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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): August 3, 1999
TREEV, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-22970 54-1590649
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification Number)
500 Huntmar Park Drive, Herndon, Virginia 20170
(Address of principal executive offices) (Zip code)
(703) 478-2260
(Registrant's telephone number, including area code)
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<PAGE>
Item 5. Other Events.
On August 3, 1999, TREEV, Inc. (the "Company") issued a press release
announcing that Thomas A. Wilson has been promoted to Chief Executive Officer.
The release also states that Jorge R. Forgues will be leaving his position as
Senior Vice President and Chief Financial Officer for personal reasons, but will
continue to work with the senior management team in a consulting capacity. Brian
H. Hajost has been promoted to Executive Vice President of Finance and
Administration, and Mark A. Paiewonsky has become Vice President of Finance. The
Company also announced in that release that it has retained Banc of America
Securities LLC as its strategic advisor.
A copy of the press release appears as Exhibit 99.1 to this Report and
is incorporated herein by reference.
On August 3, 1999, the Company issued a press release announcing its
financial results for the second quarter of its fiscal year 1999.
A copy of the press release appears as Exhibit 99.2 to this Report and
is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
The following are filed as Exhibits to this Report:
Exhibit Number Description
99.1 Press Release dated August 3, 1999.
99.2 Press Release dated August 3, 1999.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, TREEV, Inc.
has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
TREEV, INC.
Date: August 3, 1999 By: /s/ Thomas A. Wilson
---------------------
Thomas A. Wilson
President and Chief Executive Officer
Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACTS:
Investor Relations
------------------
Brian Hajost
Executive Vice President,
Finance and Administration
Phone: (703) 904-3185
Email: [email protected]
Public Relations
----------------
Tony Cook
Vice President
Marketing
Phone: (703) 904-3112
Email: [email protected]
TREEV(R) REALIGNS SENIOR MANAGEMENT TEAM
--Thomas A. Wilson Promoted To Chief Executive Officer--
HERNDON, VA--August 3, 1999, TREEV, Inc. (NASDAQ/NMS:TREV), a leader in
delivering integrated document and content management solutions, today announced
the realignment of its senior management team. Thomas A. Wilson has been named
Chief Executive Officer reporting to James J. Leto who remains TREEV's Chairman
of the Board. Mr. Wilson joined TREEV in September 1998 as President and Chief
Operating Officer.
"The promotion of Tom Wilson to Chief Executive Officer reflects Tom's
demonstrated ability to lead TREEV," according to Jim Leto, "His accomplishments
have included refocusing our sales strategies and channels, galvanizing research
and development efforts, and strengthening the Company's marketing initiatives.
Tom is clearly the best choice to take TREEV into the future."
Brian H. Hajost has been promoted to Executive Vice President in charge of
Finance and Administration. He has been with the company in various senior
management capacities since March 1996. Reporting to Brian is Mark A.
Paiewonsky, who has been promoted to Vice President of Finance. Mark joined
TREEV in November 1998 as Vice President and Controller. Jorge R. Forgues will
be leaving his position as Senior Vice President and Chief Financial Officer for
personal reasons, but will continue to work with the senior management team at
TREEV in a consulting capacity.
In addition, Banc of America Securities LLC has been retained as TREEV's
strategic advisors.
(more)
<PAGE>
TREEV Realigns Senior Management Team
Page Two of Two
About TREEV
TREEV delivers patented integrated enterprise document and content management
technologies that enables customers and value added resellers to rapidly build
and deploy web-enabled applications to meet their business goals. TREEV's
technologies are exemplified by TREEV 2000, its standards-based component
architecture consisting of DocuTREEV (document management), DataTREEV
(COLD/ERM), AutoTREEV (workflow), and OmniTREEV (content management).
Headquartered in Herndon, Virginia, TREEV employs over 200 technology and
services experts with over 2,000 customer installations worldwide.
For additional information about TREEV's products and services, please call
(800) 254-0994, or visit TREEV's Web site at www.treev.com.
TREEV(R) is a registered trademark and DocuTREEV(TM), DataTREEV(TM),
AutoTREEV(TM) and OmniTREEV(TM) are trademarks of TREEV, Inc. All other products
and brand names are trademarks or registered trademarks of their respective
owners.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of
1995: Except for historical information, all of the statements, expectations and
assumptions contained in the foregoing are forward looking statements that
involve a number of risks and uncertainties. Although the Company has used its
best efforts to be accurate in making these forward looking statements, it is
possible that the assumptions made by management are not necessarily the most
likely and may not materialize. In addition to those factors, other important
factors that could cause actual results to differ materially include the
following: business conditions and the amount of growth in the computer industry
and general economy; competitive factors; ability to attract and retain
personnel, including key management personnel; maintenance of the Company's
Nasdaq listing; the price of the Company's stock; and the risk factors set forth
from time to time in the Company's SEC reports, including but not limited to its
annual report on Form 10-K and its quarterly reports on Forms 10-Q
EXHIBIT 99.2
FOR IMMEDIATE RELEASE CONTACTS:
Investor Relations
------------------
Brian Hajost
Executive Vice President,
Finance and Administration
Phone: (703) 904-3185
Email: [email protected]
Public Relations
----------------
Tony Cook
Vice President
Marketing
Phone: (703) 904-3112
Email: [email protected]
TREEV(R) REPORTS SECOND QUARTER RESULTS
--2Q99 Revenues Increase 37% Over 1Q99--
HERNDON, VA--August 3, 1999, TREEV, Inc. (NASDAQ/NMS:TREV), a leader in
delivering integrated document and content management solutions, today reported
financial results for the second quarter ended June 30, 1999.
Revenues in the second quarter of 1999 increased by more than 14 percent to $8.1
million from $7.1 million in the second quarter of 1998. Revenues in the second
quarter of 1999 increased 37% over revenues in the first quarter of 1999. The
Company's results improved by 60 percent, with a net loss in the second quarter
of 1999 of $1.3 million, or $0.13 per share, compared with a net loss of $3.3
million, or $0.50 per share, for the same period in 1998.
Revenues for the six-month period ended June 30, 1999, revenues increased by 5
percent to $14.0 million from $13.3 million in 1998. Net loss for the six month
period was $3.1 million, or $0.30 per share, versus the net loss of $5.8
million, or $0.94 per share, for the comparable period in 1998.
Commenting on the second quarter performance, TREEV Chairman, Jim Leto said, "We
are encouraged about our significant revenue increase over the first quarter of
this year. Our profit performance this quarter, however, did not achieve the
results we were expecting. This shortfall is attributable to orders from our
major accounts, such as Alltel, Capital Group and Bisys that had a higher
hardware component than expected and customers postponing orders due to their
focus on the Year 2000. Nevertheless, we believe the fundamentals of our core
business remains solid, our reseller channel is gaining momentum and we will
become profitable this year."
(more)
<PAGE>
TREEV Reports Second Quarter Results
Page Two of Two
"We did see encouraging results from our direct and indirect sales
organizations," said Tom Wilson, President and COO. "During the second quarter,
we signed over 65 customer contracts including Comgraphics, Swiss Re, Bank of
the West and Hibernia Bank, and five new business partners including DigiFile,
Data Connect and Bryn Technologies."
TREEV, Inc.'s statements of operations and condensed balance sheets for the
second quarter ended June 30, 1999 are attached to this release.
About TREEV
TREEV delivers patented integrated enterprise document and content management
technologies that enables customers and value added resellers to rapidly build
and deploy web-enabled applications to meet their business goals. TREEV's
technologies are exemplified by TREEV 2000, its standards-based component
architecture consisting of DocuTREEV (document management), DataTREEV
(COLD/ERM), AutoTREEV (workflow), and OmniTREEV (content management).
Headquartered in Herndon, Virginia, TREEV employs over 200 technology and
services experts with over 2,000 customer installations worldwide.
For additional information about TREEV's products and services, please call
(800) 254-0994, or visit TREEV's Web site at www.treev.com.
TREEV(R) is a registered trademark and TREEV 2000(TM), DocuTREEV(TM),
DataTREEV(TM), AutoTREEV(TM) and OmniTREEV(TM) are trademarks of TREEV, Inc. All
other products and brand names are trademarks or registered trademarks of their
respective owners.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of
1995: Except for historical information, all of the statements, expectations and
assumptions contained in the foregoing are forward looking statements that
involve a number of risks and uncertainties. Although the Company has used its
best efforts to be accurate in making these forward looking statements, it is
possible that the assumptions made by management are not necessarily the most
likely and may not materialize. In addition to those factors, other important
factors that could cause actual results to differ materially include the
following: business conditions and the amount of growth in the computer industry
and general economy; competitive factors; ability to attract and retain
personnel, including key management personnel; maintenance of the Company's
NASDAQ listing; the price of the Company's stock; and the risk factors set forth
from time to time in the Company's SEC reports, including but not limited to its
annual report on Form 10-K and its quarterly reports on Forms 10-Q.
<PAGE>
TREEV, INC.
STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended June 30, Six Months Ended June 30,
1999 1998 1999 1998
-------- -------- -------- --------
(Unaudited) (Unaudited)
Revenues:
Products $ 4,802 $ 4,244 $ 7,630 $ 7,795
Services 3,312 2,844 6,404 5,493
-------- -------- -------- --------
8,114 7,088 14,034 13,288
Cost of sales:
Products 2,346 1,846 3,696 3,661
Services 2,080 1,941 4,173 3,786
-------- -------- -------- --------
4,426 3,787 7,869 7,447
Gross margin 3,688 3,301 6,165 5,841
Gross margin % 45% 47% 44% 44%
Sales and marketing 2,776 3,103 5,297 5,837
General and administrative 971 1,075 1,913 2,250
Product development 1,244 965 2,051 1,961
Restructuring costs -- 1,505 -- 1,505
Interest income (expense) (44) 6 (46) (62)
-------- -------- -------- --------
5,035 6,642 9,307 11,615
Net loss (1,347) (3,341) (3,142) (5,774)
Preferred stock dividends (337) (337) (674) (674)
-------- -------- -------- --------
Net loss applicable to
common shares $ (1,684) $ (3,678) $ (3,816) $ (6,448)
Net loss per common share $ (0.13) $ (0.50) $ (0.30) $ (0.94)
Weighted average shares 12,803 7,333 12,777 6,829
<PAGE>
TREEV, INC.
CONDENSED BALANCE SHEETS
(In thousands)
June 30, December 31,
1999 1998
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(unaudited)
ASSETS
Cash and cash equivalents $ 1,741 $ 1,645
Accounts and notes receivable, net 11,311 11,419
Other current assets 1,377 1,401
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Total current asset 14,429 14,465
Other assets 5,035 5,057
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$ 19,464 $ 19,522
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LIABILITIES AND EQUITY
Current liabilities $ 14,878 $ 11,949
Long term-debt 26 43
Stockholders' equity 4,560 7,530
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$ 19,464 $ 19,522
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