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Previous: DECRANE AIRCRAFT HOLDINGS INC, 8-K/A, 1999-12-14 |
Next: MUNIYIELD NEW YORK INSURED FUND INC, 497J, 1999-12-14 |
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 2 ON
FORM 8-K/A
TO
CURRENT REPORT ON FORM 8-K
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) August 30, 1999
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
================================================================================
<PAGE>
This Amendment No. 2 on Form 8-K/A amends "Item 7(b) Pro Forma Financial
Information" of the Registrant's Report on Form 8-K filed on September 9, 1999
reporting the acquisition ("Acquisition") by the Registrant's Comverge
Technologies, Inc. subsidiary of assets of the Control Systems Business Unit of
Scientific-Atlanta, Inc., as amended by Amendment No. 1 filed on November 12,
1999. The amendment reflects certain corrections and certain modifications to
the presentation of such pro forma financial information.
Item 7. Financial Statements and Exhibits.
(b) Pro Forma Financial Information.
The following unaudited pro forma condensed consolidated statements of
operations of the Registrant for the year ended December 31, 1998 and the six
months ended June 30, 1999 assume the Acquisition occurred on January 1, 1998.
The following unaudited condensed consolidated pro forma balance sheet as of
June 30, 1999 assumes that the Acquisition occurred on June 30, 1999.
The unaudited pro forma condensed consolidated financial statements
presented herein are based on the historical financial statements of the
Registrant included with the Registrant's Annual Report on Form 10-K for the
year ended December 31, 1998 and the Registrant's Quarterly Reports on Form 10-Q
for the six months ended June 30, 1999 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 Acquisition had occurred on the date specified, nor are they indicative of
the Registrant's future operating results.
<PAGE>
DATA SYSTEMS & SOFTWARE INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
JUNE 30, 1999
(in thousands, except per share data)
<TABLE>
<CAPTION>
Acquisition of Pro Forma
Historical Control Systems Adjustments Pro Forma
---------- --------------- ----------- ---------
<S> <C> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 969 $ 969
Trade accounts receivable, net 7,255 7,255
Inventory 581 $ 1,862 2,443
Other current assets 1,098 1,098
-------------- -------------- --------------
Total current assets 9,903 1,862 11,765
-------------- -------------- --------------
Investments 50,967 50,967
-------------- --------------
Property and equipment, net 1,499 1,810 3,309
-------------- -------------- --------------
Other assets 3,601 509 4,110
-------------- -------------- --------------
$ 65,970 $ 4,181 $ 70,151
============== ============== ===============
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable, accrued expenses
and short-term debt $ 8,209 $ 3,431 (1) $ 11,640
Other current liabilities 980 750 (2) 1,730
-------------- -------------- --------------
Total current liabilities 9,189 4,181 13,370
-------------- -------------- --------------
Long-term liabilities 554 554
-------------- --------------
Minority interests 22,535 22,535
-------------- --------------
Shareholders' equity:
Common stock -- $.01 par value per share:
Authorized 20,000 shares; Issued 7,923 shares 79 79
Additional paid-in capital 35,024 (3) 35,027
Retained earnings 954 954
-------------- --------------
36,057 36,060
Treasury stock, at cost -- 490 shares (2,365) (2,365)
-------------- --------------
Total shareholders' equity 33,692 33,695
-------------- -------------- --------------
Total liabilities and shareholders' equity $ 65,970 $ 4,181 $ 70,154
============== ============== ==============
</TABLE>
See referenced notes attached.
<PAGE>
DATA SYSTEMS & SOFTWARE INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999
(in thousands, except per share data)
<TABLE>
<CAPTION>
Acquisition of Pro Forma
Historical Control Systems Adjustments Pro Forma
---------- --------------- ------------- ---------
<S> <C> <C> <C> <C>
Sales:
Products $ 2,419 $ 4,137 $ 6,556
Services 5,257 5,257
------------- ------------ -------------
7,676 4,137 11,813
------------- ------------ -------------
Cost of sales:
Products 2,032 4,378 6,410
Services 3,878 3,878
------------- ------------ -------------
5,910 4,378 10,288
------------- ------------ -------------
Gross profit 1,766 (241) 1,525
Research and development expenses 309 8 317
Selling, general and administrative expenses 2,790 976 $ 190 (4) 3,956
------------- ------------ -------------
Operating loss (1,333) (1,225) (2,748)
Other expenses, net 13 18 181 (5) 212
------------- ------------ -------------
Loss before income taxes (1,346) (1,243) (2,960)
Provision for income taxes 37 (6) 37
------------- ------------ -------------
Loss after income taxes (1,383) (1,243) (2,997)
Minority interests 18 18
Loss in affiliates, net of minority interests (1,513) (1,513)
------------- ------------ ------- -------------
Net loss $ (2,878) $ (1,243) $ 371 $ (4,492)
============= ============ ======= =============
Basic and diluted net loss per share $ (0.39) $ (0.60)
============= =============
Weighted average number of shares
outstanding (in thousands) 7,433 7,433
============= =============
</TABLE>
See referenced notes attached.
<PAGE>
DATA SYSTEMS & SOFTWARE INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1998
(in thousands, except per share data)
<TABLE>
<CAPTION>
Acquisition of Pro Forma
Historical Control Systems Adjustments Pro Forma
---------- --------------- ----------- ---------
<S> <C> <C> <C> <C>
Sales:
Products $ 18,062 $ 11,351 $ 29,413
Services 19,433 19,433
------------ -------------- ------------
37,495 11,351 48,846
------------ -------------- ------------
Cost of sales:
Products 14,306 11,903 26,209
Services 14,869 14,869
------------ -------------- ------------
29,175 11,903 41,078
------------ -------------- ------------
Gross profit 8,320 (552) 7,768
Research and development expenses 1,605 2,590 4,195
Selling, general and administrative expenses 14,303 2,831 $ 379 (4) 17,513
------------ -------------- ------------
Operating loss (7,588) (5,973) (13,940)
Gain on sale of division 5,998 5,998
Loss from contingent performance
of bank guarantees for affiliate (1,135) (1,135)
Unrealized loss from writedown of investment (6,103) (6,103)
Other expenses, net (1,102) (4) 658 (5) (1,764)
------------ -------------- ------------
Loss before income taxes (9,930) (5,977) (16,944)
Provision for income taxes 35 (6) 35
------------ -------------- ------------
Loss after income taxes (9,965) (5,977) (16,979)
Minority interests 929 929
Loss in affiliates, net of minority interests (3,908) (3,908)
------------ -------------- -------- ------------
Net loss $ (12,944) $ (5,977) $ 1,037 $ (19,958)
============ ============== ======== ============
Basic net loss per share $ (1.75) $ (2.70)
============ ============
Weighted average number of shares
outstanding (in thousands) 7,391 7,391
============ ============
</TABLE>
See referenced notes attached.
<PAGE>
DATA SYSTEMS & SOFTWARE INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands)
Notes to Pro Forma Financial Statements
(1) Increase in short term bank debt and accounts payable to finance
Acquisition.
(2) Balance due to seller.
(3) The $318 value attributed to the warrants issued to lender for nominal
consideration in connection with loan to finance Acquisition will be
amortized to paid-in-capital over the term of the loan.
(4) Depreciation and amortization of tangible and intangible assets assumes
Acquisition occurred on January 1, 1998.
(5) Finance expense on loan to finance Acquisition assumed taken on January 1,
1998. Finance expense for the year ended December 31, 1998 includes $318 of
amortization of deferred interest expense associated with the issuance of
the warrants referred to in Note 3.
(6) As the Registrant establishes a valuation allowance against all deferred
tax assets, no adjustment has been made to reflect any deferred tax benefit
associated with the losses of the acquired business.
<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 December 14, 1999.
DATA SYSTEMS & SOFTWARE INC.
BY: /s/ GEORGE MORGENSTERN
GEORGE MORGENSTERN
Chairman of the Board, President
and Chief Executive Officer
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