SAFEGUARD SCIENTIFICS INC ET AL
SC 13G/A, 1999-02-16
COMPUTERS & PERIPHERAL EQUIPMENT & SOFTWARE
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                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                  Schedule 13G/A
                                 (Rule 13d-102)

             INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
           TO RULES 13d-1(b)(c), AND (d) AND AMENDMENTS THERETO FILED
                            PURSUANT TO RULE 13d-2(b)
                               (Amendment No. 2 )(1)

                        Sanchez Computer Associates, Inc.
                                (Name of Issuer)

                           Common Stock, no par value
                         (Title of Class of Securities)

                                   799702 10 5
                                 (CUSIP Number)

                                December 31, 1998
             (Date of Event Which Requires Filing of this Statement)




Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:

/     /        Rule 13d-1(b)

/     /        Rule 13d-1(c)

/  x  /        Rule 13d-1(d)


1 The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.

         The information required on the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).




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CUSIP NO. 799702 10 5


1.       NAME OF REPORTING PERSONS
         S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

         Safeguard Scientifics, Inc. 23-1609753

2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                  (a)      / X /
                                                                  (b)      /   /
3.       SEC USE ONLY

4.       CITIZENSHIP OR PLACE OF ORGANIZATION

         Pennsylvania

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

         5.       SOLE VOTING POWER                           0

         6.       SHARED VOTING POWER                         3,144,092

         7.       SOLE DISPOSITIVE POWER                      0

         8.       SHARED DISPOSITIVE POWER                    3,144,092


9.       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

         3,144,092

10.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
         /  /

11.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

         26.8%

12.      TYPE OF REPORTING PERSON*

         CO

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CUSIP NO. 799702 10 5


1.       NAME OF REPORTING PERSONS
         S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

         Safeguard Scientifics (Delaware), Inc. 51-0291171

2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                  (a)      / X /
                                                                  (b)      /   /
3.       SEC USE ONLY

4.       CITIZENSHIP OR PLACE OF ORGANIZATION

         Delaware

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

         5.       SOLE VOTING POWER                           0

         6.       SHARED VOTING POWER                         2,735,292

         7.       SOLE DISPOSITIVE POWER                      0

         8.       SHARED DISPOSITIVE POWER                    2,735,292

9.       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

         2,735,292

10.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
         /   /

11.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

         23.4%

12.      TYPE OF REPORTING PERSON*

         CO



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CUSIP NO. 799702 10 5


1.       NAME OF REPORTING PERSONS
         S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

         Safeguard Delaware, Inc. 52-2081181
2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                  (a)      / X /
                                                                  (b)      /   /
3.       SEC USE ONLY

4.       CITIZENSHIP OR PLACE OF ORGANIZATION

         Delaware

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

         5.       SOLE VOTING POWER                           0

         6.       SHARED VOTING POWER                         408,800

         7.       SOLE DISPOSITIVE POWER                      0

         8.       SHARED DISPOSITIVE POWER                    408,800

9.       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

         408,800

10.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
         /   /

11.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

         3.5%

12.      TYPE OF REPORTING PERSON*

         CO



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Item 1 (a)   NAME OF ISSUER:

Sanchez Computer Associates, Inc.

Item 1 (b)   ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:

40 Valley Stream Parkway
Malvern, PA 19355

Item 2 (a)   NAME OF PERSON FILING:

(1)      Safeguard Scientifics, Inc.
(2)      Safeguard Scientifics (Delaware), Inc.
(3)      Safeguard Delaware, Inc.

Item 2 (b)   ADDRESS OF PRINCIPAL BUSINESS OFFICE:

(1)      800 The Safeguard Building
         435 Devon Park Drive
         Wayne, PA 19087-1945

(2)      103 Springer Building
         3411 Silverside Road
         Wilmington, DE 19803

(3)      103 Springer Building
         3411 Silverside Road
         Wilmington, DE 19803

Item 2 (c)   CITIZENSHIP:

(1)      Pennsylvania
(2)      Delaware
(3)      Delaware

Item 2 (d)   TITLE OF CLASS OF SECURITIES:

Common Stock, no par value per share

Item 2 (e)   CUSIP NUMBER:

799702 10 5

Item 3            IF THIS STATEMENT IS FILED PURSUANT TO RULES 13D-1(B), OR 
                  13D-2(B) OR (C), CHECK WHETHER THE PERSON FILING IS A :
             

                  (a)      / /      Broker or dealer registered under Section 15
                                    of the Exchange Act;

                  (b)      / /      Bank as defined in Section 3(a)(6) of the
                                    Exchange Act;

                  (c)      / /      Insurance Company as defined in Section
                                    3(a)(19) of the Exchange Act;


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                  (d)      / /      Investment Company registered under
                                    Section 8 of the Investment Company Act of
                                    1940;

                  (e)      / /      An investment adviser in accordance with
                                    Rule 13d-1(b)(1)(ii)(F);

                  (f)      / /      An employee benefit plan or endowment
                                    fund in accordance with Rule
                                    13d-1(b)(1)(ii)(F);

                  (g)      / /      A parent holding company or control
                                    person in accordance with Rule
                                    13d-1(b)(ii)(G);

                  (h)      / /      A savings association as defined in
                                    Section 3(b) of the Federal Deposit
                                    Insurance Act;

                  (i)      / /      A church plan that is excluded from the
                                    definition of an investment company under
                                    Section 3(c)(14) of the Investment Company
                                    Act;

                  (i)      / /      Group, in accordance with Rule 13d-1(b)(1)
                                    (ii)(J).

If this statement is filed pursuant to Rule 13d-1(c), check this box.    /    /

Not applicable

Item 4            OWNERSHIP:

(a)      Amount Beneficially Owned:

         3,144,092 shares of common stock

 (b)     Percent of Class:

         26.8%

(c) Number of shares as to which such person has:

         (i)      sole power to vote or to direct the vote:

                  0

         (ii)     shared power to vote or to direct the vote:

                  3,144,092

         (iii)    sole power to dispose or to direct the disposition of:

                  0

         (iv)     shared power to dispose or to direct the disposition of:

                  3,144,092

                 
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Item 5            OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS:
                 

         If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more than
five percent of the class of securities, check the following: / /

Item 6            OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF 
                  ANOTHER PERSON:
                 

Not applicable

Item 7            IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY
                  WHICH ACQUIRED THE SECURITY BEING REPORTED ON BY THE 
                  PARENT HOLDING COMPANY:

Safeguard Scientifics (Delaware), Inc. and Safeguard Delaware, Inc., Delaware
corporations, are wholly owned subsidiaries of Safeguard Scientifics, Inc.

Item 8            IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP:


Safeguard Scientifics (Delaware), Inc., Safeguard Delaware, Inc. and Safeguard
Scientifics, Inc. are members of a group for purposes of Sections 13(d) and
13(g) of the Securities Exchange Act of 1934.

Item 9            NOTICE OF DISSOLUTION OF GROUP:


Not applicable.

Item 10  CERTIFICATION:

By signing below I certify that, to the best of my knowledge and belief, the
securities referred to above were acquired in the ordinary course of business
and were not acquired for the purpose of and do not have the effect of changing
or influencing the control of the issuer of such securities and were not
acquired in connection with or as a participant in any transaction having such
purpose or effect.



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                                    SIGNATURE
                                    ---------

After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
In executing this statement, the undersigned agrees, to the extent required by
Rule 13d-1(f), that this statement is being filed on behalf on each of the
Reporting Persons herein.

                                     SAFEGUARD SCIENTIFICS, INC.

                                     By:      /S/ JAMES A. OUNSWORTH  
                                              ----------------------------------
                                              James A. Ounsworth
                                              Sr. Vice President and
                                              General Counsel
Dated: February 12, 1999

                                     SAFEGUARD SCIENTIFICS (DELAWARE), INC.

                                     By:      /S/ JAMES A. OUNSWORTH
                                              ----------------------------------
                                              James A. Ounsworth
                                              Vice President
Dated:  February 12, 1999

                                     SAFEGUARD DELAWARE, INC.

                                     By:      /S/ JAMES A. OUNSWORTH
                                              ----------------------------------
                                              James A. Ounsworth
                                              Vice President
Dated:  February 12, 1999




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