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UNITED STATES
SECURITIES AND EXCHANGE 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) March 5, 2001
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TERAFORCE TECHNOLOGY CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 0-11630 76-0471342
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1240 East Campbell Road, Richardson, Texas 75081
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (469) 330-4955
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N/A
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(Former name or former address, if changed since last report.)
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Item 5. Other Events.
Status of Certain Litigation. As has been previously disclosed, in
July, 1999 the Company and its wholly-owned subsidiary, DNA Enterprises, Inc.
("DNA") jointly filed suit against Cadence Design Systems, Inc. ("Cadence") in
District Court of Dallas County, Texas. The suit alleges breach of contract,
fraud, breach of fiduciary duty and negligent misrepresentation by Cadence in
connection with the aborted purchase of certain of the assets of DNA. On
February 23, 2001 the trial date for such suit was moved to October 1, 2001 from
February 26, 2001 due to conflicts in the court docket. On February 22, 2001 the
Civil District Court Master issued a recommendation to the Court regarding
various pending motions. These motions involved the production of certain
discovery documents by the defendant, the admissibility of certain evidence, and
the admissibility of testimony from certain experts. Subsequent to these
developments, and based on the report of the Company's and DNA's expert witness
regarding damages, the Company and DNA have amended their suit to indicate that,
in the expert's opinion, aggregate damages to the Company and DNA exceed $100
million.
Due to the uncertainties surrounding litigation the Company is unable
at this time to predict the outcome of this matter.
Item 7. Financial Statements and Exhibits.
(a) Financial Statements of Business to Be Acquired: N/A
(b) Pro Forma Financial Information of the Business to Be Acquired: N/A
(c) Exhibits: N/A
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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.
TERAFORCE TECHNOLOGY CORPORATION
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(Registrant)
Date: March 5, 2001 By: /s/ HERMAN M. FRIETSCH
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(Signature)
Herman M. Frietsch
Chairman of the Board and CEO
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