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Previous: VAN KAMPEN AMERICAN CAPITAL TRUST FOR INSURED MUNICIPALS, N-30D, 1998-06-11 |
Next: COLONIAL TRUST VI, 485APOS, 1998-06-11 |
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
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 10, 1998
DATA SYSTEMS & SOFTWARE INC.
(Exact name of Registrant as Specified in its Charter)
------------------------------------------------------
Delaware 0-19771 22-2786081
- ---------------------------- ------------------------ -------------
(State or Other Jurisdiction (Commission file Number) (IRS Employer
of Incorporation) Identification No.)
200 Route 17, Mahwah, New Jersey 07430
----------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (201) 529-2026
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<PAGE>
Item 7. Financial Statements and Exhibits.
(a) Financial Statements.
None.
(b) Pro forma financial information.
This Form 8-K/A amends the Form 8-K filed on May 5, 1998 reporting the
sale by the Registrant's wholly-owned International Data Operations, Inc.
subsidiary of substantially all the assets of its PHD (TM) Professional Help
Desk (TM) division ("PHD") to Computer Associates International, Inc.
The pro forma statement of operations data presented herein assumes that
the sale of PHD occurred on January 1, 1997. The pro forma balance sheet data as
of December 31, 1997 and March 31, 1998 assumes that the sale of PHD occurred on
such dates.
The unaudited pro forma condensed consolidated financial statements
presented herein are based on the historical financial statements of the Company
included with the Company's Anuual Report on Form 10-K for the year ended
December 31, 1997 and the Company's Quarterly Report on Form 10-Q for the
quarter ended March 31, 1998 as filed with the Securities and Exchange
Commission and should be read in conjunction therewith. In the opinion of
management, all adjustments have been made that are necessary to present fairly
the pro forma data.
Such statements are presented for illustrative purposes only and are not
necessarily indicative of the operating results that would have been achieved if
the sale had occurred on the date specified, nor are they indicative of the
Company's future operating results.
2
<PAGE>
DATA SYSTEMS & SOFTWARE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1997
(dollars in thousands except per share data)
<TABLE>
<CAPTION>
Pro Forma
As Reported Adjustments Pro Forma
(unaudited)
<S> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 1,424 $ 7,000 (1) $ 8,424
Trade accounts receivable, net 9,003 (1,350)(2) 7,653
Other current assets 7,530 (253)(3) 7,277
--------- ---------
Total current assets 17,957 23,354
--------- ---------
Investments 70,695 70,695
--------- ---------
Property and equipment, net 2,181 (456)(4) 1,725
--------- ---------
Other assets 6,638 6,638
--------- ---------
$ 97,471 $ 102,412
========= =========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable, accrued expenses and short term debt $ 8,779 (59)(5) $ 8,720
Other current liabilities 1,704 1,704
--------- ---------
Total current liabilities 10,483 10,424
--------- ---------
Total long-term liabilities 481 481
--------- ---------
Minority interests 30,272 30,272
--------- ---------
Shareholders' equity:
Common stock - $.01 par value per share:
Authorized 20,000,000 shares;
Issued - 7,708,540 shares 77 77
Additional paid-in capital 34,193 34,193
Retained earnings 23,813 5,000 (7) 28,813
--------- ---------
58,083 63,083
Treasury stock, at cost - 339,362 shares (1,848) (1,848)
--------- ---------
Total shareholders' equity 56,235 61,235
--------- ---------
Total liabilities and shareholders' equity $ 97,471 $ 102,412
========= =========
</TABLE>
See referenced notes attached.
3
<PAGE>
DATA SYSTEMS & SOFTWARE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
(dollars in thousands except per share data)
Pro Forma
As Reported Adjustments Pro Forma
(unaudited)
Sales:
Products $ 19,950 $(3,842)(8) $ 16,108
Services 20,046 20,046
-------- --------
39,996 36,154
-------- --------
Cost of sales:
Products 16,744 (1,126)(8) 15,618
Services 15,693 15,693
-------- --------
32,437 31,311
-------- --------
Gross profit 7,559 4,843
Selling, general and administrative
expenses 19,862 (7,512)(8) 12,350
-------- --------
Operating loss (12,303) (7,507)
Gain on sale of division -- 5,000
Other income (expense), net 142 (4)(8) 138
-------- --------
Loss before income taxes (12,161) (2,369)
Income taxes 3,032 (9) 3,032
-------- --------
Loss after income taxes (15,193) (5,401)
Minority interests (2,773) (2,773)
Equity in affiliates 8,027 8,027
-------- --------
Net loss $ (9,939) $ (147)
======== ========
Basic net loss per share $ (1.35) $ (0.02)
======== ========
Weighted average number of shares
outstanding (in thousands) 7,369 7,369
======== ========
See referenced notes attached
4
<PAGE>
DATA SYSTEMS & SOFTWARE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 1998
(dollars in thousands except per share data)
<TABLE>
<CAPTION>
Pro Forma
As Reported Adjustments Pro Forma
<S> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 1,400 $ 7,000 (1) $ 8,400
Trade accounts receivable, net 10,346 (929) (2) 9,417
Other current assets 4,933 4,933
--------- ---------
Total current assets 16,679 22,750
--------- ---------
Investments 70,091 70,091
--------- ---------
Property and equipment, net 2,475 (405) (4) 2,070
--------- ---------
Other assets 6,915 6,915
--------- ---------
$ 96,160 $ 101,826
========= =========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable, accrued expenses and short-term debt $ 10,735 666 (6) $ 11,401
Other current liabilities 1,590 1,590
--------- ---------
Total current liabilities 12,325 12,991
--------- ---------
Total long-term liabilities 561 561
--------- ---------
Minority interests 29,859 29,859
--------- ---------
Shareholders' equity:
Common stock -- $.01 par value per share:
Authorized 20,000,000 shares; Issued -- 7,708,540 shares 77 77
Additional paid-in capital 34,242 34,242
Retained earnings 20,944 5,000 (7) 25,944
--------- ---------
55,263 60,263
Treasury stock, at cost -- 339,362 shares (1,848) (1,848)
--------- ---------
Total shareholders' equity 53,415 58,415
--------- ---------
Total liabilities and shareholders' equity $ 96,160 $ 101,826
========= =========
</TABLE>
See referenced notes attached.
5
<PAGE>
DATA SYSTEMS & SOFTWARE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1998
(dollars in thousands except per share data)
Pro Forma
As Reported Adjustments Pro Forma
Sales:
Products $ 6,765 $ (783)(8) $ 5,982
Services 4,862 4,862
-------- --------
11,627 10,844
-------- --------
Cost of sales:
Products 5,797 (357)(8) 5,440
Services 3,402 3,402
-------- --------
9,199 8,842
-------- --------
Gross profit 2,428 2,002
Selling, general and administrative expenses 5,097 (1,622)(8) 3,475
-------- --------
Operating loss (2,669) (1,473)
Other income, net 14 14
-------- --------
Loss before income taxes (2,655) (1,459)
Income taxes 23 (9) 23
-------- --------
Loss after income taxes (2,678) (1,482)
Minority interests 414 414
Loss in affiliates (605) (605)
-------- --------
Net loss $ (2,869) $ (1,673)
======== ========
Basic net loss per share $ (0.39) $ (0.23)
======== ========
Weighted average number of shares
outstanding (in thousands) 7,369 7,369
======== ========
See referenced notes attached
6
<PAGE>
Notes to Pro Forma Financial Statements Adjustments
1. Adjustment to reflect net cash received by Company in relation to sale of
PHD
2. Adjustment to record sale of accounts receivable
3. Adjustment to reflect reduction in current assets related to PHD
4. Adjustment to reflect sale of net depreciable assets
5. Adjustment to record cost of PHD sale less reduction in PHD liabilities
6. Adjustment to record cost of PHD sale
7. Adjustment to record gain on sale of PHD
8. Adjustment to reflect reduction of revenue and related costs as if sale of
PHD occurred on January 1, 1997
9. No adjustment to income taxes reflected due to capital loss carryforward
(c) Exhibits.
1. Sales agreement between Data Systems & Software Inc. and Computer
Associates International, Inc. (previously filed May 5, 1998).
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<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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, in the Township of
Mahwah, State of New Jersey, on June 9, 1998.
DATA SYSTEMS & SOFTWARE INC.
BY: /s/ GEORGE MORGENSTERN
--------------------------------
GEORGE MORGENSTERN
Chairman of the Board, President
and Chief Executive Officer
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