SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-K/A-1
[x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from __________ to __________
Commission File No. 0-25502
INFORMATION STORAGE DEVICES, INC.
(Exact name of registrant as specified in its charter)
California 77-0197173
(State or other jurisdiction (IRS Employer
incorporation or organization)
Identification No.)
2045 Hamilton Avenue, San Jose, CA 95125 (Address of
principal executive offices, including zip code)
Registrant's telephone number, including area code: (408) 369-2400
--------------
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock no par value
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X NO ____
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X ]
The aggregate market value of voting stock held by nonaffiliates of the
Registrant, was approximately $72,585,252 (based upon the closing price for
shares of the Registrant's Common Stock as reported by the Nasdaq National
Market on February 28, 1998). Shares of Common Stock held by each officer,
director and holder of 5% or more of the outstanding Common Stock have been
excluded in that such persons may be deemed to be affiliates. This determination
of affiliate status is not necessarily a conclusive determination for other
purposes.
On February 28, 1998, approximately 9,842,068 shares of Common Stock,
no par value, were outstanding.
<PAGE>
PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.
(a) 1. Financial Statements.
The following financial statements and Report of Independent Public
Accountants are included in Item 8 of this report.
Balance Sheets at December 31, 1997 and 1996
Statements of Operations for the years ended December 31, 1997, 1996, and
1995 Statements of Stockholders' Equity for the years ended December 31,
1997, 1996, and 1995 Statements of Cash Flows for the years ended
December 31, 1997, 1996, and 1995 Notes to Financial Statements Report of
Independent Public Accountants
2. Financial Statement Schedules.
The following financial statement schedule is filed as part of this Annual
Report on Form 10-K.
<TABLE>
<CAPTION>
<S> <C> <C>
Page (s) in
Annual Report
Description Form 10-K
----------- -------------
Schedule II - Valuation and Qualifying Accounts....... F-1
</TABLE>
All other schedules are omitted because they are not applicable, or not
required, or because the required information is included in the financial
statements or notes thereto.
3. Exhibits -
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
<S> <C> <C>
Exhibit
Number Exhibit Title
------- -------------
3.01 -- Registrant's Articles of Incorporation, as amended to date(1)
3.03 -- Registrant's Bylaws, as amended to date(2)
3.04 -- Certificate of Determination specifying the terms of the Series A
Participating Preferred Stock of the Registrant as filed with the
California Secretary of State on December 28, 1995(3)
4.01 -- Form of Specimen Certificate for Registrant's Common Stock(2)
4.02 -- Amended and Restated Registration Rights Agreement, dated as
of July 8, 1991, as amended(1)
4.03 -- Rights Agreement dated December 28, 1995, between the Registrant
and the First National Bank of Boston, as Rights Agent, and
related documents(3)
10.01 -- Registrant's 1987 Stock Option Plan, as amended, and related
documents(4)*
10.02 -- Registrant's 1994 Equity Incentive Plan, as amended, and related
documents(5)*
10.03 -- Registrant's 1994 Directors Stock Option Plan and related documents(6)*
10.04 -- Registrant's 1994 Employee Stock Purchase Plan and related
documents, as amended(5)*
10.05 -- Form of Indemnification Agreement entered into with each of
Registrant's directors and executive officers(2)*
10.08 -- Lease Agreement between Registrant and Greylands Business
Park, Phase I dated August 24, 1994, together with Addendum dated
July 25, 1995(1)
10.09 -- Wafer Foundry Agreement between Registrant and Samsung Electronics Co., Ltd.,
dated December 26, 1992 as amended(1)** together with Amendment to Wafer
Foundry Agreement Process and Storage Cell Technology License dated
December 26, 1995(7)
<PAGE>
10.21 -- Acceptance, Letter of Credit, Loan and Security Agreements between
Registrant and Union Bank dated June 30, 1997 (includes related Summary
Schedules)
10.22 -- Agreement for Contract Manufacturing between Registrant and
Rohm Electronics, a Division of Rohm Corporation, dated as of
November 27, 1995(7)**
10.23 -- Form of Employment Agreement dated January 19, 1996 between Registrant
and all of the Company's executive officers and certain key employees(6)*
10.24 -- Form of Amended and Restated Employment Agreement dated May 14, 1996 between
Registrant and certain of the Company's executive officers(4)*
10.25 -- Form of Amended and Restated Employment Agreement dated November 19, 1996
between Registrant and certain of the Company's executive officers(8)*
10.26 -- International Distributorship Agreement between Registrant and Marubun Corporation
effective as of April 12, 1994(9)
23.01 -- Consent of Arthur Andersen LLP, Independent Public Accountants
27.01 -- Financial Data Schedule
27.02 -- Restated Financial Data Schedule for the nine months ended September 27, 1997 (10)
27.03 -- Restated Financial Data Schedule for the six months ended June 28, 1997 (10)
27.04 -- Restated Financial Data Schedule for the three months ended March 29, 1997 (10)
27.05 -- Restated Financial Data Schedule for the year ended December 31, 1996 (10)
27.06 -- Restated Financial Data Schedule for the nine months ended September 28, 1996 (10)
27.07 -- Restated Financial Data Schedule for the six months ended June 30, 1996 (10)
27.08 -- Restated Financial Data Schedule for the three months ended March 31, 1996 (10)
27.09 -- Restated Financial Data Schedule for the year ended December 31, 1995 (10)
</TABLE>
----------
* Management contract or compensatory plan or arrangement.
** Confidential treatment has been granted for portions of this
document. Such portions have been omitted from this filing and have
been filed separately with the Securities and Exchange Commission.
(1) Incorporated by reference to the exhibit of the same number filed
with Registrant's Form S-1 Registration Statement (File No. 33-94852).
(2) Incorporated by reference to the exhibit of the same number filed
with Registrant's Form S-1 Registration Statement (File No. 33-86458).
(3) Incorporated by reference to the exhibit of the same number filed
with Registrant's Form 8-K filed on or about January 5, 1996.
(4) Incorporated by reference to the exhibit of the same number filed
with Registrant's Quarterly Report on Form 10-Q for the quarter ended
June 30, 1996.
(5) Incorporated by reference to the exhibit of the same number filed
with Registrant's Quarterly Report on Form 10-Q for the quarter ended
September 27, 1997.
(6) Incorporated by reference to the exhibit of the same number filed
with Registrant's Quarterly Report on Form 10-Q for the quarter ended
March 31, 1996.
(7) Incorporated by reference to the exhibit of the same number filed
with Registrant's Annual Report on Form 10-K for the year ended
December 31, 1995.
(8) Incorporated by reference to the exhibit of the same number filed
with Registrant's Annual Report on Form 10-K for the year ended
December 31, 1996.
(9) Incorporated by reference to the exhibit of the same number filed
with Registrant's Quarterly Report on Form 10-Q for the quarter ended
June 28, 1997.
<PAGE>
(10) Filed herewithin.
(b) Reports on Form 8-K. The Company filed no reports on Form 8-K during the
fourth quarter of the fiscal year ended December 31, 1996.
(c) The exhibits required by this Item are listed under Item 14 (a) 3 above.
(d) The financial statement schedule required by this Item is listed under Item
14 (a) 2 above.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
INFORMATION STORAGE DEVICES, INC.
By: /S/FELIX J. ROSENGARTEN
-------------------------------
Felix J. Rosengarten
Vice President, Finance and Administration,
Chief Financial Officer
Date: May 7, 1998
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities an on the dates indicated.
<TABLE>
<CAPTION>
<S> <C> <C>
Signature Title Date
- --------- ----- ----
/S/ DAVID L. ANGEL Chairman of the Board, Chief Executive May 7, 1998
Officer and Director
- ------------------------- (Principle Executive Officer)
David L. Angel
/S/ FELIX J. ROSENGARTEN Vice President, Finance and Administration, May 7, 1998
and Chief Financial Officer
- ------------------------- (Principal Financial Officer and
Felix J. Rosengarten Principal Accounting Officer)
/S/ FREDERICK B. BAMBER Director May 7, 1998
- -------------------------
Frederick B. Bamber
/S/ EUGENE J. FLATH Director May 7, 1998
- -------------------------
Eugene J. Flath
/S/ ALAN V. KING Director May 7, 1998
- -------------------------
Alan V. King
/S/ ERIC J. OCHILTREE Director May 7, 1998
- -------------------------
Eric J. Ochiltree
/S/ FREDERICK L. ZIEBER Director May 7, 1998
- -------------------------
Frederick L. Zieber
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-27-1997
<CASH> 29,473
<SECURITIES> 17,885
<RECEIVABLES> 9,899
<ALLOWANCES> 0
<INVENTORY> 9,250
<CURRENT-ASSETS> 68,862
<PP&E> 14,202
<DEPRECIATION> 8,207
<TOTAL-ASSETS> 77,638
<CURRENT-LIABILITIES> 12,399
<BONDS> 0
0
0
<COMMON> 79,207
<OTHER-SE> (274)
<TOTAL-LIABILITY-AND-EQUITY> 77,677
<SALES> 33,542
<TOTAL-REVENUES> 33,542
<CGS> 21,736
<TOTAL-COSTS> 21,736
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (1,693)
<INCOME-PRETAX> (7,009)
<INCOME-TAX> 1
<INCOME-CONTINUING> (7,010)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (7,010)
<EPS-PRIMARY> 0.73
<EPS-DILUTED> 0.73
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-28-1997
<CASH> 22,772
<SECURITIES> 25,208
<RECEIVABLES> 5,593
<ALLOWANCES> 0
<INVENTORY> 8,922
<CURRENT-ASSETS> 66,133
<PP&E> 13,158
<DEPRECIATION> 7,436
<TOTAL-ASSETS> 74,145
<CURRENT-LIABILITIES> 8,638
<BONDS> 0
0
0
<COMMON> 78,495
<OTHER-SE> (294)
<TOTAL-LIABILITY-AND-EQUITY> 74,145
<SALES> 19,729
<TOTAL-REVENUES> 19,729
<CGS> 12,888
<TOTAL-COSTS> 12,888
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (1,141)
<INCOME-PRETAX> (6,308)
<INCOME-TAX> 1
<INCOME-CONTINUING> (6,309)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (6,309)
<EPS-PRIMARY> (0.66)
<EPS-DILUTED> (0.66)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-29-1997
<CASH> 23,040
<SECURITIES> 29,126
<RECEIVABLES> 3,712
<ALLOWANCES> 0
<INVENTORY> 10,634
<CURRENT-ASSETS> 69,731
<PP&E> 12,579
<DEPRECIATION> 6,633
<TOTAL-ASSETS> 78,109
<CURRENT-LIABILITIES> 11,352
<BONDS> 0
0
0
<COMMON> 78,483
<OTHER-SE> (316)
<TOTAL-LIABILITY-AND-EQUITY> 78,109
<SALES> 8,342
<TOTAL-REVENUES> 8,342
<CGS> 5,653
<TOTAL-COSTS> 5,653
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (636)
<INCOME-PRETAX> (5,397)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5,397)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,397)
<EPS-PRIMARY> (0.56)
<EPS-DILUTED> (0.56)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 21,927
<SECURITIES> 33,617
<RECEIVABLES> 3,203
<ALLOWANCES> 0
<INVENTORY> 10,059
<CURRENT-ASSETS> 71,680
<PP&E> 11,859
<DEPRECIATION> 6,024
<TOTAL-ASSETS> 78,865
<CURRENT-LIABILITIES> 6,578
<BONDS> 0
0
0
<COMMON> 78,261
<OTHER-SE> (332)
<TOTAL-LIABILITY-AND-EQUITY> 78,865
<SALES> 41,339
<TOTAL-REVENUES> 41,339
<CGS> 32,274
<TOTAL-COSTS> 32,274
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (2,414)
<INCOME-PRETAX> (10,513)
<INCOME-TAX> (1,542)
<INCOME-CONTINUING> (8,971)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (8,971)
<EPS-PRIMARY> (0.92)
<EPS-DILUTED> (0.92)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-28-1996
<CASH> 16,683
<SECURITIES> 30,051
<RECEIVABLES> 4,336
<ALLOWANCES> 0
<INVENTORY> 13,978
<CURRENT-ASSETS> 67,487
<PP&E> 11,146
<DEPRECIATION> 5,378
<TOTAL-ASSETS> 82,418
<CURRENT-LIABILITIES> 9,049
<BONDS> 0
0
0
<COMMON> 77,502
<OTHER-SE> (362)
<TOTAL-LIABILITY-AND-EQUITY> 82,418
<SALES> 31,671
<TOTAL-REVENUES> 31,671
<CGS> 24,800
<TOTAL-COSTS> 24,800
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (1,900)
<INCOME-PRETAX> (7,528)
<INCOME-TAX> 0
<INCOME-CONTINUING> (7,528)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (7,528)
<EPS-PRIMARY> (0.76)
<EPS-DILUTED> (0.76)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 33,956
<SECURITIES> 19,042
<RECEIVABLES> 4,138
<ALLOWANCES> 0
<INVENTORY> 14,497
<CURRENT-ASSETS> 74,552
<PP&E> 10,428
<DEPRECIATION> 4,767
<TOTAL-ASSETS> 89,614
<CURRENT-LIABILITIES> 9,168
<BONDS> 0
0
0
<COMMON> 79,306
<OTHER-SE> (1,058)
<TOTAL-LIABILITY-AND-EQUITY> 89,614
<SALES> 23,518
<TOTAL-REVENUES> 23,518
<CGS> 16,581
<TOTAL-COSTS> 16,581
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (1,334)
<INCOME-PRETAX> (2,746)
<INCOME-TAX> (961)
<INCOME-CONTINUING> (1,785)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,785)
<EPS-PRIMARY> (0.18)
<EPS-DILUTED> (0.18)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 37,608
<SECURITIES> 18,637
<RECEIVABLES> 6,940
<ALLOWANCES> 0
<INVENTORY> 10,827
<CURRENT-ASSETS> 77,402
<PP&E> 9,667
<DEPRECIATION> 4,204
<TOTAL-ASSETS> 95,661
<CURRENT-LIABILITIES> 15,030
<BONDS> 0
0
0
<COMMON> 78,695
<OTHER-SE> (208)
<TOTAL-LIABILITY-AND-EQUITY> 95,661
<SALES> 12,335
<TOTAL-REVENUES> 12,335
<CGS> 9,427
<TOTAL-COSTS> 9,427
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (781)
<INCOME-PRETAX> (3,041)
<INCOME-TAX> (1,064)
<INCOME-CONTINUING> (1,977)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,977)
<EPS-PRIMARY> (0.19)
<EPS-DILUTED> (0.19)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<CASH> 29,202
<SECURITIES> 45,892
<RECEIVABLES> 7,554
<ALLOWANCES> 0
<INVENTORY> 9,809
<CURRENT-ASSETS> 94,298
<PP&E> 8,888
<DEPRECIATION> 3,644
<TOTAL-ASSETS> 105,430
<CURRENT-LIABILITIES> 15,019
<BONDS> 0
0
0
<COMMON> 86,256
<OTHER-SE> (116)
<TOTAL-LIABILITY-AND-EQUITY> 105,430
<SALES> 55,467
<TOTAL-REVENUES> 55,467
<CGS> 33,836
<TOTAL-COSTS> 33,836
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (1,802)
<INCOME-PRETAX> 8,215
<INCOME-TAX> 2,403
<INCOME-CONTINUING> 5,812
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,812
<EPS-PRIMARY> 0.70
<EPS-DILUTED> 0.64
</TABLE>
