SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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) April 11, 2000
-----------------------
ON Technology Corporation
-------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-26376 04-3162846
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
880 Winter Street Waltham, MA 02451
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (781) 487-3300
--------------
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report.)
<PAGE>
ON TECHNOLOGY CORPORATION
Item 5. Other events
Attached hereto is a copy of the Registrant's press release concerning
the Registrant's first-quarter results.
<PAGE>
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 thereunto duly authorized.
ON Technology Corporation
By: /s/ Stephen J. Wietrecki
-----------------------------
Stephen J. Wietrecki
Chief Financial Officer
Dated: April 11, 2000
<PAGE>
Exhibit Index
Exhibit
Number Description
- ------ -----------
99 Press Release
Copy of the Registrant's press release concerning the Registrant's first-quarter
results.
ON TECHNOLOGY LONG-TERM GROWTH ON TRACK
-LARGER RESELLERS AND SERVICE PROVIDERS ATTRACTING NEW BUSINESS OPPORTUNITIES-
WALTHAM, MA, APRIL 10, 2000 -- ON TECHNOLOGY CORPORATION (NASDAQ: ONTC), today
announced that its first-quarter results would not be in line with those
reported in previous periods. The Company is expecting to report net revenues
between $4.0M to $4.3 million and earnings per share between ($0.20) and ($0.22)
for the first-quarter of 2000. The revenue shortfall is primarily due to an
increased emphasis in attracting larger enterprise customers, computer OEMs,
service providers and value added resellers, which has pushed the closing of
several transactions past the end of the quarter. The Company also reported a
slow start to the first-quarter with IT executives decompressing from the Y2K
frenzy, as a secondary factor. The E.P.S. shortfall is a direct result of lower
than expected net revenue.
"The U.S. sales force continues to strengthen our pipeline with multiple
transactions from large enterprises and recently added significant new
opportunities from service providers and reseller channels," said Bob Doretti,
CEO of ON Technology. "Many of these opportunities are presently in a pilot or
proof of concept stage. However, on-going negotiations are proceeding
expeditiously allowing us to remain optimistic that these delays will translate
into higher sales over the longer term."
During the quarter, the Company began negotiations with large service providers
and reselling organizations, who had approached the Company with interest in
reselling the ON Command CCM product line to their customer base. The Company
expects that these relationships will help to dramatically expand the presence
of ON Command CCM within the marketplace over the remainder of this year. The
Company is also in talks with some of the largest computer service providers and
a leading computer manufacturer to increase the rate in which the product is
adopted within larger organizations.
"Our efforts to focus the business on larger prospects has kept the sales cycle
from contracting in the manner we experienced last year," said Mr. Doretti.
"There was more interest in the product line than we have resources to
accommodate during the first quarter. Our short-term strategic focus is to
continue to increase our efforts in acquiring the additional resources required
to take advantage of the larger market opportunities.
Additionally, the Company has scheduled its first quarter 2000 earnings release
for Tuesday, April 18, 2000 after the close of trading. Management will conduct
a conference call beginning promptly at 4:30 p.m. Eastern Time. Participants
should dial 888-243-1119 a few minutes before the conference call.
The statements in this news release that relate to future plans, events or
performance are forward-looking statements, and are made under the Safe Harbor
provision of the Private Securities Litigation Reform Act. These
forward-looking-statements involve risks and uncertainties, including risks
associated with uncertainties pertaining to customer orders, demand for products
and services, development of markets for the Company's products and services and
other risks identified in the Company's SEC filings. Actual results, events and
performance may differ materially. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof. The Company undertakes no obligation to release publicly the result of
any revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
