1997 84,110 0 0 0 16,667 0 0
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Christopher E. Sue, 1999 103,077 0 0 0 66,665 0 0
VP Finance, Secretary 1998 95,000 0 0 0 0 0 0
1997 76,297 0 0 0 8,334 0 0
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Ronald Mackey, 1999 123,126 50,000 0 0 81,153 0 0
Executive VP 1998 154,146 0 0 0 0 0 0
Technology
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Arthur Trakas, 1999 152,420 0 0 0 51,666 0 0
Executive VP 1998 154,146 0 0 0 0 0 0
Worldwide Sales
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LONG-TERM INCENTIVE PLANS
The Company has no long-term incentive plans other than the 1988 and
1997 Stock Option Plans and the 1997 Directors Stock Option Plan.
1
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OPTION GRANTS IN LAST FISCAL YEAR
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Individual Grants
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Name Number of % of Total Exercise Market Expiration Potential Realizable Value at
Securities Options or Base Price on Date Assumed Rates of Stock Price
Underlying Granted to Price Date Appreciation for Option Term (B)
Options Employees ($/Sh) (B) Granted ---------------------------------
Granted (#) in Fiscal ($/Sh) (B) 0% 5% ($) 10% ($)
Year ($)
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Par Chadha 8,334 0.57% $13.50 $12.38 9-26-2007 0 55,552 155,100
340,830 23.24% $7.03 $7.03 11-2-2008 0 1,507,111 3,819,314
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Xin Cheng 66,667 4.55% $4.78 $4.78 8-3-2008 0 200,459 508,003
129,516 8.83% $7.03 $7.03 11-2-2008 0 572,705 1,451,346
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Christopher E. 5,000 0.34% $4.78 $4.78 8-3-2008 0 15,034 38,100
Sue 5,000 0.34% $18.00 $4.78 5-3-1999 0 0 0
5,000 0.34% $30.00 $4.78 5-3-1999 0 0 0
5,000 0.34% $45.00 $4.78 5-3-1999 0 0 0
46,665 3.18% $7.03 $7.03 11-2-2008 0 206,347 522,924
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Ronald Mackey (A) 8,334 0.57% $4.78 $4.78 8-3-2008 0 25,059 63,505
8,334 0.57% $18.00 $4.78 5-3-1999 0 0 0
8,334 0.57% $30.00 $4.78 5-3-1999 0 0 0
8,334 0.57% $45.00 $4.78 5-3-1999 0 0 0
15,585 1.06% $15.94 $15.94 1-22-2000 0 25,460 52,161
46,665 2.20% $7.03 $7.03 11-2-2008 0 142,526 361,189
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Arthur Trakas 8,334 0.57% $4.78 $4.78 8-3-2008 0 25,059 63,505
8,334 0.57% $18.00 $4.78 5-3-1999 0 0 0
8,334 0.57% $30.00 $4.78 5-3-1999 0 0 0
8,334 0.57% $45.00 $4.78 5-3-1999 0 0 0
18,330 1.25% $7.03 $7.03 11-2-2008 0 81,053 205,405
=========================================================================================================================
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A) The 15,595 options expiring January 22, 2000 represent a reprice
of options originally granted on October 26, 1996 exercisable at
$26.74 in connection with Mr. Mackey's original employment with
the Company. The repricing occured on April 30, 1998 when all
employees were permited to elect to reprice their most recent
grant only to the then market price with all other terms remaining
the same; the repriced options are not exercisable until the
market price of the Company's common stock equals $30.00.
B) In accordance with Securities and Exchange Commission rules, these
columns show gains that might exist for the respective options,
assuming that the market price of the Company's common stock
appreciates from the date of the grant over the term of the option
at rates of 5% and 10%, respectively.
2
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AGGREGATED OPTION EXERCISES IN 1999 AND JANUARY 31, 1999 OPTION VALUES
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Name Shares Value Number of Securities Underlying Value of Unexercised
Acquired Realized ($) Unexercised Options at Fiscal In-the-Money Options at FY-End
on Year-End (#) ($)(A)
Exercise
(#)
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Exercisable Unexercisable Exercisable Unexercisable
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<S> <C> <C> <C> <C> <C> <C>
Par Chadha - - 192,503 340,830 886,525 3,099,423
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Xin Cheng - - 53,818 196,183 125,292 1,934,040
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Christopher E. Sue - - 8,334 46,665 0 424,360
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Ronald Mackey - - 0 81,153 0 293,110
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Arthur Trakas - - 23,335 51,666 37,502 261,227
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A) Options are "in-the-money" if, on January 31, 1999, the market price of
the Common Stock ($16.125) exceeded the exercise price of such options.
The value of such options is calculated by determining the difference
between the aggregate market price of the Common Stock covered by such
options on January 31, 1999, and the aggregate exercise price of such
options.
EMPLOYMENT AGREEMENTS
We have no employment contracts with our executives officers.
COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT
The Securities Exchange Act of 1934 requires the Company's directors
and executive officers and person who own more than ten percent of a registered
class of the Company's equity securities to file reports of beneficial ownership
and changes in beneficial ownership with the Securities and Exchange Commission.
To the knowledge of the Company, all filing requirements under Section 16(a) in
respect of the Company were complied within the year ended January 31, 1999.
3
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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information as of April 30,
1999, regarding the ownership of the Common Stock by (i) each Director of the
Company; (ii) each of the executive officers named in the Summary Compensation
Table, above; (iii) each person known to the Company to beneficially own 5% or
more of Common Stock; and (iv) all Directors and executive officers of the
Company as a group. Except as indicated, all persons named as beneficial owners
of Common Stock have sole voting and investment power with respect to the shares
indicated as beneficially owned by them.
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Name of Beneficial Owner (A) Common Stock
-----------------------------------
Number of Shares Percentage of
Outstanding
(I)
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<S> <C> <C>
Par Chadha
2800 28th Street, Suite 100 603,843 (B) 6.5%
Santa Monica, CA 90405
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Leonard Hecht
2800 28th Street, Suite 100 88,334 (C) 1.0%
Santa Monica, CA 90405
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Humbert B. Powell III
2800 28th Street, Suite 100 91,669 (D) 1.1%
Santa Monica, CA 90405
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Renn Zaphiropoulos
2800 28th Street, Suite 100 26,668 (E) *
Santa Monica, CA 90405
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Xin Cheng
2800 28th Street, Suite 100 54,552 (F) *
Santa Monica, CA 90405
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Christopher E. Sue
2800 28th Street, Suite 100 8,516 (G) *
Santa Monica, CA 90405
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Ronald Mackey
2800 28th Street, Suite 100 38,349 *
Santa Monica, CA 90405
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Arthur Trakas
2800 28th Street, Suite 100 28,097 (H) *
Santa Monica, CA 90405
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Heritage Capital Management, Inc.
706 Giddings Avenue 552,737 6.2%
Annapolis, MD 21401
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All Directors and executive officers as a
group 946,743 10.3%
==================================================================================
</TABLE>
* Less than 1%
4
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A) All information with respect to beneficial ownership of the shares
is based upon filings made by the respective beneficial owners
with the Securities and Exchange Commission or information
provided by such beneficial owners to the Company.
B) Includes shares and options held in the name of R II Partners,
Inc., RT Investments, Inc., and Rand Research Corporation. Mr.
Chadha owns, directly and indirectly, 100% of the outstanding
capital stock of R II Partners, Inc., and RT Investments, Inc. Mr.
Chadha holds exercisable options to acquire 192,503 shares of
common stock at prices ranging from $4.50 to $23.76 per share
(market price on the date granted).
Mr. Chadha disclaims beneficial ownership of the 9,636 shares and
exercisable options to acquire 66,668 shares held by Ms. Chadha
as well as exercisable options to acquire 16,667 shares held
beneficially by his children.
C) Includes shares and options held in the name of Chrysalis Capital
Group. Mr. Hecht ownes, directly and indirectly, 100% of the
outstanding capital stock of Chrysalis Capital Group. Mr. Hecht
holds exercisable options to acquire 65,003 shares of common stock
at prices ranging from $3.00 to $28.46 per share (market price on
the date granted).
D) Includes shares, options and warrants held in the name of HMS
Advisors, LLC. Mr. Powell owns, directly and indirectly, 50% of
the outstanding capital stock of HMS Advisors, LLC. Mr Powell
holds exercisable options to acquire 66,669 shares of common stock
at prices ranging from $7.69 to $24.38 (market price on the date
granted).
E) Includes exercisable options held by Mr. Zaphiropoulos to acquire
26,668 shares of common stock at prices ranging from $7.04 to
$11.16 (market price on the date granted).
F) Includes exercisable options held by Mr. Cheng to acquire 53,818
shares of common stock at prices ranging from $3.00 to $23.76 per
share (market price on the date granted).
G) Includes exercisable options held by Mr. Sue to acquire 8,334
shares of common stock at a price of $20.63 per share (market
price on the date granted).
H) Includes exercisable options held by Mr. Trakas to acquire 23,335
shares of common stock at a price of $3.50 per share (market price
on the date granted).
I) For each beneficial owner, the "Percentage of Outstanding" equals
each owner's actual holdings of shares plus shares represented by
unexercised options and warrants held, divided by total shares
outstanding of the Company at April 30, 1999, of 8,972,339, plus
the above-referenced unexercised options and warrants of the
referenced holder only. In other words, individual percentages of
the listed holders will not add to the group total because the
calculations are made separately for each holder.
5
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Company has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
OSICOM TECHNOLOGIES, INC.
By: /s/ Christopher E. Sue Date: June 1, 1999
------------------------------------
Christopher E. Sue
Vice President Finance
Principal Accounting Officer
Secretary
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Company and in
the capacities and on the dates indicated.
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<S> <C>
By: /s/ Par Chadha Date: June 1, 1999
---------------------------------
Par Chadha
Chairman and Director
Chief Executive Officer
By: /s/ Xin Cheng Date: June 1, 1999
---------------------------------
Xin Cheng
Director
President
By: /s/ Humbert B. Powell III Date: June 1, 1999
---------------------------------
Humbert B. Powell III
Director
By: /s/ Leonard Hecht Date: June 1, 1999
---------------------------------
Leonard Hecht
Director
By: /s/ Renn Zaphiropoulos Date: June 1, 1999
---------------------------------
Renn Zaphiropoulos
Director
</TABLE>
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