<PAGE> 1
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
----- THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
----- THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
----- -----
COMMISSION FILE NUMBER 0-22718
ZAMBA CORPORATION
(Exact name of Registrant as specified in its charter)
DELAWARE #41-1636021
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7301 OHMS LANE, SUITE 200, MINNEAPOLIS, MINNESOTA 55439
(Address of principal executive offices, including zip code)
(612) 832-9800
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Outstanding at
Class August 4, 2000
----- --------------
Common Stock, $0.01 par value 31,578,692
================================================================================
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ZAMBA CORPORATION
INDEX
PART I -- Financial Information
<TABLE>
<CAPTION>
Item 1. Financial Statements (Unaudited) Page No.
--------
<S> <C> <C>
Consolidated Statements of Operations for the
Three and Six Months Ended June 30, 2000 and 1999 3
Consolidated Balance Sheets as of
June 30, 2000 and December 31, 1999 4
Consolidated Statements of Cash Flows for the
Six Months Ended June 30, 2000 and 1999 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 7
Item 3. Not Applicable
PART II -- Other Information
Items 1-3. None 13
Item 4. Submission of Matters to a Vote of Security Holders 13
Item 5. None 13
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
ZAMBA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
<TABLE>
<CAPTION>
For the three months ended For the six months ended
June 30, June 30,
------------------------------ ---------------------------
2000 1999 2000 1999
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Net revenues $9,715 $7,007 $17,932 $12,357
Costs and expenses:
Project and personnel costs 4,775 3,767 9,090 6,855
Sales and marketing 1,133 551 2,188 1,123
General and administrative 3,363 2,466 6,130 4,254
Amortization of intangibles and
non-cash compensation 1,008 944 2,025 1,897
------------ ------------ ------------ -----------
Loss from operations (564) (721) (1,501) (1,772)
Other income (expense):
Interest income 57 20 131 44
Interest expense (16) (26) (39) (54)
------------ ------------ ------------ -----------
41 (6) 92 (10)
Net loss ($523) ($727) ($1,409) ($1,782)
============ ============ ============ ===========
Net loss per share - basic and diluted ($0.02) ($0.02) ($0.04) ($0.06)
============ ============ ============ ===========
Weighted average shares outstanding 31,490 30,656 31,398 30,401
============ ============ ============ ===========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
3
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ZAMBA CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share data)
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
--------------- -------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $5,112 $7,973
Accounts receivable, net 5,734 3,659
Unbilled receivables 497 274
Notes receivable - related parties 757 3
Prepaid expenses and other current assets 543 242
--------------- -------------
Total current assets 12,643 12,151
Property and equipment, net 1,145 1,068
Restricted cash - 110
Intangible assets, net 1,221 3,111
Other assets 308 71
--------------- -------------
Total assets $15,317 $16,511
=============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Current installments of long-term debt $499 $573
Accounts payable 1,654 1,079
Accrued expenses 1,602 3,029
Deferred revenue 1,331 763
--------------- -------------
Total current liabilities 5,086 5,444
Long-term debt, less current installments 608 816
--------------- -------------
Commitments
Total liabilities 5,694 6,260
--------------- -------------
Stockholders' equity:
Common stock, $0.01 par value, 55,000 shares authorized,
31,569 and 31,110 issued and outstanding at June 30, 2000
and December 31, 1999, respectively 316 311
Additional paid-in capital 80,676 79,900
Accumulated deficit (71,369) (69,960)
--------------- -------------
Total stockholders' equity 9,623 10,251
--------------- -------------
Total liabilities and stockholders' equity $15,317 $16,511
=============== =============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
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ZAMBA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
(In thousands) Six Months Ended
June 30,
-------------------------------------
2000 1999
------------ -------------
<S> <C> <C>
Cash flows from operating activities:
Net loss ($1,409) ($1,782)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 2,482 2,274
Provision for bad debts 324 79
Changes in operating assets and liabilities:
Accounts receivable (2,399) (1,998)
Unbilled receivables (223) (110)
Prepaid expenses and other assets (538) 62
Accounts payable 575 695
Accrued expenses (1,427) 1,064
Deferred revenue 568 1,769
------------ -------------
Net cash provided by (used in) operating activities (2,047) 2,053
Cash flows from investing activities:
Purchase of property and equipment (535) (488)
Notes receivable (754) -
Other - (70)
------------ -------------
Net cash used in investing activities (1,289) (558)
Cash flows from financing activities:
Proceeds from exercises of stock options and warrants 647 111
Proceeds of long-term debt - 70
Payments of long-term debt (282) (92)
Change in restricted cash 110 -
Dividends - (18)
------------ -------------
Net cash provided by financing activities 475 71
------------ -------------
Net increase (decrease) in cash and cash equivalents (2,861) 1,566
Cash and cash equivalents, beginning of period 7,973 3,054
------------ -------------
Cash and cash equivalents, end of period $5,112 $4,620
============ =============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
5
<PAGE> 6
ZAMBA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note A. Basis of Presentation:
The unaudited consolidated financial statements of ZAMBA Corporation ("ZAMBA" or
the "Company") as of June 30, 2000, and for the three and six month periods
ended June 30, 2000, and 1999, reflect, in the opinion of management, all
adjustments (which include only normal recurring adjustments) necessary to
fairly state our financial position as of June 30, 2000, and our results of
operations and cash flows for the reported periods. The results of operations
for any interim period are not necessarily indicative of the results to be
expected for any other interim period or for the full year. The year-end balance
sheet data was derived from audited financial statements, but does not include
all disclosures required by generally accepted accounting principles. Certain
prior year amounts have been reclassified to conform with the 2000 presentation.
These financial statements should be read in conjunction with our audited
consolidated financial statements and related notes for the year ended December
31, 1999, which were included in our 1999 Report on Form 10-K.
Note B. Net Loss per Share:
We incurred net losses for the three and six month periods ended June 30, 2000
and 1999, and excluded assumed conversion shares from the diluted loss per share
computation, because their effect is anti-dilutive. At June 30, 2000, we had
8,968,052 stock options outstanding, which may be dilutive in future periods.
Note C. Selected Balance Sheet Information:
<TABLE>
<CAPTION>
(in thousands) June 30, 2000 December 31, 1999
------------------- -------------------
<S> <C> <C>
Accounts receivable, net:
Accounts receivable $6,236 $3,949
Less allowance for doubtful accounts (502) (290)
------------------- -------------------
$5,734 $3,659
=================== ===================
Property and equipment, net:
Computer equipment $3,123 $2,924
Furniture and equipment 992 822
Leasehold improvements 352 186
------------------- -------------------
4,467 3,932
Less accumulated depreciation and
amortization (3,322) (2,864)
------------------- -------------------
$1,145 $1,068
=================== ===================
</TABLE>
6
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
OVERVIEW
ZAMBA is a national customer care consulting company. According to the Gartner
Group, customer care is expected to grow at a cumulative average growth rate of
54% per year through 2002. Our services are designed to assist clients in
building lasting relationships with customers, increase the effectiveness of
customer service and sales operations, and improve overall communication with
customers. We deliver our services using a unique combination of accumulated
expertise in the customer care field, existing technology, and client knowledge.
We perform our services on both a fixed-bid, fixed-timetable and time and
material basis. Rapid development and significant client involvement are key
aspects to our methodologies. We offer our clients end-to-end assistance with
their implementations, including business case evaluation, system planning and
design, software implementation, modification and development, training,
installation, change management, network management, and post-implementation
support. Our services include the design, implementation and integration of
enterprise level applications to facilitate sales automation, call center
management, marketing automation and automated field service and sales. We also
own approximately 30% of the equity in NextNet Wireless, Inc., a private
corporation engaged in the development of wireless data products targeted at
wireless DSL. The chairman of ZAMBA, Joseph B. Costello, is also the chairman of
NextNet Wireless, Inc.
We currently derive most of our revenue from systems integration services
including business case evaluation, system planning and design, software package
implementation, custom software development, training, installation, change
management, and post-implementation support.
Our revenues and earnings may fluctuate from quarter to quarter based on the
number, size and scope of projects in which we are engaged, the contractual
terms and degree of completion of such projects, any delays incurred in
connection with a project, employee utilization rates, the adequacy of
provisions for losses, the accuracy of estimates of resources required to
complete ongoing projects, and general economic conditions and other factors.
Also, revenues from a large client may constitute a significant portion of our
total revenues in any particular quarter.
RESULTS OF OPERATIONS
Historical results have been restated to reflect our acquisitions of Camworks,
Inc.("Camworks") on December 27, 1999, and Fusion Consulting, Inc. ("Fusion") on
January 7, 2000. Both acquisitions are accounted for using the
pooling-of-interests method.
THREE MONTHS ENDED JUNE 30, 2000, COMPARED TO THE THREE MONTHS ENDED JUNE 30,
1999
Net Revenues
Net revenues increased 39% to $9.72 million in 2000 compared to $7.01 million in
1999. The increase in revenues is principally due to increases in both the
average size and number of client projects and due to an increase in the number
of billable consultants.
7
<PAGE> 8
Project and Personnel Costs
Project and personnel costs consist primarily of salaries and employee benefits
for personnel dedicated to client projects and direct expenses incurred to
complete projects that were not reimbursed by the client. These costs represent
the most significant expense ZAMBA incurs in providing its services. Project
costs were $4.78 million or 49% of net revenues in the second quarter of 2000
compared to $3.77 million or 54% in the second quarter of 1999. The 27% increase
in dollar terms was primarily due to the increase in project personnel. Project
personnel increased as a result of the increased number and size of our
engagements. The decline in project and personnel costs as a percentage of
revenue is due to increased realized rates on projects. We expect project and
personnel costs to increase on a dollar basis throughout 2000.
Sales and Marketing
Sales and marketing expenses were $1.13 million or 12% of net revenues in 2000
compared to $551,000 or 8% of net revenues in 1999. The increase in dollar and
percentage terms is due to the hiring of additional direct sales personnel. We
expect the amount spent for sales and marketing costs to continue to increase
over the next few quarters.
General and Administrative
General and administrative costs consist primarily of expenses associated with
our management, finance, human resources, information technology, and
administrative groups, including occupancy costs. General and administrative
expenses were $3.36 million or 35% of net revenues in 2000 compared to $2.47
million or 35% of net revenues in 1999. The increase in dollar terms is
primarily due to an increase in non-billable headcount which is necessary to
develop our infrastructure to support our anticipated growth. We also increased
our allowance for outstanding accounts receivable as we continue to increase our
customer base and revenue to cover for any potentially uncollectable accounts.
We anticipate general and administrative costs to increase on a dollar basis
over the next several quarters as we continue to grow and expand, which will
include entering new and larger facilities and improving our technology
infrastructure in order to support our anticipated revenue and headcount growth.
Amortization of Intangibles and Non-cash Compensation
Amortization of intangibles and non-cash compensation was $1.01 million in 2000
compared to $944,000 in 1999. The amortization is mainly due to the acquisition
of The QuickSilver Group ("QuickSilver") in September 1998. The acquisition was
accounted for using the purchase method of accounting and the purchase price was
allocated to tangible and identifiable intangible assets. The fair value of
identifiable intangible assets was $7.70 million and was allocated to the
following categories: people and experiences, client references, client lists,
and intellectual property and delivery methodology. These amounts are being
amortized over economic useful lives of between two and four years.
Approximately 97% of the costs related to the QuickSilver acquisition will be
amortized by September 30, 2000.
The increase from second quarter 1999 is also due to non-cash compensation from
stock options granted to non-shareholder employees of Camworks and Fusion
subsequent to our acquisitions of each company. The options were granted with an
exercise price less than fair market value as a means of incenting the employees
to continue employment with ZAMBA. The remaining deferred compensation balance
related to these options is $804,000 as of June 30, 2000. The amount of this
charge will be approximately $57,000 per quarter for each quarter through 2003.
8
<PAGE> 9
Interest Income
Interest income was $57,000 in 2000 compared to $20,000 in 1999. The increase is
due to increases in our cash and investment accounts, which were provided by
operating and financing activities. Also, additional interest income was
provided in 2000 from outstanding notes receivable.
Interest Expense
Interest expense was $16,000 in 2000 compared to $26,000 in 1999. The interest
charges are due to debt acquired as a result of the acquisition of QuickSilver
and interest charges accrued for future payments of the notes payable issued in
connection with the acquisition of QuickSilver. As the debt continues to be paid
down, the amount of interest expense is expected to decline.
Income Taxes
Income tax expense was $0 in 2000 and 1999 due to operating losses in both
years.
Net Loss
As a result of the above, the net loss for 2000 was $523,000, or ($0.02) per
share, compared to a net loss for 1999 of $727,000, or ($0.02) per share.
SIX MONTHS ENDED JUNE 30, 2000, COMPARED TO THE SIX MONTHS ENDED JUNE 30, 1999
Net Revenues
Net revenues increased 45% to $17.93 million in 2000 compared to $12.36 million
in 1999. The increase in revenues is principally due to increases in both the
average size and number of client projects and due to an increase in the number
of billable consultants.
Project and Personnel Costs
Project and personnel costs consist primarily of salaries and employee benefits
for personnel dedicated to client projects and direct expenses incurred to
complete projects that were not reimbursed by the client. These costs represent
the most significant expense ZAMBA incurs in providing its services. Project
costs were $9.09 million or 51% of net revenues in 2000 compared to $6.86
million or 55% in 1999. The increase in dollar terms was primarily due to the
increase in project personnel. Project personnel increased as a result of the
increased number and size of our engagements. The decline in project and
personnel costs as a percentage of revenue is due to increased realized rates on
projects. We expect project and personnel costs to increase on a dollar basis
throughout 2000 in order to deliver revenue growth from customer-centric
solutions.
Sales and Marketing
Sales and marketing expenses were $2.19 million or 12% of net revenues in 2000
compared to $1.12 million or 9% of net revenues in 1999. The increase in dollar
and percentage terms is due to the hiring of additional direct sales personnel.
We expect the amount spent for sales and marketing costs to continue to increase
over the next few quarters as we continue to grow our staff and pay commissions
for the expected increase in revenue.
General and Administrative
General and administrative costs consist primarily of expenses associated with
our management, finance, human resources, information technology, and
administrative groups, including occupancy costs. General and administrative
expenses were $6.13 million or 34% of net revenues in 2000 compared to $4.25
million
9
<PAGE> 10
or 34% of net revenues in 1999. The increase in dollar terms is primarily due to
an increase in non-billable headcount which is necessary to develop our
infrastructure to support our anticipated growth. We anticipate general and
administrative costs to increase on a dollar basis over the next several
quarters as we continue to grow and expand, which will include entering new and
larger facilities and improving our technology infrastructure in order to
support our anticipated revenue and headcount growth.
Amortization of Intangibles and Non-cash Compensation
Amortization of intangibles and non-cash compensation was $2.03 million in 2000
compared to $1.90 million in 1999. The amortization is mainly due to the
acquisition of The QuickSilver Group ("QuickSilver") in September 1998. The
acquisition was accounted for using the purchase method of accounting and the
purchase price was allocated to tangible and identifiable intangible assets. The
fair value of identifiable intangible assets was $7.70 million and was allocated
to the following categories: people and experiences, client references, client
lists, and intellectual property and delivery methodology. These amounts are
being amortized over economic useful lives of between two and four years.
Approximately 97% of the costs related to the QuickSilver acquisition will be
amortized by September 30, 2000.
The increase from 1999 is also due to non-cash compensation from stock options
granted to non-shareholder employees of Camworks and Fusion subsequent to our
acquisitions of each company. The options were granted with an exercise price
less than fair market value as a means of incenting the employees to continue
employment with ZAMBA. The remaining deferred compensation balance related to
these options is $804,000 as of June 30, 2000. The amount of this charge will be
approximately $57,000 per quarter for each quarter through 2003.
Interest Income
Interest income was $131,000 in 2000 compared to $44,000 in 1999. The increase
is due to increases in our cash and investment accounts, which were provided by
operating and financing activities. Also, additional interest income was
provided in 2000 from outstanding notes receivable.
Interest Expense
Interest expense was $39,000 in 2000 compared to $54,000 in 1999. The interest
charges are due to debt acquired as a result of the acquisition of QuickSilver
and interest charges accrued for future payments of the notes payable issued in
connection with the acquisition of QuickSilver. As the debt continues to be paid
down, the amount of interest expense is expected to decline.
Income Taxes
Income tax expense was $0 in 2000 and 1999 due to operating losses in both
years.
Net Loss
As a result of the above, the net loss for 2000 was $1,409,000, or ($0.04) per
share, compared to a net loss for 1999 of $1,782,000, or ($0.06) per share.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2000, we had no significant capital spending or purchase
commitments and had cash and cash equivalents totaling $5.11 million and working
capital of $7.56 million. During the first six months of 2000, we issued notes
receivable to four employees totaling $754,000, which are still outstanding as
of June 30, 2000. For the six months ended June 30, 2000, $2.12 million was used
in operating activities compared
10
<PAGE> 11
to the $2.05 million provided by operating activities in the same period in
1999. The decrease in cash provided from operating activities is due to an
increase in accounts receivable, and a decrease in accrued expenses and deferred
revenue. We believe our existing capital resources will be sufficient to meet
our capital requirements in 2000.
NEW ACCOUNTING STANDARDS
Statement of Financial Accounting Standard No. 133 "Accounting for Derivative
Instruments and Hedging Activities" (SFAS No. 133), effective in 2001,
establishes new standards for recognizing all derivatives as either assets or
liabilities, and measuring those instruments at fair value. We have no
derivative financial instruments. At the present time, we do not anticipate that
SFAS No. 133 will have a material impact on the financial position or results of
operations.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We have debt at a fixed interest rate ranging from 6.0% to 10.0%, as described
in Item 7A in the 1999 Report on Form 10-K. There has been no material change to
this information.
FACTORS THAT MAY AFFECT FUTURE RESULTS
Certain statements in this Report on Form 10-Q are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 and
involve known and unknown risks, uncertainties and other factors that may cause
our actual results, performance or achievements to be materially different from
the results, performance or achievements expressed or implied by the forward
looking statements. Factors that impact such forward looking statements include,
among others, the growth rate of the Customer Care marketplace, the ability of
our partners to maintain competitive products, our ability to develop skills in
implementing Customer Care packages from additional partners, the impact of
competition and pricing pressures from actual and potential competition with
greater financial resources, our ability to obtain large-scale consulting
services agreements, changes in expectations regarding the information
technology industry, our ability to hire and retain competent employees,
possible changes in collections of accounts receivable, changes in general
economic conditions and interest rates, and other factors identified in our
filings with the Securities and Exchange Commission.
When used in this Report on Form 10-Q, the words "may," "should," "expects,"
"plans," "anticipates," "believes," "estimates," "predicts," "intend,"
"potential," or "continue" and similar expressions are generally intended to
identify forward-looking statements. Because these forward-looking statements
involve risks and uncertainties, actual results could differ materially from
those expressed or implied by these forward-looking statements. ZAMBA
Corporation assumes no obligation to update any forward-looking statements.
These statements are only predictions. Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, and/or performance of achievements.
There can be no assurance that our business will grow as anticipated or that we
will achieve or sustain profitability on a quarterly or annual basis in the
future. We derive a substantial part of our revenues from a small number of
clients whom, after evaluating our capabilities, decide whether to engage us to
create business case evaluations, consult on change management practices and, in
some cases, to design, implement and deploy their customer care systems. A
decision by any one of these clients to delay a customer care project may have a
material adverse effect on our business and results of operations.
11
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In order for our revenues from consulting and integration services to grow, we
must continue to add more clients and larger projects to plan, design and
implement customer care systems. Inability to obtain clients for large-scale
consulting and integration services could materially and adversely affect the
growth of its business.
In addition to the factors listed above, actual results could vary materially
from the foregoing forward-looking statements due to our inability to hire and
retain qualified personnel, the risk that we may need to enhance products and
services beyond what is currently planned, the levels of promotion and marketing
required to promote our products and services so as to attain a competitive
position in the marketplace, or other risks and uncertainties identified in this
Quarterly Report and our other filings with the SEC.
12
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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
Zamba held its Annual Meeting on May 18, 2000. Three proposals were
presented at the Annual Meeting for voting by the stockholders: (i) the election
of directors; (ii) the approval of the Zamba Corporation 2000 Employee Stock
Purchase Plan; and (iii) the ratification of KPMG LLP as Zamba's independent
auditors for 2000. The stockholders approved each proposal.
Each person nominated for director was elected. For Joseph B. Costello,
25,783,842 votes were cast in favor of his election, and 146,614 votes were cast
against. For Dixon R. Doll, 25,885,969 votes were cast in favor of his election,
and 44,487 votes were cast against. For Paul D. Edelhertz, 25,773,669 votes were
cast in favor of his election, and 156,787 votes were cast against. For Todd
Fitzwater, 25,783,969 votes were cast in favor of his election, and 146,487
votes were cast against. For John Olsen, 25,875,719 votes were cast in favor of
his election, and 54,737 votes were cast against. For Sven A. Wehrwein,
25,875,819 votes were cast in favor of his election, and 54,637 votes were cast
against.
25,583,375 votes were cast in favor of the proposal to approve the Zamba
Corporation 2000 Employee Stock Purchase Plan, 289,059 votes were cast against,
61,022 votes were abstentions, and there were no broker non-votes. 25,894,625
votes were cast in favor of ratifying the appointment of KPMG LLP as independent
auditors for fiscal year 2000, 15,822 votes were cast against, 20,009 votes were
abstentions, and there were no broker non-votes.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits (see attached exhibit index)
(b) Reports on Form 8-K: None
13
<PAGE> 14
SIGNATURES
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 thereunto duly authorized.
ZAMBA CORPORATION
By: /s/ Paul D. Edelhertz
-----------------
Paul D. Edelhertz
President and Chief Executive Officer
By: /s/ Michael H. Carrel
-----------------
Michael H. Carrel
Vice President and Chief Financial Officer
Dated: August 14, 2000
14
<PAGE> 15
EXHIBIT INDEX
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
EXHIBIT NUMBER TITLE
-------------------------------------------------------------------------------------
<S> <C>
10.01 Lease Agreement dated May 5, 2000, between the Registrant and
Harvard Property (Lake Calhoun), LP
-------------------------------------------------------------------------------------
10.02 Lease Agreement dated May 31, 2000, between the Registrant and
EOP-New England Executive Park, LCC
-------------------------------------------------------------------------------------
27 Financial Data Schedule
-------------------------------------------------------------------------------------
</TABLE>
15
