1
SECURITIES AND ECHANGE COMMISSION
Washington, D.C. 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) November 18, 1999
-------------------------------
Alpha Microsystems
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
California 0-10558 95-3108178
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
2722 South Fairview Street, Santa Ana, California 92704
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (714) 957-8500
-----------------------------
Not Applicable
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report.)
2
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events
As previously reported, effective November 18, 1999, pursuant to
Amendment No. 3 to the Securities Purchase Agreement dated as of August 7 1998,
the holder of the Company's outstanding redeemable preferred stock, Hampshire
Equity Partners, II, purchased an additional $5.0 million of exchangeable
redeemable preferred stock on essentially the same terms as the currently
outstanding redeemable preferred stock that is included in shareholders' equity
as of September 30, 1999. The preferred holder also received warrants to
purchase an additional 2,971,620 shares of common stock at $2.50 per share.
The pro forma condensed consolidated balance sheet included herein is
filed for informational purposes and reflects the receipt of proceeds of
$4,950,000, net of direct transaction costs of $50,000, and the application of
such net proceeds to redeemable preferred stock and warrants both within
shareholders' equity.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
The following is included with this report:
Condensed Consolidated Balance Sheet as of September 30, 1999
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.
Date: December 29, 1999 ALPHA MICROSYSTEMS
By: /s/Robert O. Riiska
------------------------------------
Robert O. Riiska
Chief Financial Officer
3
ALPHA MICROSYSTEMS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
Pro forma
September 30, September 30,
1999 Pro forma 1999
(Unaudited) Adjustments (Unaudited)
----------- ----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 517 $ 4,950(1) $ 5,467
Restricted cash 300 300
Accounts receivable, net of allowance for doubtful
accounts of $657 7,604 7,604
Prepaid expenses and other current assets 1,152 1,152
-------- -------- -------
Total current assets 9,573 4,950 14,523
Property and equipment, net of accumulated depreciation
of $9,963 5,341 5,341
Goodwill, net 8,060 8,060
IT service contracts, net 637 637
Software development costs, net 582 582
Other intangibles, net 170 170
Other assets 487 487
-------- -------- -------
$ 24,850 $ 4,950 $29,800
======== ======== =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank borrowings $ 2,250 $ $ 2,250
Accounts payable 2,577 2,577
Accrued compensation 1,028 1,028
Deferred revenue 3,814 3,814
Other accrued liabilities 1,074 1,074
-------- -------- -------
Total current liabilities 10,743 10,743
Long-term debt 530 530
Other long-term liabilities 134 134
Redeemable preferred stock, no par value; 2,501 issued
and outstanding, liquidation value $2,556 2,170 2,170
Shareholders' equity:
Redeemable preferred stock, no par value; 5,000,000
shares authorized; 12,500 issued and outstanding, 17,500
pro forma; liquidation value $12,781 actual, $17,781
pro forma 10,693 4,059(2) 14,752
Common stock, no par value; 40,000,000 shares
Authorized; 11,629,820 shares issued and outstanding 32,825 32,825
Warrants 1,764 891(2) 2,655
Accumulated deficit (34,046) (34,046)
Accumulated other comprehensive income 37 37
-------- -------- -------
Total shareholders' equity 11,273 4,950 16,223
-------- -------- -------
$ 24,850 $ 4,950 $29,800
======== ======== =======
(1) Receipt of proceeds, net of transaction related costs approximating $50,000.
(2) Application of net proceeds to redeemable preferred stock and warrants.