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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)
Strategic Diagnostics Inc.
(Name of Issuer)
Common Stock
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(Title of Class of Securities)
862700101
(CUSIP Number)
Banner Partners
c/o Bryan & Edwards
3000 Sand Hill Road, Bldg. 1, Ste. 190
Menlo Park, CA 94025
(415) 854-1555
- ----------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
August 24, 1999
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule
13G to report the acquisition which is the subject of this
Schedule 13D, and is filing this schedule because of Rule 13d-
1(b)(3) or (4), check the following box / /.
Check the following box if a fee is being paid with the statement
/ /. (A fee is not required only if the reporting person: (1)
has a previous statement on file reporting beneficial ownership
of more than five percent of the class of securities described in
Item 1; and (2) has filed no amendment subsequent thereto
reporting beneficial ownership of five percent or less of such
class.) (See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits,
should be filed with the Commission. See Rule 13d-1(a) for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a
reporting person's initial filing on this form with respect to
the subject class of securities, and for any subsequent amendment
containing information which would alter disclosures provided in
a prior cover page.
The information required on the remainder of this cover page
shall not be deemed to be "filed" for the purpose of Section 18
of the Securities Exchange Act of 1934 ("Act") or otherwise
subject to the liabilities of that section of the Act but shall
be subject to all other provisions of the Act (however, see the
Notes).
SEC 1746 (12-91)
SCHEDULE 13D
CUSIP No. 862700101 Page 2 of 8 Pages
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1 NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
Banner Partners, IRS No.: 94-2703211
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /*/
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS* WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) / /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION California
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NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY ---------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 452,800
REPORTING ---------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH -0-
---------------------------------------
10 SHARED DISPOSITIVE POWER
452,800
- ----------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
452,800
- ----------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- ----------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.3%
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14 TYPE OF REPORTING PERSON*
PN
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SCHEDULE 13D
CUSIP No. 862700101 Page 3 of 8 Pages
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1 NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
William C. Edwards
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /* /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS* WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) / /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ----------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY ---------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 452,800
REPORTING ---------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH -0-
---------------------------------------
10 SHARED DISPOSITIVE POWER
452,800
- ----------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
452,800
- ----------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- ----------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.3%
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14 TYPE OF REPORTING PERSON* IN
SCHEDULE 13D
CUSIP No. 862700101 Page 4 of 8 Pages
- ----------------------------------------------------------------
1 NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
Alan R. Brudos
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /* /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS* WC
- ----------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) / /
- ----------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION United States
- ----------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY ---------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 452,800
REPORTING ---------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH -0-
---------------------------------------
10 SHARED DISPOSITIVE POWER
452,800
- ----------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
452,800
- ----------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- ----------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.3%
- ----------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
SCHEDULE 13D
CUSIP No. 862700101 Page 5 of 8 Pages
ITEM 1. SECURITY AND ISSUER.
This statement relates to shares of common stock ("Common Stock")
of Strategic Diagnostics Inc. ("SDI") (the Securities"). The
principal executive office of SDI is located at 128 Sandy Drive,
Newark, DE 19713.
ITEM 2. IDENTITY AND BACKGROUND.
The persons filing this statement and the persons enumerated in
Instruction C of Schedule 13D and, where applicable, their
respective places of organization, general partners, directors,
executive officers and controlling persons, and the information
regarding them, are as follows:
(a) Banner Partners ("Banner"); William C. Edwards ("Edwards");
and Alan R. Brudos ("Brudos").
(b) The business address of Banner, Edwards and Brudos is 3000
Sand Hill Road, Bldg. 1, Ste. 190, Menlo Park, CA 94025.
(c) Edwards and Brudos are the general partners of Banner, which
is an investment limited partnership.
(d) During the last five years, none of such persons has been
convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors).
(e) During the last five years, none of such persons was a party
to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding was or
is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to,
federal or state securities laws or finding any violation with
respect to such laws.
(f) Banner is a California limited partnership, and Edwards and
Brudos are citizens of the United States of America.
SCHEDULE 13D
CUSIP No. 862700101 Page 6 of 8 Pages
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The source and amount of funds used in purchasing the Securities
were as follows:
Purchaser Source of Funds Amount
Banner (managed
by Palo Alto Investors) Working Capital $833,546.07
ITEM 4. PURPOSE OF TRANSACTION.
The principal purpose of the acquisitions of the Securities is
investment. The persons named in Item 2 of this statement have
no plans or proposals that relate to or would result in:
(a) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving SDI or any of its
subsidiaries;
(b) A sale or transfer of a material amount of assets of SDI or
of any of its subsidiaries;
(c) Any change in the present board of directors or management
of SDI, including any plans or proposals to change the number or
term of directors or to fill any existing vacancies on the board;
(d) Any material change in the present capitalization or
dividend policy of SDI;
(e) Any other material change in SDI's business or corporate
structure;
(f) Changes in SDI's charter, bylaws or instruments
corresponding thereto or other actions which may impede the
acquisition of control of SDI by any person;
(g) Causing a class of securities of SDI to be delisted from a
national securities exchange or to cease to be authorized to be
quoted in an inter-dealer quotation system of a registered
national securities association;
(h) A class of equity securities of SDI becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the
Securities Exchange Act of 1934, as amended; or
(i) Any action similar to any of those enumerated above.
SCHEDULE 13D
CUSIP No. 862700101 Page 7 of 8 Pages
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
The beneficial ownership of the Securities of the persons named
in Item 2 of this amended statement is as follows at the date
hereof:
Aggregate
Beneficially
Owned VotingPower DispositivePower
Name Number Percent Sole Shared Sole Shared
Banner 452,800 3.3% -0- 452,800 -0- 452,800
Edwards 452,800 3.3% -0- 452,800 -0- 452,800
Brudos 452,800 3.3% -0- 452,800 -0- 452,800
The persons filing this statement effected the following
transactions in the Securities on the dates indicated, and such
transactions are the only transactions in the Securities since
July 1, 1999, by the persons filing this statement:
Purchase Number Price
or of Per
Name Sale Date Shares Share
Banner S 8-24-99 296,000 $5.5045
Banner S 8-24-99 8,000 5.8125
Banner S 8-25-99 36,000 5.7708
Banner S 8-26-99 5,600 5.7500
Banner S 8-27-99 14,600 5.7500
Banner S 8-30-99 24,700 5.8333
Banner S 8-31-99 17,300 5.9187
The persons filing this statement ceased to own more than 5% of
the outstanding Securities on August 24, 1999.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER.
Edwards and Brudos are the general partners of Banner pursuant to
a limited partnership agreement (the "LPA"). The LPA provides to
the general partners the authority, among other things, to invest
Banner's funds in the Securities, to vote and
SCHEDULE 13D
CUSIP No. 862700101 Page 8 of 8 pages
dispose of those securities and to file this statement on
Banner's behalf. Pursuant to Banner's investment management
agreement (the "IMA") with Palo Alto Investors ("PAI"), PAI is
authorized, among other things, to invest a portion of Banner's
funds and to vote and dispose of securities acquired by such
funds, including the Securities. The IMA may be terminated by
either party on notice as provided in the IMA and provides for
fees paid to PAI based on assets under management and realized
gains. PAI has filed a statement on Schedule 13G with respect to
the Securities PAI beneficially owns.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Not applicable.
SIGNATURES
After reasonable inquiry and to the best of my knowledge, I
certify that the information set forth in this statement is true,
complete and correct.
DATED: September 2, 1999
BANNER PARTNERS,
a California limited partnership
By: /s/ William C. Edwards
______________________________
William C. Edwards, General Partner
By: /s/ Alan R. Brudos
______________________________
Alan R. Brudos, General Partner
/s/ William C. Edwards
______________________________
William C. Edwards
/s/ Alan R. Brudos
______________________________
Alan R. Brudos
CSR\4325\002\1062045.01
