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As filed with the Securities and Exchange Commission on December 3, 1999.
Registration No. 333-92073
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________
FORM S-3
REGISTRATION STATEMENT
Under
THE SECURITIES ACT OF 1933
______________________
STRUCTURAL DYNAMICS RESEARCH CORPORATION
(Exact name of registrant as specified in its charter)
Ohio
(State or other jurisdiction of incorporation or organization)
2000 Eastman Drive, Milford, Ohio 45150 (513) 576-2400
(Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)
31-0733928
(I.R.S. Employer Identification No.)
________________
John A. Mongelluzzo
Structural Dynamics Research Corporation
2000 Eastman Drive
Milford, Ohio 45150
(513) 576-2401
Fax: (513) 576-2125
(Name, address, including zip code, and telephone number, including area code, of agent for service)
_________________
Copy to:
Charles F. Hertlein, Jr.
Dinsmore & Shohl LLP
1900 Chemed Center
255 East Fifth Street
Cincinnati, Ohio 45202
(513) 977-8315
Fax: (513) 977-8141
Approximate date of commencement of proposed sale to the public;
As soon as practicable after this Registration Statement becomes effective.
_________________
If the only securities being registered on this form are being offered pursuant to dividend or
interest reinvestment plans, please check the following box.
If any of the securities being registered on this form are to be offered on a delayed or continuous
basis pursuant to Rule 415 under the Securities Act of 1933, other than the securities offered only
in connection with dividend or interest reinvestment plans, check the following box.
If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under
the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.
If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act,
check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering.
If delivery of the prospectus is expected to be made pursuant to Rule 434, please check the
following box.
CALCULATION OF REGISTRATION FEE
Title of Each
Class of Securities
to be
Registered |
Amount to be
Registered(1) |
Proposed
Maximum Offering Price Per Share |
Proposed
Maximum Aggregate Offering Price |
Amount of
Registration Fee |
Common Stock, $.001 par value | 466,654 | $10.65625(2) | $4,972,781.69 | $1,312.81 |
(1) Also includes an indeterminate number of shares of Common Stock that may become
issuable to prevent dilution resulting from stock splits, stock dividends and conversion price or
exercise price adjustments, which are included pursuant to Rule 416 under the Securities Act of
1933, as amended.
(2) Estimated pursuant to Rule 457(g) solely for the purpose of calculating the amount of the
registration fee.
_______________
The registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.
_________________________________________________________________________________________________
PROSPECTUS
466,654 Shares
STRUCTURAL DYNAMICS RESEARCH CORPORATION
Common Stock
_______________
The shareholders of Structural Dynamics Research Corporation listed in this prospectus are
offering their shares of common stock for sale to the public at prevailing market prices by means
of this prospectus. Structural Dynamics Research Corporation itself is not offering any shares of
stock for sale and will not receive any proceeds from this offering. The selling shareholders are
all former shareholders of TD Technologies, Inc. who received their stock through the merger of
TD Technologies into Structural Dynamics Research Corporation.
__________
These securities have not been approved or disapproved by the Securities and Exchange Commission or any state securities commission nor has the Securities and Exchange Commission or any state securities commission passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.
____________
The date of this prospectus is December 3, 1999
TABLE OF CONTENTS
STRUCTURAL DYNAMICS RESEARCH CORPORATION 1
RISK FACTORS 1
THE OFFERING 3
SELLING SHAREHOLDERS 3
PLAN OF DISTRIBUTION 5
LEGAL MATTERS 5
EXPERTS 6
WHERE TO FIND MORE INFORMATION 6
FORWARD-LOOKING STATEMENTS 6
STRUCTURAL DYNAMICS RESEARCH CORPORATION
Structural Dynamics Research Corporation was formed in 1967 as an engineering services
business and has become a leading supplier of :
- mechanical design automation software
- product data management software
- related services
Our mechanical design automation software product, I-DEAS Master Series (trademark),is a
world-class, integrated CAD/CAM/CAE solution which allows manufacturers to optimize
product performance and reduce costs while streamlining the product development process. Our
product data management software product, the Metaphase Enterprise suite, offers
comprehensive solutions for:
- electronic document management
- configuration management
- process/work flow
Our principal address is 2000 Eastman Drive, Milford, Ohio 45150. Our main telephone number at that address is (513) 576-2400.
RISK FACTORS
The highly competitive nature of our industry may limit our business in the future.
Our business is the development and marketing of software products for computer-aided
engineering, computer-aided design, computer-aided manufacturing, and product data
management. The market for these types of software products is intensely competitive. We have
a number of significant competitors with substantial technical, marketing and financial resources.
Competitive pressures from them could adversely affect our business in the future.
Our business could be negatively affected if we are unable to keep up with the rapid pace of
technological change which characterizes our industry.
Our industry is characterized by rapid technological advances in both hardware and software.
To maintain our competitive position, we must continually enhance our existing products and
pursue the development and introduction of new products. This requires us to remain on the
forefront of a number of technologies by making substantial investments in research and
development. If we are for some reason unable to continue making such investments, or if our
efforts are unsuccessful, our business could be negatively affected.
Disruptions or instability in the international economy could negatively affect our business.
A substantial portion of our revenues is derived from sales to customers in Europe and the Asia
Pacific region. There are risks in the operation of any business outside the United States, such as:
- exposure to foreign currency fluctuations and devaluation caused by either general economic
forces or government intervention
- restrictions imposed by domestic export laws and regulations and foreign import laws and regulations
- import/export quotas and taxes or tariffs
- the inherent instability associated with political and economic events beyond our control
- the general difficulty of administering a business organization at long distances across national borders
If we are unable to continue to attract and retain management and technical personnel, our
business could be negatively affected.
Competition for the services of skilled software developers, engineers, sales and marketing
personnel, and management personnel is intense in our industry. Our ability to continue the
development of commercially-viable products and to maintain our competitive position in our
market depends upon our ability to continue attracting and thereafter retaining such employees.
If we are unable to do so, our business will be negatively affected.
We may experience difficulties in the integration of acquired businesses into our existing
business which could negatively affect our results of operations.
Our business strategy includes growth through strategic acquisitions. We have acquired
businesses at the rate of one or two per year over the past few years and this trend may continue.
Our acquisition strategy will present challenges for management, including:
- requiring management attention to be focused on integration instead of on our core business
- possible adverse effects on operating performance resulting from increased goodwill
amortization and unanticipated liabilities or contingencies
- increased interest cost
- the issuance of additional securities
Any failure or inability to successfully implement these and other factors may have a material
adverse effect on our business, financial condition and results of operations. There can be no
assurance that we will be able to successfully integrate and manage the businesses we acquire. If
management is unable to successfully implement our growth strategy or manage our growth
effectively, our business, financial condition and results of operations could be materially
adversely affected.
The year 2000 could negatively affect the computer programs and systems upon which we depend.
We anticipate that all of our software products will be year 2000 compliant before the end of
1999. However, we also rely on computer applications to manage and monitor our accounting,
sales, development and administrative functions. In addition, our suppliers and service providers
are reliant upon computer applications, some of which contain technology which may fail as a
result of the upcoming change in century. Such failures could affect the interactions of these third
parties with us. While we do believe our computer systems, applications and embedded
technologies currently in use will not be materially adversely affected by the upcoming change in
century, we or our technology may be adversely affected by the change in century. Failure of our
software, hardware or embedded technology or that of our customers, suppliers or service
providers could have a material adverse impact on our business, financial condition and results of
operations.
We do not plan to pay any dividends in the near future.
We have not declared or paid, and for the near future we do not anticipate declaring or paying,
dividends on our common stock.
THE OFFERING
In September 1999, we acquired TD Technologies, Inc. by means of a merger which resulted in
the issuance of 466,654 restricted shares of Structural Dynamics stock to the former shareholders
of TD Technologies who are the selling shareholders in this offering. Of the total number of
shares offered in this offering, 399,154 shares have been issued to the selling shareholders and
67,500 are being retained by Structural Dynamics to satisfy potential claims for indemnification
against the selling shareholders. As part of the merger transaction, the selling shareholders
negotiated for and received a registration rights agreement which requires us to file a registration
statement with the Securities and Exchange Commission which would be available for the selling
shareholders to use in case they decide to sell their restricted stock in open market sales.
We have not retained an underwriting firm to handle sales of common stock by the selling
shareholders. We expect the selling shareholders to work directly with broker/dealer firms of
their own choosing to arrange for sales of their common stock. We also expect that the
broker/dealers who arrange for sales of common stock will be compensated by commissions at
whatever rates they may agree upon with the selling shareholders. We will not receive any
proceeds from the selling shareholders' sales of common stock under this prospectus, and we are
not responsible for compensating their brokers.
SELLING SHAREHOLDERS
The following table sets forth information as of October 29, 1999 with respect to beneficial
ownership of common stock by the selling shareholders and has been provided to us by the
selling shareholders. Persons named in this table have sole voting and investment power with
respect to all shares shown as beneficially owned by them, subject to community property laws,
where applicable.
Shares Beneficially
Owned Prior to Offering (1) |
Shares Beneficially
Owned After the Offering | ||||
Selling Shareholder |
Number |
Percent |
Shares
Offered |
Number |
Percent |
Bridget Harwell Trusts | 252,284 | * | 252,284 | -0- | -0- |
Marshall Belden Trust | 151,863 | * | 151,863 | -0- | -0- |
Greg Ordy | 16,629 | * | 16,629 | -0- | -0- |
Ed Allbritton Trust | 4,122 | * | 4,122 | -0- | -0- |
Sam Bertic | 543 | * | 543 | -0- | -0- |
Ron Brittian & Trusts | 3,331 | * | 3,331 | -0- | -0- |
Henry Burks | 2,752 | * | 2,752 | -0- | -0- |
Don Candy | 6,698 | * | 6,698 | -0- | -0- |
Michael Collins | 1,357 | * | 1,357 | -0- | -0- |
Chuck Craig | 2,638 | * | 2,638 | -0- | -0- |
Steven Goodwin | 469 | * | 469 | -0- | -0- |
Roger Hughes | 82 | * | 82 | -0- | -0- |
Kessler/LJK | 444 | * | 444 | -0- | -0- |
Jim Lacy | 5,913 | * | 5,913 | -0- | -0- |
Scott Mosher | 229 | * | 229 | -0- | -0- |
Tom Murach | 2,548 | * | 2,548 | -0- | -0- |
John Nallon | 2,035 | * | 2,035 | -0- | -0- |
Kathleen Roell | 1,225 | * | 1,225 | -0- | -0- |
Mark Sampson | 1,797 | * | 1,797 | -0- | -0- |
Brian Sandridge | 1,809 | * | 1,809 | -0- | -0- |
Sam Smith | 4,032 | * | 4,032 | -0- | -0- |
Krishnan Srinivasan | 1,703 | * | 1,703 | -0- | -0- |
T. J. Theodore | 1,166 | * | 1,166 | -0- | -0- |
Mark Urquhart | 985 | * | 985 | -0- | -0- |
__________________
* Less than 1%
(1) Includes 67,500 shares retained by Structural Dynamics to satisfy potential claims for
indemnification against the selling shareholders.
PLAN OF DISTRIBUTION
The selling shareholders, from time to time, may sell their common stock on the Nasdaq
National Market in privately negotiated transactions or otherwise, at fixed prices that may be
changed, at market prices prevailing at the time of sale, at prices related to such market prices or
at negotiated prices. The selling shareholders may sell their common stock by one or more of
the following methods:
- trades of large blocks of our common stock assembled from several owners, in which the broker or dealer so engaged will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction
- purchases by a broker or dealer as principal and resale by such broker or dealer for its account pursuant to this prospectus
- an exchange distribution in accordance with the rules of the relevant exchange
- ordinary brokerage transactions and transactions in which the broker solicits purchasers
- privately negotiated transactions
In effecting sales, brokers and dealers engaged by the selling shareholders may arrange for other
brokers or dealers to participate. Brokers or dealers may receive commissions or discounts from
the selling shareholders in amounts to be negotiated which are not expected to exceed those
customary in the types of transactions involved. Broker-dealers may agree with the selling
shareholders to sell a specified number of such shares of common stock at a stipulated price per
share, and, to the extent such broker-dealer is unable to do so acting as agent for selling
shareholders, to purchase as principal any unsold shares of common stock at the price required to
fulfill the broker-dealer commitment to the selling shareholders. Broker-dealers who acquire
shares of common stock as principal may thereafter resell such shares of common stock from
time to time in transactions in the over-the-counter market or otherwise at prices and on terms
then prevailing at the time of sale, at prices then related to then-current market price or in
negotiated transactions and, in connection with such resales, may pay to or receive from the
purchasers of such shares of common stock commissions as described above. The selling
shareholders may also sell shares of common stock in accordance with Rule 144 under the
Securities Act, rather than under this prospectus.
The selling shareholders and any broker-dealers or agents that participate with the selling
shareholders in sales of shares of common stock may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with sales they make. In that case, any commissions
received by broker-dealers and any profit on the resale of shares of common stock purchased by
them may be deemed to be underwriting commissions or discounts under the Securities Act.
From time to time the selling shareholders may engage in the following kinds of transactions:
- short sales
- short sales against the box, which means transacting short sales even though they have an actual ownership position in the shares
- puts and calls
- transactions in other securities of Structural Dynamics
- derivatives of Structural Dynamics securities
- the sale or delivery of shares of common stock in settlement of securities loans.
LEGAL MATTERS
The validity of the shares of common stock offered hereby will be passed upon for us by our
counsel, Dinsmore & Shohl LLP, Cincinnati, Ohio. One of our directors, John E. McDowell, is
of counsel with Dinsmore & Shohl LLP.
EXPERTS
The financial statements incorporated in this Prospectus by reference to the Annual Report on
Form 10-K for the year ended December 31, 1998, have been so incorporated in reliance on the
report of PricewaterhouseCoopers LLP, independent accountants, given on the authority of said
firm as experts in auditing and accounting.
WHERE TO FIND MORE INFORMATION
Government Filings. We file annual, quarterly and special reports and other information with
the Securities and Exchange Commission. You may read and copy any documents that we file at
the SEC's public reference rooms in Washington, D.C., New York, New York and Chicago,
Illinois. Please call the SEC at 1-800-SEC-0330 for further information on the public reference
rooms. The public reference rooms impose a nominal fee for copying requested documents. Our
SEC filings are also available to you free of charge at the SEC's website at http://www.sec.gov.
Our SEC file number is 820235.
Information Incorporated by Reference. The SEC allows us to "incorporate by reference" the
information we file with them, which means that we can disclose important information to you
by referring you to those documents. The information incorporated by reference is considered to
be part of this prospectus, and information that we file later with the SEC will automatically
update and supersede previously filed information, including information included in this document.
We incorporate by reference the documents listed below and any future filings we will make
with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934
until this offering has been completed.
1. Our Annual Report on Form 10-K, which includes sections from our Annual Report to Shareholders, for the year ended December 31, 1998.
2. Our Proxy Statement dated April 1, 1999.
3. Our Quarterly Reports for the quarters ended March 31, June 30 and September 30, 1999.
You may request free copies of these filings by writing or telephoning us at the following address:
John A. Mongelluzzo
Vice President, General Counsel
and Secretary
Structural Dynamics Research Corporation
2000 Eastman Drive
Milford, Ohio 45150
Telephone: 513-576-2401
FORWARD-LOOKING STATEMENTS
This prospectus contains "forward-looking statements" that include statements regarding the
intent, belief or current expectations of Structural Dynamics Research Corporation, our directors
or our executive officers about the many factors which could affect our business, some of which
are:
- trends affecting our financial condition or results of operations
- our business and growth potential
- various risk factors
- pro forma financial data
You should be aware that these forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and that actual results may differ materially
from those projected in the forward-looking statements as a result of various factors. We have
identified several important factors that could cause these sorts of differences in the section above
entitled "Risk Factors".
PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution
The following is an itemized statement of the expenses (all except the registration fees are
estimates) in connection with the issuance of the securities being registered hereunder. All such
expenses will be borne by the Company.
SEC registration fees $1,312.81
Legal fees and expenses $3,500.00
Accounting fees and expenses $3,500.00
Miscellaneous $687.19
Total $9,000.00
Item 15. Indemnification of Directors and Officers
The Company's Code of Regulations provides that each person who is made a party or is
otherwise involved in any action, suit or proceeding, by reason of the fact that he/she is or was a
director or officer of the Company, or is or was serving at the request of the Company as a
director, officer, trustee, employee or agent or another entity, shall be indemnified and held
harmless by the Company to the fullest extent authorized by the Ohio General Corporation Law
(the "OGCL") against all expenses, liability and loss, including attorneys' fees. The OGCL
permits indemnification in non-shareholder derivative actions for expenses, judgments, fines and
settlement amounts, if the director or officer acted in good faith and in a manner he/she
reasonably believed to be in or not opposed to the best interests of the Company and with respect
to any criminal action or proceeding, had no reasonable cause to believe his/her conduct was
unlawful. In a shareholder derivative action, the OGCL permits indemnification for expenses
only if the director or officer acted in good faith and in a manner he/she reasonably believed to be
in or not opposed to the best interests of the Company, unless the director or officer has been
adjudged to be liable for negligence or misconduct in the performance of his/her duties. The
intent of the Company's Code of Regulations is to make indemnification for directors and officers
mandatory rather than permissive. In addition, the Code of Regulations requires the Company to
pay a director's or officer's expenses incurred in defending any such proceeding in advance of the
proceeding's final disposition, provided that the director or officer delivers to the Company an
undertaking to repay all advanced amounts if it is ultimately determined that he/she is not entitled
to be indemnified under Ohio law. To the extent that an officer or director is successful on the
merits in any proceeding, Ohio law mandates indemnification for expenses, including attorneys'
fees. The Code of Regulations also provides a procedure whereby a director or officer denied
indemnification may bring an action against the Company to recover the amount of his/her
indemnification claim, and the burden of proving that the director or officer did not meet the
applicable standard of conduct described in the OGCL is placed on the Company. The
Company's Code of Regulations also provides that the Company may maintain insurance, at its
expense, to protect itself and any director, officer, employee, or agent of the Company against
any expense, liability, or loss, whether or not the Company would have the power to indemnify
such person against such expense, liability or loss under the OGCL.
Item 16. Exhibits
Each of the following exhibits is filed or incorporated by reference in this Registration Statement.
Exhibit
Number Description of Exhibit
(5) and (23.1) Opinion and consent of Dinsmore & Shohl LLP, counsel to the Registrant
(23.2) Consent of PricewaterhouseCoopers LLP
(24) Powers of Attorney
________
Item 17. Undertakings
(a) Rule 415 Offering. The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are made, a post-effective amendment to
this registration statement to include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or any material change to such
information in the registration statement.
(2) That for the purpose of determining liability under the Securities Act of 1933 (the "Act"),
each such post-effective amendment shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall be deemed to
be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
(e) Request for Acceleration of Effective Date. Insofar as indemnification for liabilities arising
under the Act may be permitted to directors, officers and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the registrant has been advised that, in the
opinion of the Securities and Exchange Commission, such indemnification is against public
policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer or controlling person of the
registrant in the successful defense of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.
(f) Reliance on Rule 430A. The undersigned registrant will:
(1) For determining any liability under the Securities Act, treat the information omitted from
the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and
contained in a form of prospectus filed by the registrant under Rule 424(b)(1), or (4) or 497(h)
under the Securities Act as part of this registration statement as of the time the Commission
declared it effective.
(2) For determining any liability under the Securities Act, treat each post-effective amendment that contains a form of prospectus as a new registration statement for the securities offered in the registration statement, and that offering of the securities at that time as the initial bona fide offering of those securities.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has
reasonable grounds to believe that it meets all of the requirements for filing on a Form S-3 and
has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Milford, State of Ohio on the 30th day of November, 1999.
STRUCTURAL DYNAMICS RESEARCH CORPORATION
By: /S/ William J. Weyand
William J. Weyand
Chairman of the Board, President
and Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints John A. Mongelluzzo and Jeffrey J. Vorholt, and each of them, jointly and severally, as his true and lawful attorneys-in-fact and agents, each with full power of substitution, and each with power to act alone, to sign and execute on behalf of the undersigned any amendment or amendments to this Registration Statement on Form S-3, and to perform any acts necessary to be done in order to file such amendment with exhibits thereto and other documents in connection therewith with the Securities and Exchange Commission, and each of the undersigned does hereby ratify and confirm all that said attorneys-in-fact and agents, or their or his substitutes, shall do or cause to be done by virtue hereof.
In accordance with the requirements of the Securities Act of 1933, this Registration Statement
was signed by the following persons in the capacities and on the dates indicated.
Signature Title Date
/S/ William J. Weyand Chairman of the Board, November 30, 1999
William J. Weyand President and
Chief Executive Officer
(Principal Executive Officer)
/S/ Jeffrey J. Vorholt Vice President, November 30, 1999
Jeffrey J. Vorholt Chief Financial Officer and
Treasurer
(Principal Financial and
Accounting Officer)
/S/ William P. Conlin Director November 30, 1999
William P. Conlin
/S/ Bannus B. Hudson Director November 30, 1999
Bannus B. Hudson
/S/ John E. McDowell Director November 30, 1999
John E. McDowell
/S/ James W. Nethercott Director November 30, 1999
James W. Nethercott
/S/ Arthur B. Sims Director November 30, 1999
Arthur B. Sims
/S/ Gilbert R. Whitaker, Jr. Director November 30, 1999
Gilbert R. Whitaker, Jr.
INDEX TO EXHIBITS
Exhibit No. | Description | Page |
5 and 23.1 | Opinion of Dinsmore & Shohl LLP as to the legality of the securities being registered. | |
23.2 | Consent of PricewaterhouseCoopers LLP, independent accountants | |
24 | Power of Attorney | * |
* Contained herein on the signature page
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