SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 26, 1999
GIGA INFORMATION GROUP, INC.
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EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER
Delaware File No. 0-21529 06-1422860
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(State or other (Commission (I.R.S Employer
jurisdiction or File Identification
organization) Number) Number)
One Longwater Circle
Norwell, MA 02061
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (781) 982-9500
-----------------
Not Applicable
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(former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
Filed herewith is a copy of the Giga Information Group, Inc.
(the "Company") Press Release, dated July 26, 1999, announcing its results of
operations for the quarter ended June 30, 1999 and the six months ended June 30,
1999. All normal recurring adjustments that are, in the opinion of management,
necessary for a fair presentation of the results of operations for the periods
presented have been included. The nature of the Company's business is such that
the results for any interim period are not necessarily indicative of the results
for an entire fiscal year or any other interim period.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Financial Statements of business acquired:
Not applicable.
(b) Pro Forma financial information:
Not applicable.
(c) Exhibit:
(99) Press Release, dated July 26, 1999
2
<PAGE>
SIGNATURES
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 hereunto duly authorized.
GIGA INFORMATION GROUP, INC.
By: /s/ Daniel M. Clarke
--------------------------------------
Daniel M. Clarke
Senior Vice President and
Chief Financial Officer
Date: July 29, 1999
3
<PAGE>
GIGA INFORMATION GROUP, INC.
FORM 8-K
CURRENT REPORT
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
(99) Press Release, dated July 26, 1999
4
FOR IMMEDIATE RELEASE
FOR INFORMATION CONTACT:
Daniel M. Clarke
Chief Financial Officer
Giga Information Group
One Longwater Circle
Norwell, Massachusetts 02061
1 (781) 982-9500
Fax 1 (781) 871-4098
[email protected]
GIGA INFORMATION GROUP REPORTS
SECOND QUARTER RESULTS
CAMBRIDGE, Mass. (July 26, 1999) -- Giga Information Group, Inc. (NASDAQ: GIGX)
today announced that revenues for the second quarter ended June 30, 1999
increased 41 percent to $12.9 million from $9.1 million in the same period of
1998. Revenues from Continuous Information Services for the second quarter of
1999 increased 42 percent to $10.8 million from $7.6 million in the same period
last year. The net loss for the second quarter of 1999 increased to $6.1
million, or $0.61 per share, from $5.6 million, or $2.60 per share, in the
second quarter of 1998.
Annualized Value* at June 30, 1999 was $48.8 million versus $33.3 million at
June 30, 1998, representing a 47 percent increase year-over-year.
Revenues for the six months ended June 30, 1999 increased 41 percent to $24.8
million from $17.7 million for the same period in 1998. The net loss for the six
months ended June 30, 1999 increased to $9.7 million, or $0.98 per share, from
$9.5 million, or $4.42 per share, for the first half of 1998.
(more)
<PAGE>
Giga Information Group announces second quarter 1999 results 2-2-2
"We continue to grow at what we believe are faster rates than our industry
segment," said Gideon I. Gartner, chairman of Giga Information Group, Inc.
"While we continue to invest in growth, as do most companies with Internet
potentials, we are all disappointed in our expense ratios this quarter. We are
taking immediate action in each of the areas of overrun. Specifically, aside
from conferences, most of the variance occurred in the sales area."
ABOUT GIGA INFORMATION GROUP
Giga Information Group, founded by industry leader Gideon I. Gartner, delivers
technology and management advice to IT decision-makers via innovative research
processes and a leading-edge Web interface. Giga's research focus is on helping
companies integrate their businesses with the Internet; it also covers issues
pertaining to the computing, telecommunications and related industries. Giga
began providing its services in April 1996 and has a global client base
exceeding 950 organizations and over 14,000 individuals. Its enterprise clients
include IT decision-makers who use technology, who sell technology, and who
invest in technology.
Headquartered in Cambridge, Massachusetts, Giga has 10 other offices covering
the Americas and Europe. Giga is also represented by distributors in other areas
of the world. Giga's Web site can be accessed at http://www.gigaweb.com. The
Giga logo with the name Giga Information Group is a registered trademark of Giga
Information Group, Inc.
# # # #
*Giga defines Annualized Value as the cumulative annualized subscription value
of its continuous information services contracts in effect at any given point in
time.
Statements that are not historical fact may be considered forward-looking
statements (as defined in the Private Securities Litigation Reform Act of 1995)
that involve risks and uncertainties. Consequently, actual events or results may
differ materially from those expressed or implied by those set forth in such
forward-looking statements. Factors that could cause actual results to differ
materially include, but are not limited to, the Company's ability to attract and
retain highly skilled and experienced employees, ability to secure subscriptions
to its services and to achieve and sustain high renewal rates, ability to
effectively manage growth, ability to understand and anticipate market trends
and develop and offer new products and services, significant competition from
existing and new competitors, potential fluctuations in quarterly operating
results, continued market acceptance and demand of Giga services, dependence on
Internet infrastructure for access to GigaWeb and other risks as detailed from
time-to-time in the Company's filings with the Securities and Exchange
Commission. The Company undertakes no obligation to update any forward-looking
statements as a result of new information, unanticipated events, or otherwise.
(more)
<PAGE>
Giga Information Group announces second quarter 1999 results 3-3-3
GIGA INFORMATION GROUP, INC.
<TABLE>
<CAPTION>
CONSOLIDATED OPERATING RESULTS
(IN THOUSANDS, EXCEPT SHARE AND QUARTER ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
---------------------------------- ---------------------------------
PER SHARE DATA) (UNAUDITED) % (UNAUDITED) %
1999 1998 Change 1999 1998 Change
------------ ------------ ------- ------------ ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Continuous Information Services $ 10,815 $ 7,604 42% $ 21,169 $ 14,408 47%
Other, principally events 2,075 1,508 38% 3,661 3,256 12%
------------ ------------ ------------ -----------
Total revenues 12,890 9,112 41% 24,830 17,664 41%
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COSTS AND EXPENSES:
Cost of services 7,472 5,231 43% 13,412 9,693 38%
Sales and marketing 8,573 6,537 31% 15,355 12,318 25%
Research and development 397 299 33% 651 638 2%
General and administrative 2,124 1,744 22% 4,242 3,096 37%
Depreciation and amortization 440 414 6% 819 799 3%
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Total costs and expenses 19,006 14,225 34% 34,479 26,544 30%
------------ ------------ ------------ -----------
LOSS FROM OPERATIONS (6,116) (5,113) 20% (9,649) (8,880) 9%
------------ ------------ ------------ -----------
INTEREST INCOME 210 122 72% 464 159 192%
INTEREST EXPENSE (33) (694) -95% (70) (780) -91%
FOREIGN EXCHANGE GAIN/(LOSS) (172) 65 n/a (416) 49 n/a
------------ ------------ ------------ -----------
LOSS FROM OPERATIONS BEFORE INCOME TAXES (6,111) (5,620) 9% (9,671) (9,452) 2%
INCOME TAX (BENEFIT)/CHARGE 10 (4) n/a 52 - n/a
------------ ------------ ------------ -----------
NET LOSS $ (6,121) $ (5,616) 9% $ (9,723) $ (9,452) 3%
============ ============ ============ ===========
RESULTS PER COMMON SHARE:
HISTORICAL - BASIC AND DILUTED:
NET LOSS $ (0.61) $ (2.60) -76% $ (0.98) $ (4.42) -78%
============ ============ ============ ===========
WEIGHTED AVERAGE NUMBER OF SHARES (NOTE 1.) 9,988,216 2,161,542 9,972,176 2,138,815
============ ============ ============ ===========
</TABLE>
(more)
<PAGE>
Giga Information Group announces second quarter 1999 results 4-4-4
GIGA INFORMATION GROUP, INC.
NOTES TO CONSOLIDATED OPERATING RESULTS
NOTE 1. COMPONENTS OF WEIGHTED AVERAGE COMMON SHARES:
<TABLE>
<CAPTION>
QUARTER ENDED SIX MONTHS ENDED
JUNE 30, 1999 JUNE 30, 1999
-------------------------- -------------------------
Weighted Weighted
Actual Average Actual Average
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Shares issued and outstanding at beginning of period 9,969,436 9,969,436 9,943,502 9,943,502
Shares issued from exercise of warrants - - 12,666 10,187
Shares issued from exercise of stock options 31,158 18,780 44,426 18,487
------------ ------------ ------------ -----------
Total (a) 10,000,594 9,988,216 10,000,594 9,972,176
============ ============ ============ ===========
</TABLE>
(a) Historic amounts reported for actual and weighted average outstanding
shares for June 30, 1998 are not inclusive of 3,000,000 shares issued
pursuant to the Company's Initial Public Offering of Common Stock in July
1998 and conversion of all of the Company's outstanding Preferred Stock
into 4,686,784 shares of Common Stock upon closing of the offering in
August 1998.
GIGA INFORMATION GROUP, INC.
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEET DATA
(IN THOUSANDS, EXCEPT SHARE DATA) JUNE 30, DECEMBER 31,
1999 1998
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<S> <C> <C>
ASSETS
Cash, cash equivalents and marketable securities $ 13,837 $ 21,057
Accounts receivable, net 10,344 15,017
Total current assets 33,613 45,591
Property and equipment, net 4,724 3,430
Total assets 38,527 49,213
LIABILITIES AND STOCKHOLDERS' EQUITY
Deferred revenues $ 28,226 $ 29,470
Debt, current portion 684 461
Total current liabilities 37,754 39,363
Total liabilities 37,754 39,807
Total stockholders' equity 773 9,406
Total liabilities and stockholders' equity 38,527 49,213
COMMON STOCK ISSUED AND OUTSTANDING 10,000,594 9,943,502
</TABLE>
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