<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 3)*
GENSYM CORP.
(NAME OF ISSUER)
COMMON STOCK, $.01 PAR VALUE
(TITLE OF CLASS OF SECURITIES)
37245R107
(CUSIP NUMBER)
AUSTIN W. MARXE, 153 EAST 53RD STREET, NEW YORK, NY 10022
(212) 832-5300
(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON
AUTHORIZED TO RECEIVE NOTICES AND COMMUNICATIONS)
APRIL 23, 1999
(DATE OF EVENT WHICH REQUIRES FILING 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 SECTION 240.13d-(e), 240.13d-1(f) OR 240.13d-(g), CHECK THE
FOLLOWING BOX / /.
NOTE: SIX COPIES OF THIS STATEMENT, INCLUDING ALL EXHIBITS, SHOULD BE FILED WITH
THE COMMISSION. SEE SECTION 240.13d-7(b) 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 THE
DISCLOSURES PROVIDED IN A PRIOR COVER PAGE.
THE INFORMATION REQUIRED IN THE REMAINDER OF THE 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).
<PAGE> 2
CUSIP NO. 37245R107 13D Page 2 of 7
--------------------- -------- --------
(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Special Situations Cayman Fund, L.P. (the "Cayman Fund") -
98-0132442
AWN Investment Company, Inc. ("AWN") 11-3086452
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ X ]
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(3) SEC USE ONLY
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(4) SOURCE OF FUNDS*
00
---------------------------------------------------------------------
(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
AWN-Delaware
The Cayman Fund-Cayman Islands
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(7) SOLE VOTING POWER
NUMBER OF See Marxe/Greenhouse
SHARES --------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER
OWNED BY None
EACH --------------------------------------------------------
REPORTING (9) SOLE DISPOSITIVE POWER
PERSON WITH See Marxe/Greenhouse
--------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
None
--------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
145,000
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(12) CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
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(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.4%
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(14) TYPE OF REPORTING PERSON*
IV/IA
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 3
CUSIP NO. 37245R107 PAGE 3 OF 7 PAGES
--------------------- -------- --------
(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Special Situations Fund III, L.P. F13-3737427
MGP Advisers Limited Partnership * F13-3263120
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ X ]
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(3) SEC USE ONLY
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(4) SOURCE OF FUNDS*
00
---------------------------------------------------------------------
(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
Delaware
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(7) SOLE VOTING POWER
NUMBER OF See Marxe/Greenhouse
SHARES --------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER
OWNED BY None
EACH --------------------------------------------------------
REPORTING (9) SOLE DISPOSITIVE POWER
PERSON WITH See Marx/Greenhouse
--------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
None
--------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
410,200
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(12) CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
---------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.8%
---------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
IV/IA
---------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 4
CUSIP NO. 37245R107 PAGE 4 OF 7 PAGES
--------------------- -------- --------
(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Austin W. Marxe
David M. Greenhouse
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ X ]
---------------------------------------------------------------------
(3) SEC USE ONLY
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(4) SOURCE OF FUNDS*
00
---------------------------------------------------------------------
(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 of America
---------------------------------------------------------------------
(7) SOLE VOTING POWER
NUMBER OF 555,200
SHARES --------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER
OWNED BY None
EACH --------------------------------------------------------
REPORTING (9) SOLE DISPOSITIVE POWER
PERSON WITH 555,200
--------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
None
--------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,200
---------------------------------------------------------------------
(12) CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
---------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.2%
---------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
IN
---------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 5
SCHEDULE 13D
Page 5 of 7
Item 1. Security and Issuer.
No change.
Item 2. Identity and Background.
No change.
Item 3. Source and Amount of Funds or Other Consideration.
No change.
Item 4. Purpose of the Transaction.
On February 24, 1999, the Reporting Persons, as represented by David
Greenhouse, furnished a letter to management of the Company for the purpose of
seeking appropriate responses from such management with respect to the concerns
of the Reporting Persons relating to the poor performance of the Company. In
that letter, Mr. Greenhouse demanded a reconstitution of the Board of Directors
of the Issuer as necessary to improve shareholders' value and to respond to the
interests of shareholders. In the absence of a satisfactory response, Special
Situations Fund III, L.P. has requested a list of the Issuer's stockholders from
the Issuer so that the Reporting Persons, as represented by David Greenhouse,
may communicate their concerns and address appropriate action with certain of
such stockholders.
As stated above, the Reporting Persons furnished a request to the
Issuer for its list of shareholders, which request was appropriately made in
accordance with Delaware law. The Issuer, in response, has refused to furnish
such list and, as a result, the Reporting Persons have authorized their Delaware
counsel to institute an action against the Issuer, on an expedited basis, to
seek production of such list and to recover court costs and attorney's fees,
which the Reporting Persons believe are being unreasonably incurred. Overall,
the Reporting Persons are dismayed at the Issuer's responses to their attempts
to address the Issuer's poor performance.
The Reporting Persons may or may not acquire additional Securities or
take other actions. Alternatively, the Reporting Persons may determine to sell
or otherwise dispose of some or all of the Securities owned by them, depending
upon a continued assessment of developments. In making any such determinations,
the Reporting Persons will consider their goals and objectives, other investment
opportunities available to them, as well as other factors.
The foregoing actions may be taken by one or more of the Reporting
Persons and, while currently there are no plans to do so, possibly in
combination with others. The Reporting Persons may also consider whether or not
other stockholders of the Company will become members of their group.
Except as set forth herein, the Reporting Persons have no present plans
or proposals to engage in any transactions involving the Issuer or the
Securities of the Issuer.
Item 5. Interest in Securities of the Issuer.
No change.
<PAGE> 6
SCHEDULE 13D
Page 6 of 7
Item 6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Issuer.
No change.
Item 7. Material to be Filed as Exhibits.
None.
<PAGE> 7
SCHEDULE 13D
Page 7 of 7
SIGNATURE
After reasonable inquiry and to the best of the knowledge and belief of
the undersigned, the undersigned hereby certifies that the information set forth
in this Statement is true, complete and correct.
Dated: April 23, 1999
SPECIAL SITUATIONS FUND III, L.P.
By MGP Advisers Limited Partnership,
General Partner
By AWM Investment Company, Inc., General
Partner
By: /s/ David M. Greenhouse
David M. Greenhouse
Managing Director
SPECIAL SITUATIONS CAYMAN FUND, L.P.
By AWM Investment Company, Inc., General Partner
By: /s/ David M. Greenhouse
David M. Greenhouse
Managing Director
By: /s/ Austin W. Marxe
Austin W. Marxe, individually
By: /s/ David M. Greenhouse
David M. Greenhouse, individually
