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) January 31,
1999
SYQT, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-19674 94-2793941
(Commission File Number) (IRS Employer Identification No.)
46939 Bayside Parkway, Fremont, California 94538
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (510) 226-
4000
Not Applicable
(Former name or former address, if changed since last report.)
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events
Sale of Substantially All Assets
Registrant previously disclosed that on November 17, 1998, it
filed a petition pursuant to Chapter 11 of the United States
Bankruptcy Code. It also previously disclosed that on
January 11, 1999, Registrant entered into an agreement with
Iomega Corporation for the sale of substantially all of
Registrant's assets to Iomega. On April 6, 1999, the sale of
those assets closed, and on April 22, 1999, Registrant issued a
press release announcing the closing of the sale. A copy of
that press release is attached hereto as Exhibit 99.1. Pursuant
to the sale, Registrant changed its name from SyQuest
Technology, Inc., to SYQT, Inc.
Absence of Distribution to Shareholders/Bar Date for Filing
Claims
The proceeds from the sale of Registrant's assets were paid to
Registrant's secured lender, Greyrock Business Credit. There
were no excess proceeds available from the sale to distribute to
any other party. As a result of the remaining claims of
Greyrock Business Credit, the claims of administration incurred
during the pendancy of the bankruptcy, and the claims of
unsecured creditors, it is not expected that there will be any
assets available for distribution to Registrant's shareholders.
A bar date of May 19, 1999, has been established as the deadline
for parties to file proof of claims or interests.
Financial Information
Since the filing of its bankruptcy petition, Registrant has not
filed its periodic reports required pursuant to the Securities
and Exchange Act of 1934, as amended. However, in order to
provide certain financial information, attached to this Report
on Form 8-K as exhibit 27.1 and 27.2 is a copy of the monthly
operating reports filed for the periods January 1-31, 1999, and
February 1-28, 1999, in connection with Registrant's bankruptcy
case.
Item 7. Financial Statements and Exhibits
c) Exhibits
27.1 Registrant's Monthly Operating Report for the
month of January 1999.
27.2 Registrant's Monthly Operating Report for the
month of February 1999.
99.1 Press release announcing the sale of assets to
Iomega Corporation.
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.
SYQUEST TECHNOLOGY, INC.
(Registrant)
Date: April 22, 1999 By /s/ Jack Thorsen
Jack Thorsen
Executive Vice President
Exhibit 27.1
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: [CASE NAME] Case No. 98-71198-T
SYQUEST TECHNOLOGY, INC. CHAPTER 11
MONTHLY OPERATING REPORT
(GENERAL BUSINESS CASE)
SUMMARY OF FINANCIAL STATUS
MONTH ENDED: 1/31/99 FILING DATE: 2/19/99
1. Debtor in possession (or trustee) hereby submits this
Monthly Operating Report on the Accrual Basis of accounting (or
if checked here ___ the Office of the U.S. Trustee or the Court
has approved the Cash Basis of Accounting for the Debtor).
Dollars reported in ($000)
2. Asset Structure
a. Current Assets (Market Value)
End of Current End of Prior As of
Month Month Petition Filing
29,585 29,906
b. Total Assets (Market Value)
End of Current End of Prior As of
Month Month Petition Filing
37,493 37,814 36,899
c. Current Liabilities
End of Current End of Prior As of
Month Month Petition Filing
32,172 32,07
d. Total Liabilities
End of Current End of Prior As of
Month Month Petition Filing
86,229 86,133 85,026
3. Statement of Cash Receipts & Disbursements for Month
a. Total Receipts
Current Prior Cumulative
Month Month (Case to Date)
142 553 695
b. Total Disbursements
Current Prior Cumulative
Month Month (Case to Date)
352 308 739
c. Excess (Deficiency) of Receipts Over Disbursements (a - b)
Current Prior Cumulative
Month Month (Case to Date)
<210> 245 <44>
d. Cash Balance Beginning of Month
Current Prior
Month Month
261 <16>
e. Cash Balance End of Month (c + d)
Current Prior
Month Month
51 261
4. Profit (Loss) from the Statement of Operations
Current Prior Cumulative
Month Month (Case to Date)
<447> <244> <853>
5. Account Receivables (Pre and Post Petition)
Current Prior Cumulative
Month Month (Case to Date)
11,077 11,130
6. Post-Petition Liabilities
Current Prior
Month Month
30 40
7. Past-Due Post Petition Account Payables(over 30 days)
Current Prior
Month Month
0 0
At the end of this reporting month: Yes No
8. Have any payments been made to pre-petition X
creditors, other than payments in the normal
course to secured creditors or lessors? (if yes,
attach listing including date of payment, amount
of payment and name of payee)
9. Have any payments been made to professionals?
(if yes, attach listing including date of payment,
amount of payment and name of payee) X
10. If you answered yes to line 7, 8, or 9,
were all such payments approved by the court?
11. Have any payments been made to officers,
insiders, shareholders, relatives? (if yes,
attach listing including date of payment,
amount and reason for payment, and name of payee) X
12. Is the estate insured for replacement cost of
assets and for general liability? X
13. Are a plan and disclosure statement on file? X
14. Was there any post-petition borrowing during X
this reporting period?
15. Check if paid: Post-petition taxes X
U.S. Trustee Quarter Fees X
Check if filing is current for post-
Petition tax reporting and tax returns
(Attach explanation, if post-petition taxes or U.S. Trustee
Quarterly Fees are not paid current or if post-petition tax
reporting and tax return filings are not current.)
I declare under penalty of perjury that I have reviewed the
above summary and attached financial statements, and after
making reasonable inquiry believe that these documents are
correct.
Date: February 19, 1999 /s/ Henry Lo
Responsible Individual
SYQUEST TECHNOLOGY, INC.
DEBTOR IN POSSESSION
STATEMENT OF OPERATIONS (IN 000's)
FOR THE PERIOD 1/1/99 THROUGH 1/31/99
ACTUAL
($)
REVENUES:
NET SALES 89
COST OF SALES 58
31
OPERATING EXPENSES:
PAYROLL 209 (2)
RENT 55 (3)
INTEREST 96 (1)
UTILITIES 76 (5)
OUTSIDE SERVICES-SECURITY 12 (4)
OTHER 30
TOTAL OPERATING EXPENSES 478
NET LOSS BEFORE INCOME TAXES (447)
INCOME TAXES 0
NET LOSS (447)
(1) Interest accrual for the period 1/1-1/31/99.
(2) Payroll expense.
(3) Rent expense for the period 1/1-1/31/99.
(4) Outside services (security).
(5) PG&E and Pacific Bell.
SYQUEST TECHNOLOGY, INC.
DEBTOR IN POSSESSION
BALANCE SHEET (IN 000's)
AS OF 1/31/99
12/31/98 1/31/99
ASSETS
Current Assets:
Cash 261 281
A/R 11,130 11,077
Inventories 16,988 16,930
Prepaid & Deposits 1,527 1,527
TOTAL CURRENT ASSETS 29,906 29,585
NET PROPERTY, PLANT
& EQUIPMENT 5,081 5,081
TOTAL FIXED ASSETS 5,081 5,081
OTHER LONG TERM ASSETS 2,827 2,827
TOTAL ASSETS 37,814 37,493
LIABILITIES:
Bank Borrowings-Greyrock/SVB 9,168 9,2648
Accounts Payable 13,122 13,152
Accrued Liabilities 9,786 9,786
Other Liabilities 26,452 26,452
TOTAL LIABILITIES 58,528 58,654
INTERCOMPANY PAYABLE 27,605 27,605
STOCKHOLDER'S EQUITY (Deficit)<48,319> <48,766>
TOTAL LIABILITIES & STOCKHOLDERS'
EQUITY (DEFICIT) 37,814 37,493
MONTHLY TAX STATEMENT
Debtor: SyQuest Technology, Inc.
Case No.: 98-71198-T
Month reported: January 1999
1/14/99 1/28/99
GROSS PAYROLL 59,858.77 70,376.91
Federal Tax 15,462.44 16,956.15
State Tax Withheld 3,775.43 4,548.99
Employer Tax 3,214.81 3,998.81
Remittance to IRS 18,677.25 20,954.96
Date Remitted 1/15/99 1/29/99
Remittance to EDD 3,775.43 4,548.99
Date remitted 1/15/99 1/29/99
GROSS SALES
Remittance to SBE
Date Remitted
OTHER TAXES
Remittance
Date Remitted
I declare under penalty of perjury under the laws of the
United States of America that the foregoing is true and correct.
DATE: 2/18/99 Signature: /s/ Henry Lo
Print Name: Henry Lo
To comply with the court's Order For Payment Of State And
Federal Taxes and the U.S. Trustee Guidelines, attach the signed
original of this statement to the Monthly Operating Report filed
with court; attach a copy to the copy of the Monthly Operating
Report served on the United States Trustee; and transmit a copy
of this statement to the IRS and the EDD. This statement is due
on or before the 20th day of the month following the month being
reported.
Exhibit 27.2
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: [CASE NAME] Case No. 98-71198-T
SYQUEST TECHNOLOGY, INC. CHAPTER 11
MONTHLY OPERATING REPORT
(GENERAL BUSINESS CASE)
SUMMARY OF FINANCIAL STATUS
MONTH ENDED: 2/28/99 FILING DATE: 3/12/99
1. Debtor in possession (or trustee) hereby submits this
Monthly Operating Report on the Accrual Basis of accounting (or
if checked here ___ the Office of the U.S. Trustee or the Court
has approved the Cash Basis of Accounting for the Debtor).
Dollars reported in ($000)
2. Asset Structure
a. Current Assets (Market Value)
End of Current End of Prior As of
Month Month Petition Filing
29,514 29,585
b. Total Assets (Market Value)
End of Current End of Prior As of
Month Month Petition Filing
37,422 37,493 36,899
c. Current Liabilities
End of Current End of Prior As of
Month Month Petition Filing
33,095 32,17
d. Total Liabilities
End of Current End of Prior As of
Month Month Petition Filing
87,152 86,229 85,026
3. Statement of Cash Receipts & Disbursements for Month
a. Total Receipts
Current Prior Cumulative
Month Month (Case to Date)
377 142 1,072
b. Total Disbursements
Current Prior Cumulative
Month Month (Case to Date)
364 352 1,103
c. Excess (Deficiency) of Receipts Over Disbursements (a - b)
Current Prior Cumulative
Month Month (Case to Date)
13 <210> <31>
d. Cash Balance Beginning of Month
Current Prior
Month Month
51 261
e. Cash Balance End of Month (c + d)
Current Prior
Month Month
64 51
4. Profit (Loss) from the Statement of Operations
Current Prior Cumulative
Month Month (Case to Date)
<964> <447> <1,817>
5. Account Receivables (Pre and Post Petition)
Current Prior Cumulative
Month Month (Case to Date)
11,038 11,077
6. Post-Petition Liabilities
Current Prior
Month Month
480 30
7. Past-Due Post Petition Account Payables(over 30 days)
Current Prior
Month Month
0 0
At the end of this reporting month: Yes No
8. Have any payments been made to pre-petition X
creditors, other than payments in the normal
course to secured creditors or lessors? (if yes,
attach listing including date of payment, amount
of payment and name of payee)
9. Have any payments been made to professionals?
(if yes, attach listing including date of payment,
amount of payment and name of payee) X
10. If you answered yes to line 7, 8, or 9,
were all such payments approved by the court?
11. Have any payments been made to officers,
insiders, shareholders, relatives? (if yes,
attach listing including date of payment,
amount and reason for payment, and name of payee) X
12. Is the estate insured for replacement cost of
assets and for general liability? X
13. Are a plan and disclosure statement on file? X
14. Was there any post-petition borrowing during X
this reporting period?
15. Check if paid: Post-petition taxes X
U.S. Trustee Quarter Fees X
Check if filing is current for post-
Petition tax reporting and tax returns X
(Attach explanation, if post-petition taxes or U.S. Trustee
Quarterly Fees are not paid current or if post-petition tax
reporting and tax return filings are not current.)
I declare under penalty of perjury that I have reviewed the
above summary and attached financial statements, and after
making reasonable inquiry believe that these documents are
correct.
Date:3/12/99 /s/ Henry Lo
Responsible Individual
SYQUEST TECHNOLOGY, INC.
DEBTOR IN POSSESSION
STATEMENT OF OPERATIONS (IN 000's)
FOR THE PERIOD 2/01/99 THROUGH 2/28/99
ACTUAL
($)
REVENUES:
NET SALES 68
COST OF SALES 45
23 33.82%
OPERATING EXPENSES:
PAYROLL 230 (2)
RENT 55 (3)
INSURANCE 102 (6)
INTEREST - SVB/GREYROCK 79 (1)
INTEREST - IOMEGA 2
UTILITIES 9 (5)
OUTSIDE SERVICES-SECURITY 7 (4)
LEGAL 480
OTHER 23 (7)
TOTAL OPERATING EXPENSES 987
NET LOSS BEFORE INCOME TAXES (964)
INCOME TAXES 0
NET LOSS (244)
(1) Interest accrual for the period 1/1-1/31/99.
(2) Payroll expense (including severance accrual of $60K).
(3) Rent expense for the period 1/1/-1/31/99.
(4) Outside services (security).
(5) PG&E, Pacific Bell, and Website service provider.
(6) Directors and Officers / Property and Casualty /
Healthplan.
(7) Other:
IOMEGA Loan Origination Fee 2
Bankruptcy Notification Fees 18
Employee Expense Reports 3
SYQUEST TECHNOLOGY, INC.
DEBTOR IN POSSESSION
BALANCE SHEET (IN 000's)
AS OF 12/31/98
1/31/99 2/28/99
ASSETS
Current Assets:
Cash 51 64
A/R 11,077 11,038
Inventories 16,930 16,885
Prepaid & Deposits 1,527 1,527
TOTAL CURRENT ASSETS 29,585 29,514
NET PROPERTY, PLANT & EQUIPMENT 5,081 5,081
TOTAL FIXED ASSETS 5,081 5,081
OTHER LONG TERM ASSETS 2,827 2,827
TOTAL ASSETS 37,493 37,422
LIABILITIES:
DIP Financing - IOMEGA Corporation 274
Bank Borrowings - Greyrock/SVB 9,264 9,413
Accounts Payable 13,152 13,562
Accrued Liabilities 9,786 9,846
Other Liabilities 26,452 26,452
TOTAL LIABILITIES 58,654 59,547
Intercompany Payable 27,605 27,605
Stockholder's Equity (Deficit) <48,766> <49,730>
TOTAL LIABILITIES & STOCKHOLDERS
EQUITY (DEFICIT) 37,493 37,422
Monthly Tax Statement
Debtor: SyQuest Technology, Inc.
Case No.: 98-71198-T
Month reported: February 1999
2/12/99 2/26/99
GROSS PAYROLL 56,703.56 55,078.26
Federal Tax 15,156.06 15,615.70
State Tax Withheld 3,533.55 3,533.55
Employer Tax 4,206.54 4,140.21
Remittance to IRS 19,362.60 19,755.91
Date Remitted 2/12/99 2/26/99
Remittance to EDD 3,533.55 3,533.55
Date remitted 2/12/99 2/12/99
GROSS SALES
Remittance to SBE
Date Remitted
OTHER TAXES
Remittance
Date Remitted
I declare under penalty of perjury under the laws of the
United States of America that the foregoing is true and correct.
DATE: 3/12/99 Signature: /s/ Henry Lo
Print Name: Henry Lo
___________________________
To comply with the court's Order For Payment Of State And
Federal Taxes and the U.S. Trustee Guidelines, attach the signed
original of this statement to the Monthly Operating Report filed
with court; attach a copy to the copy of the Monthly Operating
Report served on the United States Trustee; and transmit a copy
of this statement to the IRS and the EDD. This statement is due
on or before the 20th day of the month following the month being
reported.
Exhibit 99.1
Contacts:
Jack Thorsen
(510) 226-4957
FOR IMMEDIATE RELEASE
SYQUEST TECHNOLOGY ANNOUNCES NAME CHANGE AND
THE SALE OF SELECT ASSETS TO IOMEGA CORPORATION
FREMONT, Calif., April 22, 1999 -- SyQuest Technology Inc.
announced that the sale of substantially all its U.S. assets to
Iomega Corporation for approximately $9.1 million has been
completed. Included in the sale was all intellectual property,
all U.S. fixed assets, and all U.S. inventory, raw materials and
work in progress. The proceeds from the sale were used to pay
SyQuest's secured lender, Greyrock Business Credit. As part of
the sale, SyQuest has changed its name to SYQT, Inc.
SYQT will retain all of its accounts receivable, will
continue providing limited service and support (including
warranty service), and offer limited sales of SyQuest branded
products. Information regarding service, support, sales,
repairs, warranty returns and product service operations can be
found on SYQT's web site (http://www.SYQT.com). The Company
anticipates adding additional customer service and technical
support resources in the future.
Notwithstanding the sale of assets and the collection of
its accounts receivables, SYQT does not expect to have
sufficient assets to satisfy the claims of all creditors. As a
result, it appears that there will not be any distribution to
SYQT's shareholders and that SYQT common stock therefore has no
value. SYQT common stock had previously been delisted from the
Nasdaq National Market on January 21, 1999.
###
This news release contains forward-looking statements that
involve risks and uncertainties, including competition in the
marketplace for the company's products, and other risks detailed
from time to time in the SEC reports filed by SYQT, fka SyQuest
Technology, Inc. including its most recent reports on Forms 8K,
1OK and 10Q.
SyQuest is a registered trademark and the SyQuest logo is a
trademark of Iomega Corporation. All other brands or trade
names are the property of their respective companies. SYQT is
not an agent or otherwise an affiliate of Iomega Corporation.
