<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Amendment No. 2*
Information Storage Devices, Inc.
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
456753
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(CUSIP Number)
Ding-Yuan Yang
Winbond Electronics Corporation
No. 4 Creation Road III
Science-Based Industrial Park
Hsinchu, Taiwan, R.O.C.
011-886-35-770066
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(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
July 24, 1998
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(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 that is the subject of this Schedule 13D, and is filing this
schedule because of Sections 240.113d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box. / /
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. 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 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).
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CUSIP No. 456753 13D Page 2 of 7 Pages
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1) Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons
(entities only)
Winbond Int'l. Corporation
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2) Check the Appropriate Box if a Member of a Group (SEE Instructions)
(a) /x/
(b) / /
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3) SEC Use Only
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4) Source of Funds (See Instructions)
WC
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5) Check 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
British Virgin Islands
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Number of (7) Sole Voting Power
Shares --
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Beneficially (8) Shared Voting Power 490,000
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Owned by (9) Sole Dispositive Power --
Each Reporting ------------------------------------------------------------
Person with (10) Shared Dispositive Power 490,000
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11) Aggregate Amount Beneficially Owned by Each Reporting Person
490,000
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12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares /x/
(SEE Instructions)
- -------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
4.972%
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14) Type of Reporting Person (See Instructions)
CO
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CUSIP No. 456753 13D Page 3 of 7 Pages
- -------------------------------------------------------------------------------
1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
Peaceful River Corp.
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2) Check the Appropriate Box if a Member of a Group (SEE Instructions)
(a) /X/
(b) / /
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3) SEC Use Only
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4) Source of Funds (See Instructions)
WC
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5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
- -------------------------------------------------------------------------------
6) Citizenship or Place of Organization
British Virgin Islands
- -------------------------------------------------------------------------------
Number of (7) Sole Voting Power
Shares --
------------------------------------------------------------
Beneficially (8) Shared Voting Power 427,000
------------------------------------------------------------
Owned by (9) Sole Dispositive Power
Each Reporting
--
------------------------------------------------------------
Person with (10) Shared Dispositive Power 427,000
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11) Aggregate Amount Beneficially Owned by Each Reporting Person
427,000
- -------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares /x/
(SEE Instructions)
- -------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
4.333%
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14) Type of Reporting Person (See Instructions)
CO
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CUSIP No. 456753 13D Page 4 of 7 Pages
1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
Pigeon Creek Holding Co., Ltd.
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2) Check the Appropriate Box if a Member of a Group (SEE Instructions)
(a) /X/
(b) / /
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3) SEC Use Only
- -------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
WC
- -------------------------------------------------------------------------------
5) Check 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
British Virgin Islands
- -------------------------------------------------------------------------------
Number of (7) Sole Voting Power
Shares --
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Beneficially (8) Shared Voting Power
483,000
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Owned by (9) Sole Dispositive Power
Each Reporting
--
-----------------------------------------------------------
Person with (10) Shared Dispositive Power
483,000
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11) Aggregate Amount Beneficially Owned by Each Reporting Person
483,000
- -------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares /x/
(SEE Instructions)
- -------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
4.901%
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14) Type of Reporting Person (See Instructions)
CO
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<PAGE>
CUSIP No. 456753 13D Page 5 of 7 Pages
- -------------------------------------------------------------------------------
1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
Winbond Electronics Corporation
- -------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (SEE Instructions)
(a) /X/
(b) / /
- -------------------------------------------------------------------------------
3) SEC Use Only
- -------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
WC
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5) Check 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
Republic of China in Taiwan
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Number of (7) Sole Voting Power --
Shares
-----------------------------------------------------------
Beneficially (8) Shared Voting Power 1,400,000
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Owned by (9) Sole Dispositive Power --
-----------------------------------------------------------
Each Reporting
Person with (10) Shared Dispositive Power 1,400,000
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11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,400,000
- -------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares / /
(SEE Instructions)
- -------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
14.205%
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14) Type of Reporting Person (See Instructions)
CO
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<PAGE>
INTRODUCTION
This Amendment No. 2 amends the initial Statement on Schedule 13D (the
"Statement") and the Amendment No. 1 to Schedule 13D ("Amendment No. 1") of
Winbond Int'l. Corporation ("WIC"), Peaceful River Corp. ("PRC"), Pigeon
Creek Holding Co., Ltd. ("PCH") and Winbond Electronics Corporation ("WEC")
(collectively, "Winbond") dated May 21, 1998 and filed with the Securities
and Exchange Commission on May 22, 1998 and June 30, 1998, respectively, with
respect to the outstanding shares of common stock of Information Storage
Devices, Inc. ("ISD"). This Amendment No. 2 is filed to disclose Winbond's
submission to ISD of a non-binding proposal to acquire ISD, as well as the
acquisition by Winbond of additional shares of common stock of ISD on the
open market. According to ISD's Proxy Statement for its Annual Meeting, as
filed with the Securities and Exchange Commission on May 19, 1998, there were
9,855,577 shares of ISD common stock, no par value, outstanding as of June
22, 1998. Unless otherwise indicated, all capitalized terms used but not
defined herein shall have the meanings ascribed to such terms in the
Statement and Amendment No. 1.
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 of the Statement is hereby amended and supplemented by the
following:
On July 13, 1998, Archie T. Yeh, the Corporate Vice President
and General Manager of General IC Business Group of WEC, met with
ISD's Chairman and Chief Executive Officer, David Angel. The
meeting had been suggested by Winbond to address existing and
potential operational, technology and product collaboration
between the two companies, and included as additional
participants senior operational personnel from both companies.
Mr. Yeh's and Mr. Angel's discussions referenced the possibility
that Winbond might make an acquisition proposal at some point. No
specific acquisition proposals were discussed at the meeting and
no agreement or understanding was reached, however. Mr. Angel did
inform Mr. Yeh that any acquisition proposal by Winbond should be
submitted to investment bankers that had been retained by ISD.
Within five days of the July 13 meeting, investment bankers
retained by Winbond contacted ISD's investment bankers to
determine whether ISD would have interest in receiving an
acquisition proposal from Winbond. Several conversations occurred
between the companies' respective investment bankers between July
17, 1998 and July 23, 1998.
Mr. Angel and Mr. Yeh met yesterday. During the meeting, Mr.
Yeh informed Mr. Angel that Winbond intended to propose an
acquisition of ISD through a cash merger in which Winbond would
acquire all currently outstanding ISD shares that Winbond does
not own for $8.25 per share and hand-delivered a letter
containing the proposal to Mr. Angel. Winbond's proposal is
non-binding and subject to a number of material conditions,
including the execution of definitive agreements, completion of
satisfactory due diligence, waiver of the application of ISD's
shareholder rights plan, board approval for both companies, ISD
shareholder approval, and compliance with customary legal
requirements. Winbond has asked for a response to its proposal
by July 31, 1998, and ISD has not yet responded to it.
As indicated by its July 24, 1998 proposal Winbond's present
intention is to attempt to acquire ISD through a negotiated
transaction subject to the approval of ISD's board of directors
and the vote of ISD's shareholders. If Winbond's current
proposal is rejected by ISD's board of directors, Winbond may
make other proposals and may seek to acquire ISD by other means,
concerning which no determination has yet been made. There can
be no assurance as to whether or when any other acquisition
proposal will be pursued, or whether any actions by Winbond will
result in the acquisition of ISD by Winbond.
Subject to the factors discussed below, Winbond may continue
to purchase additional shares of ISD Common Stock in the open
market or otherwise. Winbond intends to review on a continuing
basis various factors relating to its investment in ISD,
including ISD's business and prospects, the price and
availability of ISD Common Stock, subsequent developments
affecting ISD, other investment and business opportunities
available to Winbond and general stock market and economic
conditions. Based on these factors, Winbond may decide to change
its current intentions and may determine to sell all or part of
its investment in ISD.
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5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5 of the Statement is hereby amended and supplemented by the
following:
(a) WEC is the beneficial owner of 1,400,000 shares of ISD Common
Stock representing approximately 14.205% of the outstanding shares
of ISD Common Stock. These figures also represent the aggregate
beneficial ownership of ISD Common Stock of the Winbond group.
Each of the members of the Winbond group is the record owner of the
following number of shares and class percentage of ISD Common
Stock:
<TABLE>
<CAPTION>
Name Number of Shares Percentage
---- ---------------- -----------
<S> <C> <C>
WIC 490,000 4.972%
PRC 427,000 4.333%
PCH 483,000 4.901%
</TABLE>
(c) Individual members of the Winbond group have made the
following purchases of ISD Common Stock since filing the group's
Amendment No. 1 on June 30, 1998. All of such purchases were
effected in the open market on the Nasdaq National Market System.
<TABLE>
<CAPTION>
Number of Shares
Purchaser Date Purchased Price per Share
--------- ---- ---------------- ---------------
<S> <C> <C> <C>
PRC 06/30/98 7,500 $5.25
PRC 07/07/98 7,500 $5.25
PRC 07/08/98 25,000 $5.25
</TABLE>
7
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SIGNATURE.
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this Amendment No. 2 to the Statement is true,
complete and correct.
Date: July 24, 1998
By /s/ Lee Chen
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Lee Chen
Signing as attorney-in-fact on behalf of
WIC, PRC, PCH and WEC
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