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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
Date of Report (Date of earliest event reported)
August 14, 1996
ON Technology Corporation
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(Exact name of registrant as specified in its charter)
Delaware 0-26376 04-3162846
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
One Cambridge Center, Cambridge, MA 02142
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (617) 374-1400
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Not Applicable
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(Former name or address, if changed since last report)
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ON TECHNOLOGY CORPORATION
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Item 5. Other Events
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(a) Attached hereto is a copy of the Registrant's press
release relating to the Registrant's reorganization and
restructuring of its operations.
SIGNATURE
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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 thereunto duly authorized.
ON TECHNOLOGY CORPORATION
By: /s/ Christopher A. Risley
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Christopher A. Risley
President and Chief Executive Officer
Dated: August 14, 1996
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EXHIBIT INDEX
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(a) Copy of the Registrant's press release relating to the Registrant's
reorganization and restructuring of its operations.
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NEWS RELEASE
Forward-Looking Statement Notice: Statements contained in this press release
and statements made in the accompanying conference call that are not historical
statements (including but not limited to, statements concerning estimates of
future revenues, operating expense levels and such operating expense levels
relative to the Company's total revenues) constitute forward-looking statements
under the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. The following risk factors, among other factors (including the
accuracy of the Company's internal estimates of revenue and operating expense
level), may cause the Company's actual results to differ materially from the
results stated in such forward-looking statements: variability of the Company's
quarterly operating results; rapid technological change in the software
industry; competition; product development; dependence on key personnel;
possible volatility of stock price; and other risks detailed from time to time
in the Company's filings with the Securities and Exchange Commission.
Contact: John M. Bogdan
Chief Financial Officer
617-692-3160
ON TECHNOLOGY ANNOUNCES STRATEGIC REORGANIZATION
AND RESTRUCTURING CHARGE
COMPANY ESTABLISHES BUSINESS UNITS
TO ADDRESS NEW PRODUCT AND INTERNATIONAL OPPORTUNITIES
CAMBRIDGE, MASS., AUG. 6, 1996 -- ON Technology Corporation (Nasdaq:
ONTC) today announced that it has implemented a reorganization of its
operations, resulting in the creation of three new units: a Departmental
business unit, an Enterprise business unit and a European business unit. This
initiative is designed to consolidate the three acquisitions the company made in
March of 1996, to decrease the company's emphasis on the e-mail business, and to
better focus the company's resources on bringing new products to the rapidly
changing network marketplace.
As a result of the reorganization, ON will be ceasing pro-active new
customer acquisition efforts for its mature products, such as e-mail, while
expanding its new customer acquisition programs for its high-growth products,
such as the cross-platform Meeting Maker XP group scheduler, the award-winning
SofTrack license metering software, and the NCSA-certified ON Guard firewall.
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ON TECHNOLOGY ANNOUNCES STRATEGIC REORGANIZATION AND RESTRUCTURING CHARGE --
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ON's Departmental sales unit will continue to provide the company's free
trial marketing and support to the middle market while the Enterprise sales
concentrates on growing business from the company's substantial beachhead of
installed products in Fortune 1000 companies. ON's European sales efforts,
currently based near Raleigh, N. C., will be moved to ON's facility outside of
London. ON's non-European international and domestic sales teams will be
consolidated in Cambridge, Mass.
In connection with this reorganization, ON expects to record a one-time,
pre-tax restructuring and related inventory charge totaling $6.5 million to $7.5
million in the third quarter ending Sept. 30, 1996. The restructuring charge
results from facility consolidations, relocation costs and severance costs
related to the reduction of approximately 100 people from of its workforce.
In connection with the reorganization, Christopher Huggett, currently
director of sales and marketing for ON Technology UK Ltd., will become a vice
president and oversee the company's European Operations. Chad Roll, currently
director of operations at the company's North Carolina facility, will move to
Cambridge and become a vice president overseeing the company's Departmental
sales efforts. Victor Lanzillotti, formerly vice president of sales at
SandPoint Corporation, will oversee the Enterprise sales efforts.
Huggett and Roll will join Jay Batson, vice president of engineering, John
Bogdan, chief financial officer, Ivan O'Sullivan, vice president of worldwide
marketing, and John Rizzi, vice president of worldwide sales, as members of the
Executive Committee led by Christopher Risley, Chief Executive Officer, ON
Technology.
"The scalability of our products increased over the past year and we've
seen sales to existing customers grow substantially," said Risley. "This
reorganization lets us to focus on the right things: finding new customers for
new products, growing established customers, and increasing international
penetration."
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