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UNITED STATES
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): July 6, 1998
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CONNECT, Inc.
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(Exact name of registrant as specified in charter)
Delaware
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(State or other jurisdiction of incorporation)
000-20873 943036611
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(Commission File Number) (IRS Employer Identification No.)
515 Ellis Street, Mountain View, California 94043
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (650) 254-4000
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N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
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On July 6, 1998, CONNECT, Inc., a Delaware corporation (the "Company")
announced its results for the quarter ended June 30, 1998, as well as certain
other matters. Further details regarding this announcement are contained in the
Company's press release dated July 6, 1998 attached as an exhibit hereto and
incorporated by reference herein.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits.
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Exhibit 99.1 CONNECT, Inc. Press Release dated July 6, 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
CONNECT, Inc.
(Registrant)
Dated: July 7, 1998 By: /s/ JOSEPH G. GIRATA
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Joseph G. Girata
Vice President of Finance and
Administration and Chief Financial Officer
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EXHIBIT 99.1
PRESS RELEASE
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CONNECT, INC. ANNOUNCES PRELIMINARY SECOND QUARTER RESULTS AND STRATEGIC PARTNER
INITIATIVE
MOUNTAIN VIEW, Calif., July 6 /PRNewswire/ -- CONNECT, Inc. (Nasdaq: CNKT.),
today announced that, based on current information, the Company expects total
revenues for its second fiscal quarter, ended June 30, 1998, to be in the range
of $1.5 to $1.7 million, as compared to total revenues of $2.25 million in the
prior quarter. It is expected the Company's net loss will be improved over that
reported in the prior quarter and that the net loss for the current quarter will
be less than $2 million.
The Company also announced it has hired Alliant Partners, a Palo Alto,
California-based investment banking firm, to assist the Company in evaluating
opportunities to enhance stockholder value through strategic relationships,
including those that could lead to the sale of the Company. The Company further
stated that it was not currently engaged in serious negotiations with any third
party concerning such relationships and that no assurance can be provided that
the Company will succeed in enhancing stockholder value through these actions.
Craig Norris, CONNECT's president and CEO, commented, ``Upon assumption of the
role of CEO approximately three months ago, I performed an assessment of the
actions required to improve CONNECT's current operating results and future
prospects. At that time we embarked on an aggressive cost-reduction program to
better align our expenses with our current sales. The expected improvement in
our operating loss is a testament to our success in this area. We have
consistently demonstrated the efficacy of our products to existing customers,
including AT&T Wireless, Moore Business Forms, Snap-on Tools, Maintenance
Warehouse and others. Currently, we believe our sales effort has been hampered
by our size and relative lack of visibility. We believe the best course for
bringing more new customers into our installed base is to develop strategic
relationships, and look forward to working closely with Alliant Partners to
obtain these objectives.''
ABOUT CONNECT, INC.
CONNECT provides comprehensive application software to enable Internet-based
electronic commerce. CONNECT's award-winning OrderStream(TM), MarketStream(TM),
and PurchaseStream(TM) applications allow global companies to manage the secure
sales and purchasing of goods and services via the Internet, including sales-to-
order capture, management of multi-supplier/multi-buyer communities, and the
automation of MRO procurement processes. For more information, telephone 800-
262-2638 or access the CONNECT Web site at www.connectinc.com.
Except for the historical information contained herein, the matters discussed in
this news release are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from those in
such forward-looking statements. Potential risks and uncertainties include,
without limitation, those mentioned in the Company's Annual Report on Form 10-K
for the year ended December 31, 1997 and the Company's ability to implement its
products, acceptance by the marketplace of the Company's products and services
and the Company's ability to develop new products and services.
