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Previous: UNIVERSAL HEIGHTS INC, 10QSB, 1997-09-12 |
Next: OLICOM A S, 6-K, 1997-09-12 |
<PAGE> 1
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) June 30, 1997
------------------------------
PLATINUM SOFTWARE CORPORATION
(Exact name of Registrant as specified in charter)
Delaware 0-20740 33-0277592
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
195 Technology Drive, Irvine, California 92618
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (714) 453-4000
----------------------------
Not Applicable
- --------------------------------------------------------------------------------
(Former name or former address, if changed, since last report)
<PAGE> 2
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(B) PRO FORMA FINANCIAL INFORMATION
The unaudited pro forma combined condensed consolidated financial
statements for Platinum Software Corporation and Clientele Software, Inc.
(including statements of operations for the four years ended June 30, 1997 and
balance sheets as of June 30, 1997) are attached hereto and filed herewith.
The pro forma combined condensed consolidated financial information is
presented for illustrative purposes only and is not necessarily indicative of
the operating results that would have occurred had the acquisition been
consummated at the beginning of the periods presented, nor is it necessarily
indicative of future operating results.
The pro forma combined condensed consolidated financial information
should be read in conjunction with the audited historical consolidated financial
statements and the related notes of Platinum Software Corporation previously
filed and the audited historical financial statements and related notes thereto
of Clientele Software, Inc. previously filed.
2
<PAGE> 3
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 hereunto duly authorized.
PLATINUM SOFTWARE CORPORATION
Date: September 11, 1997 By: /s/ MICHAEL J. SIMMONS
--------------------------
Michael J. Simmons
Chief Financial Officer
3
<PAGE> 4
PLATINUM SOFTWARE CORPORATION
UNAUDITED PRO FORMA COMBINED CONDENSED CONSOLIDATED BALANCE SHEET
JUNE 30, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
HISTORICAL
-------------------------------
PLATINUM CLIENTELE PRO FORMA PRO FORMA
SOFTWARE CORP. SOFTWARE, INC. ADJUSTMENTS COMBINED
-------------- -------------- ----------- ---------
ASSETS (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Current assets:
Cash and cash equivalents $ 6,261 $ 29 $ -- $ 6,290
Short-term investments 9,542 -- -- 9,542
Accounts receivable, net 11,277 748 -- 12,025
Inventories 481 -- -- 481
Prepaid expenses and other 1,418 49 -- 1,467
--------- --------- --------- ---------
Total current assets 28,979 826 -- 29,805
Property and equipment, net 8,190 318 -- 8,508
Software development costs, net 2,660 -- -- 2,660
Acquired intangible assets, net 278 -- -- 278
Other assets 496 31 -- 527
--------- --------- --------- ---------
$ 40,603 $ 1,175 $ -- $ 41,778
========= ========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,296 $ 429 $ -- $ 4,725
Accrued expenses 7,703 378 -- 8,081
Accrued restructuring costs 2,609 -- -- 2,609
Deferred revenue 11,124 514 -- 11,638
--------- --------- --------- ---------
Total current liabilities 25,732 1,321 -- 27,053
--------- --------- --------- ---------
Long-term liabilities -- 277 -- 277
--------- --------- --------- ---------
Stockholders' equity:
Preferred stock 30,292 -- -- 30,292
Common stock 19 68 (67)(C) 20
Additional paid-in capital 116,680 -- 67 (C) 116,747
Less: notes receivable from officers (11,563) -- -- (11,563)
Accumulated foreign currency
translation adjustments 293 -- -- 293
Accumulated deficit (120,850) (491) -- (121,341)
--------- --------- --------- ---------
Total stockholders' equity 14,871 (423) -- 14,448
--------- --------- --------- ---------
$ 40,603 $ 1,175 $ -- $ 41,778
========= ========= ========= =========
</TABLE>
See accompanying notes to unaudited pro forma combined condensed
consolidated financial statements.
4
<PAGE> 5
PLATINUM SOFTWARE CORPORATION
UNAUDITED PRO FORMA COMBINED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
JUNE 30, 1997
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
HISTORICAL
---------------------------------
PLATINUM CLIENTELE PRO FORMA PRO FORMA
SOFTWARE CORP. SOFTWARE, INC. ADJUSTMENTS COMBINED
-------------- -------------- ----------- ---------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Revenues:
License fees $ 26,414 $3,906 $ -- $30,320
Consulting and professional services 10,151 565 -- 10,716
Support services 15,218 643 -- 15,861
Royalty income 1,207 -- -- 1,207
-------- ------ ---- -------
52,990 5,114 -- 58,104
Cost of revenues 20,552 837 -- 21,389
-------- ------ ---- -------
Gross profit 32,438 4,277 -- 36,715
-------- ------ ---- -------
Operating expenses:
Sales and marketing 23,586 1,857 -- 25,443
General and administrative 4,025 1,390 -- 5,415
Software development 9,324 687 -- 10,011
Charge for restructuring 1,600 -- -- 1,600
-------- ------ ---- -------
38,535 3,934 -- 42,469
-------- ------ ---- -------
Income (loss) from operations (6,097) 343 -- (5,754)
Other income (expense), net 928 (55) -- 873
-------- ------ ---- -------
Income (loss) before provision for
income taxes (5,169) 288 -- (4,881)
Provision for income taxes -- -- -- --
-------- ------ ---- -------
Net income (loss) $ (5,169) $ 288 $ -- $(4,881)
======== ====== ==== =======
Net income (loss) per share $ (0.28) $ 0.06 $ (0.25)
======== ====== =======
Shares used in computing net income (loss)
per share 18,567 5,146 19,454
======== ====== =======
</TABLE>
See accompanying notes to unaudited pro forma combined condensed
consolidated financial statements.
5
<PAGE> 6
PLATINUM SOFTWARE CORPORATION
UNAUDITED PRO FORMA COMBINED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
JUNE 30, 1996
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
HISTORICAL
---------------------------------
PLATINUM CLIENTELE PRO FORMA PRO FORMA
SOFTWARE CORP. SOFTWARE, INC. ADJUSTMENTS COMBINED
-------------- -------------- ----------- ---------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Revenues:
License fees $ 19,018 $3,139 $ -- $ 22,157
Consulting and professional services 9,622 318 -- 9,940
Support services 11,296 254 -- 11,550
Royalty income 619 -- -- 619
-------- ------ ---- --------
40,555 3,711 -- 44,266
Cost of revenues 20,179 669 -- 20,848
-------- ------ ---- --------
Gross profit 20,376 3,042 -- 23,418
-------- ------ ---- --------
Operating expenses:
Sales and marketing 19,322 1,792 -- 21,114
General and administrative 14,959 1,037 -- 15,996
Software development 13,403 890 -- 14,293
Charge for restructuring 5,568 -- -- 5,568
-------- ------ ---- --------
53,252 3,719 -- 56,971
-------- ------ ---- --------
Loss from operations (32,876) (677) -- (33,553)
Other expense, net (68) (64) -- (132)
-------- ------ ---- --------
Loss before provision for income
taxes (32,944) (741) -- (33,685)
Provision for income taxes -- -- -- --
-------- ------ ---- --------
Net loss $(32,944) $ (741) $ -- $(33,685)
======== ====== ==== ========
Net loss per share $ (2.23) $(0.17) $ (2.15)
======== ====== ========
Shares used in computing net loss per
share 14,766 4,271 15,654
======== ====== ========
</TABLE>
See accompanying notes to unaudited pro forma combined condensed
consolidated financial statements.
6
<PAGE> 7
PLATINUM SOFTWARE CORPORATION
UNAUDITED PRO FORMA COMBINED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
JUNE 30, 1995
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
HISTORICAL
---------------------------------
PLATINUM CLIENTELE PRO FORMA PRO FORMA
SOFTWARE CORP. SOFTWARE, INC. ADJUSTMENTS COMBINED
-------------- -------------- ----------- ---------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Revenues:
License fees $ 35,723 $1,941 $ -- $ 37,664
Consulting and professional services 10,996 269 -- 11,265
Support services 8,908 77 -- 8,985
Royalty income 526 -- -- 526
-------- ------ ---- --------
56,153 2,287 -- 58,440
Cost of revenues 19,846 323 -- 20,169
-------- ------ ---- --------
Gross profit 36,307 1,964 -- 38,271
-------- ------ ---- --------
Operating expenses:
Sales and marketing 19,884 1,006 -- 20,890
General and administrative 4,924 472 -- 5,396
Software development 17,308 518 -- 17,826
Charge for restructuring -- -- -- --
-------- ------ ---- --------
42,116 1,996 -- 44,112
-------- ------ ---- --------
Loss from operations (5,809) (32) -- (5,841)
Other income (expense), net 122 (19) -- 103
-------- ------ ---- --------
Loss before provision for income
taxes (5,687) (51) -- (5,738)
Provision for income taxes 20 -- -- 20
-------- ------ ---- --------
Net loss $ (5,707) $ (51) $ -- $ (5,758)
======== ====== ==== ========
Net loss per share $ (0.44) $(0.01) $ (0.42)
======== ====== ========
Shares used in computing net loss per
share 12,835 4,256 13,722
======== ====== ========
</TABLE>
See accompanying notes to unaudited pro forma combined condensed
consolidated financial statements.
7
<PAGE> 8
PLATINUM SOFTWARE CORPORATION
UNAUDITED PRO FORMA COMBINED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
JUNE 30, 1994
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
HISTORICAL
---------------------------------
PLATINUM CLIENTELE PRO FORMA PRO FORMA
SOFTWARE CORP. SOFTWARE, INC. ADJUSTMENTS COMBINED
-------------- -------------- ----------- ---------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Revenues:
License fees $ 30,001 $ 767 $ -- $ 30,768
Consulting and professional services 10,973 61 -- 11,034
Support services 5,704 116 -- 5,820
Business forms sales 6,720 -- -- 6,720
Royalty income -- -- -- --
-------- ------ ---- --------
53,398 944 -- 54,342
Cost of revenues 25,389 117 -- 25,506
-------- ------ ---- --------
Gross profit 28,009 827 -- 28,836
-------- ------ ---- --------
Operating expenses:
Sales and marketing 25,430 439 -- 25,869
General and administrative 10,065 193 -- 10,258
Software development 21,805 212 -- 22,017
Charge for restructuring 6,741 -- -- 6,741
Charge for purchased research and
development 3,570 -- -- 3,570
-------- ------ ---- --------
67,611 844 -- 68,455
-------- ------ ---- --------
Loss from operations (39,602) (17) -- (39,619)
Other expense, net (19,653) (6) -- (19,659)
-------- ------ ---- --------
Loss before provision for income
taxes (59,255) (23) -- (59,278)
Provision for income taxes 290 18 -- 308
-------- ------ ---- --------
Net loss $(59,545) $ (41) $ -- $(59,586)
======== ====== ==== ========
Net loss per share $ (4.80) $(0.01) $ (4.48)
======== ====== ========
Shares used in computing net loss per
share 12,409 4,211 13,296
======== ====== ========
</TABLE>
See accompanying notes to unaudited pro forma combined condensed
consolidated financial statements.
8
<PAGE> 9
PLATINUM SOFTWARE CORPORATION
NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
On June 30, 1997, Platinum Software Corporation, (the "Company")
acquired Clientele Software, Inc. ("Clientele"), a privately held developer and
marketer of client/server customer interaction software located in Tualatin,
Oregon. Clientele markets a customer interaction software product under the
Clientele(R) brand name. The transaction was structured as a merger in which the
Company formed an acquisition subsidiary which merged with and into Clientele,
with Clientele being the surviving corporation. The Company issued 887,636
shares of common stock for all the outstanding shares of Clientele stock, and
assumed all outstanding employee stock options, which became options to purchase
approximately 212,360 shares of the Company's common stock. The unaudited pro
forma combined condensed consolidated financial statements have been prepared by
combining the historical balances of the Company and Clientele on a pooling of
interests basis. The following notes describe the adjustment and other items
related to the pro forma combined condensed consolidated financial statements.
A. RESTRUCTURING AND INTEGRATION COSTS
The Company anticipates that Clientele will continue to operate as an
autonomous unit with integration activities focused on the restructuring and
consolidation of Clientele's administrative and support functions with those of
the Company. The Company expects to incur certain expenses estimated at
$1,600,000 in connection with the restructuring and consolidation, primarily the
cost of reducing personnel as well as excess facility costs at Clientele. These
costs are included in the accompanying historical consolidated statements of
operations for the year ended June 30, 1997. The Company may achieve increased
effectiveness and operating costs as a result of the integration activities.
Those expenses and related efficiency cost savings are not currently estimatable
with a reasonable degree of accuracy. Accordingly, they are not reflected in the
unaudited pro forma combined condensed consolidated financial statements.
B. ACQUISITION COSTS
The Company and Clientele estimated they will incur direct transaction
costs of approximately $500,000 associated with the merger consisting of
transaction fees for investment bankers, attorneys, accountants and other
charges. These nonrecurring transaction costs are reflected in the accompanying
historical consolidated statement of operations for the year ended June 30,
1997.
C. STOCKHOLDERS' EQUITY
The exchange rates have been computed in accordance with the Agreement
and Plan of Merger between the Company and Clientele dated June 27, 1997 ("the
Agreement"). The Agreement specifies that all of Clientele's common stock plus
outstanding stock options will be exchanged for shares or options for the
Company's common stock. The number of shares of the Company's common stock to be
issued or reserved for in exchange of all Clientele's stock and options is
1,100,000. The unaudited pro forma combined condensed consolidated balance sheet
at June 30, 1997 reflects the following adjustments to stockholders equity:
9
<PAGE> 10
Common stock has been adjusted to reflect the issuance of 887,636
shares of the Company's common stock with a par value of $.001 in exchange for
4,491,856 issued and outstanding shares of Clientele common stock.
In addition, 212,360 shares of the Company's common stock have been
reserved for issuance to holders of Clientele's stock options have been issued
by the Company at a conversion price of .19761 per Clientele share of common
stock.
D. NET INCOME (LOSS) PER SHARE
The pro forma combined weighted average common share amounts reflected
in the unaudited combined condensed consolidated statements of operations
represents the aggregate of the historical weighted average common shares of the
Company and the historical weighted average common shares of Clientele.
10
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