<PAGE> 1
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
December 16, 1996
Date of Report (date of earliest event reported)
GLOBAL VILLAGE COMMUNICATION,
INC.
(Exact name of Registrant as specified in its charter)
Delaware 000-23260 94-3095680
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification No.)
1144 East Arques Avenue
Sunnyvale, CA 94086
(Address of principal executive offices)
Registrant's telephone number, including area code: (408) 523-1000
Former name or former address, if changed: N/A
<PAGE> 2
ITEM 5. OTHER EVENTS
On December 16, 1996, Global Village Communication, Inc. issued a press release
which is attached hereto as an exhibit.
Exhibit 5.1 Press Release - Global Village Announces Comprehensive
Restructuring
-2-
<PAGE> 3
SIGNATURE
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.
Dated: December 18, 1996 GLOBAL VILLAGE COMMUNICATION, INC.
By: /s/ Neil Selvin
----------------------------------------
Neil Selvin
President and Chief Executive Officer
(Principal Executive Officer)
-3-
<PAGE> 4
EXHIBIT INDEX
Sequentially
Numbered
Document Page
- -------- ----
5.1 Press Release -- Global Village Announces 6-7
Comprehensive Restructuring
<PAGE> 1
EXHIBIT 5.1
GLOBAL VILLAGE ANNOUNCES COMPREHENSIVE RESTRUCTURING
SUNNYVALE, CA (December 16, 1996) - Global Village Communication (Nasdaq:GVIL)
today announced a comprehensive restructuring plan to streamline its operations,
reduce its workforce and enable the company to return to profitability. The
company expects revenues for its fiscal third quarter will fall significantly
below expectations. Accordingly, the company will report an operating loss for
the quarter, including non-recurring charges resulting from the planned
restructuring, of approximately $25 million to $30 million.
"The goal of these changes is to return Global Village to profitability, while
allowing us to focus on our core business of making easy-to-use personal
communications products for both Macintosh and Windows users," said Neil Selvin,
Global Village's president and CEO.
The restructuring will involve several steps designed to streamline the company
and position it for future profitability and growth. Specifically, the company
announced:
- A reduction of its workforce by approximately 20 percent to streamline
various departments and bring headcount and operating expenses in line
with projected revenue. The 42 employees affected by the layoff will
receive severance packages and outplacement services.
- A reduction in other operating expenses. Non-headcount related expenses
will be reduced -- specifically in administration, marketing and
operations -- to reduce the break-even point and align the operating
expense model with expected revenues and gross margins.
- A reserve against anticipated product returns from resellers and
distributors. While the quarter has not been completed, the company
expects the sell-through of certain products, both on the Macintosh and
Windows platform, will not achieve the levels originally anticipated.
- A write-down of inventory and other assets to better match the expected
sales of various products in future quarters, and to reflect a refocusing
on core product lines.
"The actions we are taking today will position Global Village as a more
streamlined and focused company," said Selvin. "We will have a renewed emphasis
on personal communications products, designed to be easy-to-use and to appeal to
home and small business professionals on all major personal computer platforms.
"During the last six months, Global Village has introduced and shipped several
unique products for Windows users, along with several new Macintosh-based
products," Selvin continued. "These products have won significant critical
acclaim and form the cornerstone of our focus on creating innovative products
that deliver unique value to the personal computer user. Global Village will
continue to develop and market products that support this tradition of combining
innovative software and reliable hardware to create a total solution for the
user."
Global Village expects to announce its third fiscal quarter results on January
21, 1997.
<PAGE> 2
About Global Village Communication
With nearly eight million customers, Global Village Communication (Nasdaq:GVIL)
is a leading supplier of integrated communication solutions for personal
computer users. The company sells its products directly and through leading
VARs, retailers and distributors worldwide. For more information about Global
Village please visit "The Village" web site at http://www.globalvillage.com.
Portions of this news release contain forward-looking statements. Investors are
cautioned that all forward-looking statements involve risks and uncertainties,
including, without limitation, announcements by the company's customers and
competitors, product returns, risks related to delays in product development and
new product introductions, rapidly changing technology, an intensely competitive
market, market acceptance of new products, foreign operations, and general
economic conditions. Each of these factors, and others, are discussed more fully
in the company's last filed Form 10-K, Form 10Q and the company's other filings
with the Securities and Exchange Commission.
# # #
Investor Contact:
Marianne Baldrica, Demer IR
(510) 938-2678
[email protected]
Media Contact:
Kevin Burr, Global Village
(408) 523-2260
[email protected]
