SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended December 31, 2000
Commission File Number 0-15353
----------------------------
SAZTEC INTERNATIONAL, INC.
California 33-0178457
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
900 Middlesex Tpk., Billerica, Massachusetts 01821
(Address of Principal Executive Office)
978-901-9600
(Registrant's Telephone Number)
---------------
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 and (2) has been subject to such filing requirements for
the past 90 days. Yes _X_ No ___
The number of shares outstanding of registrant's Common Stock at February 14,
2001, was 5,549,928 shares.
SAZTEC INTERNATIONAL, INC.
FORM 10-QSB
QUARTER ENDED DECEMBER 31, 2000
CONTENTS
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Page
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PART I - FINANCIAL INFORMATION
- ------------------------------
Item 1. Financial Statements:
Consolidated Statements of Operations -
Three months ended December 31, 2000 and 1999 3
Consolidated Statements of Operations -
Six months ended December 31, 2000 and 1999 4
Consolidated Balance Sheets - December 31, 2000 and
June 30, 2000 5
Consolidated Statement of Changes in Stockholders' Equity -
December 31, 2000 6
Consolidated Statements of Cash Flows -
Six months ended December 31, 2000 and 1999 7 - 8
Notes to Consolidated Financial Statements - December 31,
2000 and 1999 9 - 10
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 11 - 12
PART II - OTHER INFORMATION
- ---------------------------
Item 1. Legal Proceedings 13
Item 2. Changes in Securities 13
Item 3. Defaults Upon Senior Securities 13
Item 4. Submission of Matters to a Vote of Security Holders 13
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
2
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2000 AND 1999
(Unaudited)
2000 1999
---- ----
Revenues $1,506,398 $1,547,835
Cost of services 1,192,922 1,179,364
------------------ ------------------
Gross profit 313,476 368,471
Selling and administrative expense 585,261 495,456
------------------ ------------------
Loss from operations (271,785) (126,985)
Interest expense 42,457 14,858
------------------ ------------------
Loss before provision for income taxes (314,242) (141,843)
Income taxes - 3,867
------------------ ------------------
Net loss from continuing operations $(314,242) (145,710)
------------------ ------------------
Discontinue Operation
Loss from discontinued segment before taxes (54,780) (139,322)
Applicable Tax Expense - -
------------------ ------------------
Net Loss $(369,022) $(285,032)
================== ==================
Net Loss per share basic and diluted
from continuing operations $(.06) $(.03)
================== ==================
Weighted average common shares basic and diluted 5,356,729 4,461,121
================== ==================
Net Loss per share basic and diluted
from discontinued operations $(.01) $(.03)
================== ==================
Weighted average common shares basic and diluted 5,356,729 4,461,121
================== ==================
Net Loss per share basic and diluted $(.07) $(.06)
================== ==================
Weighted average common shares basic and diluted 5,356,729 4,461,121
================== ==================
See accompanying notes.
3
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2000 AND 1999
(Unaudited)
2000 1999
---- ----
Revenues $2,995,271 $3,252,351
Cost of services 2,604,836 2,399,274
------------------ ------------------
Gross profit 390,435 853,077
Selling and administrative expense 921,245 909,609
------------------ ------------------
Loss from operations (530,810) (56,532)
Interest expense 69,924 28,107
------------------ ------------------
Loss before provision for income taxes (600,734) (84,639)
Income taxes - 3,867
------------------ ------------------
Net loss from continuing operations (600,734) (88,506)
------------------ ------------------
Discontinue Operation
Income (Loss) from discontinued segment before taxes
20,170 (240,799)
Applicable Tax Expense - -
------------------ ------------------
Net Loss $(580,564) $(329,305)
================== ==================
Net Loss per share basic and diluted
from continuing operations $(.12) $(.02)
================== ==================
Weighted average common shares basic and diluted 4,929,379 4,461,121
================== ==================
Net Income (Loss) per share basic and diluted
from discontinued operations $.004 $(.05)
================== ==================
Weighted average common shares basic and diluted 4,929,379 4,461,121
================== ==================
Net Loss per share basic and diluted $(.12) $(.07)
================== ==================
Weighted average common shares basic and diluted 4,929,379 4,461,121
================== ==================
See accompanying notes.
4
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2000 AND JUNE 30, 2000
ASSETS
December 31, 2000 June 30, 2000
----------------- -------------
Unaudited Audited
--------- -------
Current assets
Cash and cash equivalents $687,948 $484,294
Restricted cash 27,230 27,230
Accounts receivable, less allowance for doubtful accounts of $42,911 at
June 30, 2000 and $43,476 at December 31, 2000 1,340,469 1,442,136
Work in process 44,648 6,909
Prepaid expenses and other current assets 110,235 119,765
---------------------------------------------
Total current assets 2,210,530 2,080,334
Property and equipment, net 214,689 306,440
Other assets
Goodwill and other intangible assets, less accumulated amortization of
$106,022 at December 31, 2000 and $99,962 at June 30, 2000 119,340 125,400
Deposits and other assets 79,954 46,515
---------------------------------------------
Total assets $2,624,513 $2,558,689
=============================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Line of Credit $381,212 $545,998
Convertible note payable 900,000 500,000
Current portion of long-term debt and capital lease obligations 48,184 89,102
Accounts payable 1,082,908 1,065,817
Accrued liabilities 423,561 517,990
Customer deposits 66,055 75,653
----------------------------------------------
Total current liabilities 2,901,920 2,794,560
Long-term debt and capital lease obligations less current portion 62,684 57,186
Stockholders' equity
Preferred stock-no par value; 1,000,000 shares authorized; no shares
issued
Common stock-no par value; 10,000,000 shares authorized; 4,469,371
and 5,549,928 shares issued and outstanding at June 30, 2000 and
December 31, 2000 12,967,766 12,435,975
Contributed capital 14,498 14,498
Accumulated deficit (13,219,851) (12,639,287)
Other comprehensive income (102,504) (104,243)
----------------------------------------------
Total stockholders' equity (340,091) (293,057)
----------------------------------------------
Total liabilities and stockholders' equity $2,624,513 $2,558,689
==============================================
See accompanying notes.
5
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
DECEMBER 31, 2000
Common Stock
------------
Cumulative
----------
Number of Contributed Accumulated Translation
--------- ----------- ----------- -----------
Shares Amount Capital Deficit Adjustment
------ ------ ------- ------- ----------
Balance at June 30, 2000 4,469,371 $12,435,975 $14,498 $(12,639,287) $(104,243)
Stock issued pursuant to
Employee options and grants 46,376 $14,700
Coversion of Note Payable 1,034,181 $517,091
Net loss (580,564)
Translation adjustment 1,739
-----------------------------------------------------------------------------------------
Balance at December 31, 2000 5,549,928 $12,967,766 $14,498 $(13,219,851) $(102,504)
=========================================================================================
See accompanying notes.
6
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2000 AND 1999
(Unaudited)
Increase (decrease) in cash 2000 1999
---- ----
Cash flows from operating activities:
Net loss $(580,564) $(329,305)
Adjustments to reconcile net loss to net cash used in operating
activities:
Depreciation and amortization 60,497 114,007
Provision for bad debts 565 0
Changes in assets and liabilities:
Accounts receivable 101,102 498,819
Cost in excess of billings 0 (43,392)
Work in process (37,738) (327,035)
Prepaid expenses and other current assets (3,539) (62,347)
Deposits and other assets (33,439) 6,243
Accounts payable 17,090 374,403
Accrued liabilities (94,430) (200,461)
Customer deposits and non-current accrued expenses (9,598) (129,780)
------------------------------------
Net cash used in operating activities (580,054) (98,848)
------------------------------------
Cash flows from investing activities:
Disposals (additions) to property and equipment net 37,316 (30,042)
Payments received on notes receivable 13,069 0
------------------------------------
Net cash provided by (used by) investing activities 50,385 (30,042)
------------------------------------
Cash flows from financing activities:
Borrowings on notes payable 2,855,817 3,712,629
Payments on notes payable (3,020,604) (3,630,894)
Payments on capital lease obligations (35,420) (52,395)
Covertible debt proceeds 400,000 -
Issuance of common stock 531,791 -
------------------------------------
Net cash provided by financing activities 731,584 29,340
------------------------------------
Effect of exchange rate changes on cash 1,739 7,807
------------------------------------
Net increase (decrease) in cash and cash equivalents 203,654 (91,743)
Cash and cash equivalents at beginning of period 484,294 338,089
------------------------------------
Cash and cash equivalents at end of period $687,948 $246,346
====================================
See accompanying notes.
7
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2000 AND 1999
(Unaudited)
2000 1999
---- ----
Supplemental schedule of non-cash investing and financing activities:
Supplemental disclosures of cash flow information: Cash paid during the period
for:
Interest $39,884 $31,788
=============================
Income taxes - $3,867
=============================
See accompanying notes.
8
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
NOTE 1. ACCOUNTING POLICIES
The accompanying unaudited consolidated financial statements include all
adjustments (consisting only of normal recurring accruals) which, in the opinion
of management, are necessary for a fair presentation of financial position,
results of operations and cash flows. Results of operations for interim periods
are not necessarily indicative of results to be expected for a full year.
NOTE 2. COMMON STOCK
On October 18, 2000, Maida Vale Limited holder of a Convertible Note amounting
to $500,000 with an unpaid accrued interest amount of $17,090.28 exercised its
option to convert. The Note provided for conversion of the principal amount and
unpaid interest into common stock at a conversion price of $0.50 per common
stock. Maida Vale Limited was issued 1,034,181 shares of common stock as on the
exercise date.
NOTE 3. FOREIGN OPERATIONS AND MAJOR CUSTOMERS-SEGMENTS
Revenue, loss before taxes, and identifiable assets by geographic area are shown
below. United Kingdom amounts relate solely to Saztec Europe, Ltd. and its
subsidiaries, whose customers are located in England, Scotland, Germany, and
Italy. Identifiable assets of Saztec Europe Ltd. located outside of Ardrossan,
Scotland are immaterial.
6 Months Ended December 31,
2000 1999
---- ----
Revenue
United States $2,995,274 $3,252,351
United Kingdom/Western Europe* 585,115 978,605
---------------------------------------------------
$3,580,389 $4,230,956
===================================================
Income (loss) before income taxes
United States $(600,735) $(84,640)
United Kingdom/Western Europe 20,171 (240,798)
---------------------------------------------------
$(580,564) $(325,438)
===================================================
Depreciation
United States $63,465 $73,392
United Kingdom/Western Europe (9,028) 40,615
Amortization-U.S. only 6,060 6,060
---------------------------------------------------
$60,497 $120,067
===================================================
Identifiable Assets December 31, 2000 December 31, 1999
----------------- -----------------
United States $2,228,734 $2,578,443
United Kingdom 395,779 1,136,547
---------------------------------------------------
$2,624,513 $3,714,990
===================================================
* Adjusted for intercompany revenue
9
NOTE 4. LOSS PER SHARE
Loss per common share is computed by dividing net loss applicable to common
stockholders by the weighted average number of shares of common stock
outstanding during each period which totaled 5,356,729 and 4,461,121 for the
three month period ended December 31, 2000, and 1999, and 4,929,379 and
4,461,121 for the six months period ended December 31, 2000 respectively.
NOTE 5. SUBSEQUENT EVENTS:
On January 26, 2001 Saztec Europe Limited a wholly owned subsidiary of Saztec
International Inc. filed a petition for liquidation under section 122 (a) of the
Insolvency Act 1986 U.K. It had been determined that the Company's long term
business model in Europe would not be profitable based on market conditions for
our services. This decision will enable the Company to focus in on its core
business of delivering high quality data conversion and image processing
services with resources and distribution efforts focused on major enterprises
and partners in the U.S. marketplace. Accordingly the Company, for all periods
presented, reports Saztec Europe as a discontinued segment.
10
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Revenue for the six months ended December 31, 2000, decreased to $2,995,271 from
$3,252,351 for the six months ended December 31, 1999, a decreased of $257,080
or 7.9%. Revenue for the quarter ended December 31, 2000 at $1,506,398 was down
$41,437 from the $1,547,835 earned for the quarter ended December 31, 1999.
Gross profit for the six months ended December 31, 2000 decreased $462,642 from
the prior year period to 13.04% of sales, compared to 26.2% of sales for the
same period of 1999. Gross profit for the quarter ended December 31, 2000 was
20.81% of sales compared to 23.81% in the same period last year.
Selling, and administrative expenses (S&A) for the six month period increased
$11,636 to $921,245 (30.8% of sales) from $909,609 (27.8% of sales) for the same
period last year. For the quarter ended December 31, 2000 S&A increased to
$585,261 (38.85% of sales) from $495,456 (32.01% of sales) in the prior year
quarter.
Loss from continuing operations before income taxes was $(600,734) for the six
months ended December 31, 2000 compared to $(88,506) for the six months ended
December 31, 1999. Income from discontinued operations for the six months ended
December 31, 2000 was $20,170 compared to a loss of $(240,799) for the same
period the prior year. Net Loss for the six months ended December 31, 2000 was
$(580,564) compared to $(329,305) for the six months ended December 31, 1999.
Cash Flow increased $203,654 for the six months ended December 31, 2000 compared
to a decrease of $91,743 for the same period the prior year. Net cash from
operating activities decreased $580,054, and net cash from investing activities
increased $50,380. Cash flow from financing activities of $731,589 and effect of
exchange rate changes of $1,739 make up the balance of the change.
The Company has appointed a new President and Chief Executive Officer Richard J.
Orlando effective December 13, 2000. Mr. Orlando brings with him 25 years of
experience in the Information Technology business and abundant expertise in the
areas of sales, marketing, business development and operations. Prior to joining
the company, he worked with major corporations including Wang, Data General and
CMGI.
Through the enhanced investment of Datamatics Technologies Ltd., the company has
established a strategic relationship which will enable leveraging its strengths
for providing value added services focusing on U.S. enterprises. Datamatics is a
leader in the global outsourcing business with 2000 employees and clients in
more than 50 countries. Through access to Datamatics high quality standards,
mature methodology and processes, Saztec better positions itself as a provider
of complete knowledge management and image processing solutions.
11
Capital Resources and Liquidity
At December 31, 2000 the Company had borrowed $381,212 under its revolving
credit agreement which allows for borrowings of $800,000. The revolving credit
agreement provides for interest at the lender's prime rate plus 2.5% (12.00 % at
December 31, 2000). The credit agreement is collateralized by substantially all
domestic assets of the Company, including the stock of subsidiaries. The
revolving credit agreement is intended to be a continuing agreement and shall
remain in full effect for an initial term of one year and for any renewal term
of one year unless terminated by either party within 30 days prior to the end of
any such period. The initial term of the revolving credit agreement was from
June 22, 1999 to June 21, 2000, and was renewed for a one-year period until June
21, 2001. Maximum borrowing under the agreement is limited to 80% of outstanding
domestic accounts receivable less than ninety days old, up to $800,000.
The foregoing information may contain forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to known and unknown risks, uncertainties, and other
factors that may cause actual results to be materially different from those
contemplated by the forward-looking statements. Readers are cautioned not to
place undo reliance on these forward-looking statements, which speak only as of
the date of this report. The Company undertakes no obligation to publicly
release any revision to these forward-looking statements to reflect events or
circumstances after the date of this report.
12
SAZTEC INTERNATIONAL, INC.
DECEMBER 31, 2000 FORM 10-QSB
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
None.
ITEM 2. Changes in Securities
None.
ITEM 3. Defaults Upon Senior Securities.
None.
ITEM 4. Submission of Matters to a Vote of Security Holders
None.
ITEM 5. Other Information
On December 12, 2000, Christopher Parker left the Company as President and CEO.
On December 13, 2000, Richard J. Orlando joined the Company as President and
Chief Executive Officer.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
The following Exhibits are filed by attachment to this Form 10-QSB:
Exhibit
Number Description of Exhibit Page
- ------ ----------- -- ------- ----
27 Financial Data Schedule 14
(b) Reports on Form 8-K:
None.
13
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, thereunto duly authorized.
Dated: February 14, 2001
SAZTEC INTERNATIONAL, INC.
--------------------------
(Registrant)
By: /s/ Richard J. Orlando
-------------------------------
Richard J. Orlando
President and CEO
14
SAZTEC INTERNATIONAL, INC.
FORM 10-QSB FOR DECEMBER 31, 2000
Reports on Form 8-K
8-K dated November 02, 2000
Item 1. Changes in Control of Registrant.
On October 18, 2000, Datamatics Technologies Limited ("Datamatics") concluded
the purchase of an aggregate of 2,018,174 shares of common stock of Saztec
International, Inc. ("the Company"), at a purchase price of $0.47 per share
($948,542 in the aggregate) from Tallard Infologix, N.V., a Netherland
corporation ("Infologix"), a wholly-owned subsidiary of Tallard, B.V., and from
Maida Vale Limited, a British Virgin Islands company ("Maida Vale"). Maida Vale
is an affiliate of Infologix. For further information concerning the
relationship between Infologix and Maida Vale and other parties that may be
deemed to control, or that constitute affiliates of, Infologix and Maida Vale,
see Amendment No. 7 to Schedule 13D filed October 26, 2000, by such parties with
respect to their ownership of stock in the Company. The purchase was made
pursuant to a Stock Purchase Agreement dated as of September 12, 2000, by and
among Datamatics, Infologix and Maida Vale (the "Stock Purchase Agreement").
Under a separate Voting Agreement dated as of September 12, 2000, and effective
as of the closing of the Stock Purchase Agreement between Datamatics, Infologix
and Maida Vale (the "Voting Agreement"), Infologix and Maida Vale have agreed
that Maida Vale will be obligated to vote such shares of the Company as they may
own, for a period of two years from the date of the Voting Agreement, in
accordance with Datamatics' instructions as to the election of directors
nominated by Datamatics. Under the Voting Agreement, Datamatics will be
obligated to vote all of the shares of Common Stock it holds, for a period of
two years from the date of the Voting Agreement, in accordance with Maida Vale's
instructions as to the election of one director nominated by Maida Vale. In
addition, the Voting Agreement will require Maida Vale to vote all of its shares
of Common Stock in accordance with Datamatics' instructions, for a period of two
years from the date of the Voting Agreement, in the case of the following
potential transactions that require shareholder votes to be taken: (i) sale of
all or substantially all of the Company's assets; (ii) the acquisition of the
Company by another corporation or entity by consolidation, merger or other
reorganization in which the holders of the Company's outstanding voting stock
immediately prior to such transaction own, immediately after such transaction,
securities representing less than fifty percent (50%) of the voting power of the
corporation or other entity surviving such transaction, or any other
consolidation, merger or other reorganization involving the Company; (iii) the
liquidation, dissolution, winding-up or similar transaction of the Company; (iv)
the amendment or proposed amendment of the articles of incorporation or bylaws
of the Company, provided that such amendment or proposed amendment does not
adversely affect the rights of Infologix or Maida Vale; (v) the reincorporation
of the Company in a jurisdiction other than California; and (vi) any matter
relating to the Company's European operations.
Under the Stock Purchase Agreement, Datamatics made a commitment to loan to the
Company within seven days of the closing of the Stock Purchase Agreement, not
less than $550,000 to finance the Company's anticipated working capital needs.
The $550,000 loan to the Company from Datamatics was made on October 3, 2000,
pursuant to a convertible promissory note due September 25, 2001, the terms of
which permit Datamatics to acquire upon conversion that number of shares of
common stock of the Company as is equal to the quotient of a fraction, the
numerator of which is the balance of principal and unpaid interest, and the
denominator of which is a conversion price of thirty-six cents ($0.36) per
share. As a result Datamatics has the right at any time to convert the note into
shares of common stock of the Company. The conversion rate would result in the
issuance of 1,527,777 shares being issued to Datamatics upon conversion of the
full principal amount of the note. Additional shares would be issuable upon
conversion of the amount owed from time to time under the note for accrued and
unpaid interest, which accrues under the terms of the note at a variable rate
equal to 2% above the prime rate as
15
published from time to time in the Wall Street Journal "Money Rates" column. If
the convertible note held by Datamatics were held and converted immediately
prior to maturity, an additional 152,778 shares would be issuable on conversion
of the accrued and unpaid interest based upon an assumed interest rate of 10%
per annum from the date of issuance until maturity. The effective rate of
interest on the convertible note as of the date of this filing was 11.5%.
Pursuant to the Stock Purchase Agreement, Maida Vale acquired 1,034,181 shares
of common stock of the Company on October 18, 2000, upon conversion of a
convertible promissory note in the principal amount of $500,000 issued in June
2000 by the Company to Maida Vale. As a result of (i) the purchase by Datamatics
described above, (ii) the conversion by Maida Vale of the convertible note held
by it, and (iii) the Voting Agreement, Datamatics has sole or shared voting
control (excluding shares that might be issued in the future upon conversion, in
whole or in part, of the convertible promissory note held by Datamatics) over an
aggregate of 3,251,716 shares of the Company, or 58.6% of the Company's issued
and outstanding shares. Assuming the ownership by Datamatics of shares issuable
upon conversion of the principal amount of convertible note held by it,
Datamatics' aggregate beneficial ownership would cover a minimum of 4,780,132
shares, or 67.5% of the Company's common stock. This excludes shares issuable to
Datamatics in payment of accrued and unpaid interest on the note.
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.
SAZTEC INTERNATIONAL, INC.
Date: November 2, 2000 By: /s/ Christopher Parker
-----------------------
Title: President
16
SAZTEC INTERNATIONAL, INC.
FORM 10-QSB FOR DECEMBER 31, 2000
Reports on Form 8-K
8-K dated February 08, 2001
Item 5. Other Events.
In a press release dated February 5, 2001, Saztec International, Inc. announced
that its subsidiary Saztec Europe Limited has filed a petition for liquidation
in Scotland. To be wound up by the court pursuant to Section 122(a) of the
Insolvency Act 1986 U.K.
Item 7. Exhibits.
Exhibit 99, Press Release dated February 5, 2001.
Saztec Announces Strategic Repositioning
BILLERICA, Mass., Feb. /PRNewswire/ -- Saztec International, Inc. (OTC Bulletin
Board: SAZZ.OB - news) announced today that its subsidiary Saztec Europe
Limited, filed a petition for liquidation in Scotland. The filing was
necessitated as part of the company's transition to higher margin data
conversion and image processing services.
In commenting on this, Saztec International's recently named President & CEO,
Richard J. Orlando, said, "Our strategy entails positioning Saztec as a leader
in its core lines of business of delivering high quality data conversion and
image processing services. Our resources and distribution efforts will be
focused on major enterprises and partners in the U.S. marketplace."
About Saztec International, Inc.
Saztec International is a global leader in the technology of transforming
information into knowledge. The company is a provider of information management
and content building services, specializing in a broad range of services that
help customers manage the conversion of data and images. Its Corporate
Headquarters is located in Billerica, MA. The company delivers a wide array of
IT services to U.S.-based customers through its strategic relationship with
Datamatics Technologies Ltd., a globally recognized outsourcing leader based in
Mumbai, India.
This press release includes "forward-looking statements" within the meaning of
the federal securities laws, which involve uncertainties and risks. These
include statements regarding events or developments that Saztec International
expects or anticipates will occur in the future, such as statements about its
strategies to improve operating performance. A number of risks and uncertainties
could cause actual results, events and developments to differ from expectations,
including the effectiveness of programs to increase revenues and cash flow, and
to reduce costs, and the actions of competitors.
Please refer to Saztec International's 2000 Annual Report on Form 10-K and its
other filings with the Securities and Exchange Commission for a complete
discussion of these and other important factors that could cause results to
differ materially from those projected by these forward-looking statements
SOURCE: Saztec International, Inc.
17
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.
SAZTEC INTERNATIONAL, INC.
Date: February 8, 2001 By: /s/Richard J. Orlando
----------------------
Title: President and CEO
18