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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): August 27, 1999
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TRICORD SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-21366 41-1590621
(State of or other (Commission (I.R.S. Employer
jurisdiction of incorporation) File Number) Identification No.)
2905 Northwest Boulevard, Suite 20,
Plymouth, Minnesota 55441
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (612) 557-9005
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ITEM 5. OTHER EVENTS.
On August 27, 1999, Tricord Systems, Inc. (the "Company") announced that it
has sold its server hardware business to EFC Systems, Inc. of Nashville,
Tennessee. Additional information is set forth in the press release included as
an exhibit to this Report, the text of which is incorporated by reference
herein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) FINANCIAL STATEMENTS OF BUSINESSES ACQUIRED.
Not applicable.
(b) PRO FORMA FINANCIAL INFORMATION.
Not applicable.
(c) EXHIBITS.
99.1 - Press Release dated August 27, 1999.
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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 thereunto duly authorized.
TRICORD SYSTEMS, INC.
Dated: September 23, 1999 By /s/ John J. Mitcham
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John J. Mitcham
Chairman and Co-Chief Executive Officer
2
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INDEX TO EXHIBITS
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Exhibit Item Method of Filing
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99.1 Press Release dated August 27, 1999.... Filed herewith electronically
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TRICORD SYSTEMS DIVESTS SERVER HARDWARE BUSINESS, FOCUSES ON STORAGE SOFTWARE
PLYMOUTH, MN (August 27, 1999) - Tricord Systems, Inc. (NASDAQ: TRCD) today
announced that the company has sold its server hardware business to EFC Systems,
Inc. of Nashville, TN.
"EFC welcomes the opportunity to expand our range of service and support
offerings to the Tricord server customers", said Ernie Chappell, President of
EFC Systems. "We believe that our years of experience with Tricord server
products and our exclusive focus on service and support will be the key to long
term customer satisfaction," he said.
"This move assures that existing Tricord hardware customers will continue to
benefit from high levels of service and support," notes John Mitcham, co-CEO of
Tricord. "Moreover, it now allows Tricord to focus entirely on the development
and marketing of our unique storage software," he concluded.
EFC Systems has been a Tricord value added reseller and service provider since
1994, offering highly qualified support by Certified Tricord Engineers. Under
the terms of the sale of the Tricord server hardware business, EFC Systems
acquires the domestic Tricord inventory of service spares and upgrade parts,
customer historical data, and the exclusive distribution rights for software
drivers and proprietary hardware technologies. EFC will assume existing Tricord
service and warranty agreements, and will continue to sell components for the
Tricord family of servers, offer "24-by-7" maintenance and support contracts for
Tricord servers, and stock service spares and upgrades.
The Company expects to incur a non-cash charge of approximately $200 thousand in
the third quarter as a result of this transaction. The Company may receive up
to $200 thousand in contingent consideration from EFC, depending on EFC sales
between now and the end of 2000.
Tricord Systems, Inc. is a developer of innovative storage technologies for
customers seeking convenient, cost-effective solutions for data storage
management. Tricord solutions are based on Tricord Storage Management Software
(TSMS) - high performance software that makes storage a shared network resource
and is optimized for both current and emerging storage
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architectures. Tricord is based in Plymouth, MN USA. For more information,
please call 1-800-TRICORD or 612-557-9005, or visit us at www.tricord.com.
"Safe-Harbor" Statement Under Private Securities Act of 1995: The statements
contained herein that are not historical facts contain forward-looking
information with respect to plans, projections or future performance of the
Company. There is no guarantee or assurance that these plans, projections or
future performance of the Company as indicated will be achieved, and actual
results could differ materially. Factors, certain risks and uncertainties which
could impact the Company's future results include, without limitation, the
ability of Tricord to complete development and release commercially its storage
management software products, the ability of Tricord to sign OEM partners,
market acceptance of Tricord-enabled products, the ability of the Company to
maintain its cost structure in accordance with its operating plan, and other
risks and uncertainties detailed in the Company's filings with the Securities
and Exchange Commission, including the Company's Form 10-K for fiscal 1998.
# # #
Tricord, Tricord Storage Management Software and Network Storage Made Simple are
all trademarks, registered trademarks, or service marks of Tricord Systems, Inc.
All other names mentioned are trademarks, registered trademarks, or service
marks of their respective companies.
Financial Contact:
John Gribi of Tricord Systems, Inc.
612-551-6402
Media Contact:
John Sweney of Brookwoods Media Group, Inc.
713-934-0529
EFC Systems, Inc. Contact:
Ernie Chappell of EFC Systems, Inc.
615-641-7746
www.efcsystems.com
