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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):
APRIL 20, 2000
Auspex Systems, Inc.
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(Exact name of registrant as specified in its charter)
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Delaware 0-21432 93-0963760
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(State or other jurisdiction of (Commission File Number) (IRS Employer Identification No.)
incorporation)
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2300 Central Expressway, Santa Clara, California 95050
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(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code (408) 566-2000
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Item 5. Other Events
On April 20, 2000, Auspex Systems, Inc. issued a press release
reportings its results for the third quarter of fiscal 2000. Said
press release is filed with this Form 8-K as an exhibit.
Item 7. Financial Statements. Pro Form Financial Information and Exhibits
(c) Exhibits
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Exhibit Number Description
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Exhibit 99.1 Auspex Systems, Inc. Press Release dated April 20, 2000
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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 hereunto duly authorized.
Date: April 20, 2000
AUSPEX, INC.
/s/ Gary J. Sbona
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Gary J. Sbona
Chairman of the Board of Directors and
interim Chief Executive Officer
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INDEX TO EXHIBITS
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Exhibit Number Description
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Exhibit 99.1 Auspex Systems, Inc. Press Release dated April 20, 2000
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EXHIBIT 99.1
FOR INFORMATION CONTACT:
Investor Relations
(408) 566-2213
AUSPEX REPORTS THIRD FISCAL QUARTER 2000 RESULTS
SANTA CLARA, CA -- April 20,2000 -- Auspex Systems, Inc. (NASDAQ: ASPX), a
leader in the Network Attached Storage market, today reported results for its
third fiscal quarter 2000 ended March 31, 2000.
Revenues for the third quarter ended March 31, 2000 were $21.4 million, versus
$22.6 million in the prior quarter. The net loss for the third quarter was $39.9
million, or $1.45 per share compared with a net loss of $16.3 million, or $.59
per share for the previous quarter ended December 31, 1999. The Company
wrote-off severance costs and idle assets in the third fiscal quarter ended
March 31, 2000 related to the restructuring of its operations in the amount of
$17.6 million. Additionally, operational write-offs of $4.2 million were taken
to reserve inventory and reduce other assets. The pro forma net loss excluding
the restructuring and operating write-offs was $17.9 million, or $.67 per share.
The restructuring includes a worldwide workforce reduction of 30% and
consolidation of operations that is projected to lower overall operating
expenses by over $40 million per year. "We have taken significant steps to
refocus our business and to bring our operating costs in line. By taking these
steps we believe we can strengthen those areas that represent the best
opportunities for growth moving forward," said Gary J. Sbona, Chairman and Chief
Executive Officer.
On February 15, 2000, the Company retained the services of Regent Pacific
Management Corporation. In particular, the Company named Gary J. Sbona, the CEO
of Regent Pacific, to serve as Auspex's Chairman and Chief Executive Officer.
"We need to improve our performance from our current levels of operation," said
Sbona. "We are evaluating every area of the business with the objective of
improving results over the next few quarters, and increasing shareholder value."
Also early in the quarter, in January 2000, Auspex completed a $25 million
equity financing with three institutional investors.
SPECIAL NOTE
The statement above regarding projected lower overall operating expenses is a
forward-looking statement that involves risks and uncertainties. Actual results
may differ materially from those projected in this statement for various
reasons, including the following: The company's ability to attract and retain
key personnel; increase market penetration outside of it's current customer
base; rapidly evolve the technology and products with the performance,
functionality, and reliability required by its customers; the ability to
leverage alternate channels of distribution; the impact of competitive products
and pricing; and general economic conditions in Japan, North America and Europe.
For additional
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information on risks and uncertainties, see the company's public reports filed
with the SEC, including the company's Form 10-K for the 1999 fiscal year and the
company's most recent Form 10-Q
ABOUT AUSPEX
Auspex Systems is a leading provider of network data-access solutions for All
the Data, All the Time(TM). The company's customers are the market leaders and
innovators in some of today's most competitive industries, where
around-the-clock availability of data is essential in order to achieve the
individual objectives of their businesses. Auspex employs approximately 370
people, with worldwide direct and indirect sales channels. Visit the company's
web site at www.auspex.com.
(TABLES FOLLOW)
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AUSPEX SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
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THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2000 1999 2000 1999
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Revenues
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Product revenue $ 14,501 $ 18,551 $ 49,158 $ 62,934
Service revenue 6,861 8,218 20,980 24,456
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Total revenues 21,362 26,769 70,138 87,390
Cost of Revenues
Cost of product revenue 12,087 9,987 32,113 32,465
Cost of service revenue 7,622 5,598 20,828 17,067
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Total cost of revenues 19,709 15,585 52,941 49,532
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Gross margin 1,653 11,184 17,197 37,858
Operating Expenses
Selling, general and administrative 15,567 13,701 43,759 38,730
Research and development 8,578 9,026 24,858 26,125
Restructuring 17,642 -- 17,642 0
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Total operating expenses 41,787 22,727 86,259 64,855
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Income / (loss) from operations (40,134) (11,543) (69,062) (26,997)
Other income (expense), net 555 652 1,088 1,569
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Income / (loss) before provision for income taxes (39,579) (10,891) (67,974) (25,428)
Provision for income taxes 279 40 429 107
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Net income / (loss) $ (39,858) $ (10,931) $ (68,403) $ (25,535)
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Preferred stock dividend requirement 1,175 -- 1,175 0
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Net income/ (loss) available to common stockholders $ (41,033) $ (10,931) $ (69,578) $ (25,535)
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Net income / (loss) per share
Basic $ (1.45) $ (0.42) $ (2.51) $ (0.99)
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Diluted $ (1.45) $ (0.42) $ (2.51) $ (0.99)
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Number of shares used in per share computations
Basic 28,254 26,077 27,672 25,833
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Diluted 28,254 26,077 27,672 25,833
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AUSPEX SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
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MARCH 31, JUNE 30,
2000 1999
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(UNAUDITED)
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Assets
Current Assets
Cash and short-term investments $ 40,053 $ 42,637
Accounts receivable, net 17,413 20,374
Inventories 5,422 10,905
Prepaid and other 4,147 9,919
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Total current assets 67,035 83,835
Property and Equipment, net 16,959 28,841
Other Assets 2,159 2,372
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Total assets $ 86,153 $ 115,048
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Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 11,029 $ 13,316
Accrued liabilities 22,743 11,975
Deferred revenue 10,292 10,580
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Total current liabilities 44,064 35,871
Stockholders' Equity 42,089 79,177
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Total liabilities and stockholders' equity $ 86,153 $ 115,048
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