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): January 22, 1999
EVTC, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-20986 22-3005943
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
121 S. Norwood Drive, Hurst, Texas 76053
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (732) 370-3400
550 James Street, Lakewood, New Jersey 08701
(Former name or former address, if changed since last report)
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Item 1. Changes in Control of Registrant
Not Applicable
Item 2. Acquisition or Disposal of Assets
Not Applicable
Item 3. Bankruptcy or Receivership
Not Applicable
Item 4. Changes in Registrant's Certifying Accountant
Effective January 22, 1999, the Registrant severed its relationship
with its certifying accountants, KPMG Peat Marwick, LLP ("KPMG"). The action was
recommended and approved by the audit committee of the Registrant.
KPMG's reports on the Registrant's financial statements for the past
two years contained no adverse opinion or disclaimer of opinion, and was not
qualified as to uncertainty, audit scope or accounting principles.
During the most recent two fiscal years and any of the subsequent
interim periods preceding January 22, 1999, there were no disagreements between
the Registrant and KPMG on any matters of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure, which
disagreements, if not resolved to the satisfaction of KPMG, would have caused it
to make a reference to the subject matter of the disagreements in connection
with its reports on the financial statements for such years, except as follows:
There was a disagreement with KPMG concerning the amount of the
valuation allowance for deferred tax assets at September 30, 1998.
Discussions took place between KPMG and the audit committee of the
Registrant. The dispute was resolved to KPMG's satisfaction and a
valuation allowance of one hundred percent was recorded on the books of
the Registrant. KPMG has stated that if the valuation allowance had not
been recorded, its report on the Registrant's 1998 consolidated
financial statements would have been modified. The Registrant has not
restricted KPMG from responding fully to the inquiries of any successor
accountant concerning the subject matter of the disagreement.
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None of the "reportable events" described in Item 304(a)(1)(ii) of
Regulation S-K occurred with respect to the Registrant during the most recent
two fiscal years and any of the subsequent
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interim periods preceding January 22, 1999.
The Registrant provided KPMG with a copy of this report no later than the
date this report was filed with the Securities and Exchange Commission and has
requested that KPMG furnish it with the letter described in Item 304(a)(3) of
Regulation S-K. Pursuant to Item 304 (a) (3) of Regulation S-K a copy of the
letter from KPMG to the Securities and Exchange Commission is filed as Exhibit
16 hereto. The Registrant disagrees with such letter from KPMG to the Securities
and Exchange Commission in that the filed copy of the original Form 8-K which
was filed on or about February 1, 1999 did not differ substantially from the
Form 8-K furnished to KPMG on or about January 29, 1999.
Item 5. Other Events
Not Applicable
Item 6. Resignation of Registrant's Directors
Not Applicable
Item 7. Financial Statements and Exhibits
(a) Financial statements of business acquired.
Not Applicable
(b) Pro forma financial information
Not Applicable
(c) Exhibits
16 - Letter from KPMG dated February 5, 1999 pursuant to Item 304
(a)(3) of Regulation S-K.
SIGNATURE
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.
EVTC, INC.
By: /s/ David Keener
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David Keener
Chief Financial Officer
Dated: February 16, 1999
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EXHIBIT 16
KPMG
200 Crescent Court
Suite 300
Dallas, TX 75201-1885
Telephone 214 754 2000
Fax 214 754 2297
February 5, 1999
Securities and Exchange Commission
Washington, D.C. 20549
Ladies and Gentlemen:
We were previously principal accountants for EVTC, Inc. and, under the date of
January 5, 1999, we reported on the consolidated financial statements of EVTC,
Inc. and subsidiaries as of September 30, 1998 and 1997 and for each of the
years in the three year period ended September 30, 1998. On January 22, 1999,
our appointment as principal accountants was terminated. We have read EVTC
Inc.'s statements included under Item 4 of its Form 8-K dated January 22, 1999.
We disagree with the statement that "The Registrant provided KPMG with a copy of
this report no later than the date this report was filed with the Securities and
Exchange Commission" because we received only an incomplete draft of the current
report on Form 8-K and did not receive the current report on Form 8-K actually
filed on or about February 1, 1999, until February 4, 1999. With respect to the
other statements included therein, we agree with such statements, except that we
are not in a position to agree or disagree with EVTC Inc.'s statement that the
action was recommended and approved by the audit committee
Very truly yours,
KPMG LLP
