-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CMbFE2Kxoor0REoiCicoqRax3MO0+yInRC/7At76AW5Sqg8woYUjTeMPxqcjaDF0 NBAQo6d2g+wOrzDsViRmwg== 0000898822-05-001322.txt : 20051101 0000898822-05-001322.hdr.sgml : 20051101 20051101083342 ACCESSION NUMBER: 0000898822-05-001322 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20051101 DATE AS OF CHANGE: 20051101 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: OVERLAND STORAGE INC CENTRAL INDEX KEY: 0000889930 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER STORAGE DEVICES [3572] IRS NUMBER: 953535285 STATE OF INCORPORATION: CA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-53199 FILM NUMBER: 051167924 BUSINESS ADDRESS: STREET 1: 4820 OVERLAND AVENUE CITY: SAN DIEGO STATE: CA ZIP: 92123 BUSINESS PHONE: 8585715555 MAIL ADDRESS: STREET 1: 4820 OVERLAND AVENUE CITY: SAN DIEGO STATE: CA ZIP: 92123 FORMER COMPANY: FORMER CONFORMED NAME: OVERLAND DATA INC DATE OF NAME CHANGE: 19961212 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: ADVANCED DIGITAL INFORMATION CORP CENTRAL INDEX KEY: 0000770403 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER STORAGE DEVICES [3572] IRS NUMBER: 911618616 STATE OF INCORPORATION: WA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: P O BOX 97057 STREET 2: 11431 WILLOWS RD CITY: REDMOND STATE: WA ZIP: 98073-9757 BUSINESS PHONE: 4258953232 MAIL ADDRESS: STREET 1: P.O. BOX 97057 STREET 2: P O BOX 97057 CITY: REDMOND STATE: WA ZIP: 98073-9757 SC 13D/A 1 nov1adic.txt NOVEMBER 1, 2005 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------------------- SCHEDULE 13D/A (RULE 13D-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13D-1(A) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13D-2(A) (AMENDMENT NO. 2)1 --------------------- OVERLAND STORAGE, INC. (NAME OF ISSUER) COMMON STOCK, NO PAR VALUE PER SHARE (TITLE OF CLASS OF SECURITIES) 690310107 (CUSIP NUMBER) ---------------------- YUKIO MORIKUBO P.O. BOX 97057 11431 WILLOWS ROAD N.E. REDMOND, WASHINGTON 98073-9757 (425) 881-8004 (NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON AUTHORIZED TO RECEIVE NOTICES AND COMMUNICATIONS) ---------------------- NOVEMBER 1, 2005 (DATE OF EVENT WHICH REQUIRES FILING OF THIS STATEMENT) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. |_| NOTE: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. SEE Rule 13d-7 for other parties to whom copies are to be sent. - --------------------- 1 The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, SEE the NOTES). ================================================================================ - ------------------------------ ------------------------- CUSIP NO. 690310107 SCHEDULE 13D (PAGE 2 OF 5) - ------------------------------ ------------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON/ I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) Advanced Digital Information Corporation EIN: 91-1618616 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)(a) |_| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(D) OR 2(E) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Washington, U.S.A. - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES 1,303,842 BENEFICIALLY ---------------------------------------------------------------- OWNED BY EACH 8 SHARED VOTING POWER REPORTING -0- PERSON WITH ---------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER 1,303,842 ---------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,303,842 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.14%1 - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) CO - -------------------------------------------------------------------------------- - ------------------------- 1 Based on 14,261,738 shares of outstanding common stock, no par value, of Overland Storage, Inc. as of September 20, 2005, as reported on Overland Storage, Inc.'s proxy statement on Schedule 14A filed with the U.S. Securities and Exchange Commission on October 13, 2005. This Amendment No. 2 (this "Amendment") amends and supplements the Statement on Schedule 13D, as amended (the "Schedule 13D"), of Advanced Digital Information Corporation, a Washington corporation ("ADIC"), in respect of shares of common stock, no par value per share (the "Shares"), of Overland Storage, Inc., a California corporation ("Overland"). This Amendment is being filed to update the Schedule 13D in light of certain recent events. Capitalized terms used and not defined in this Amendment have the meanings set forth in the Schedule 13D. Except as specifically provided herein, this Amendment does not modify any of the information previously reported on the Schedule 13D. ITEM 4. PURPOSE OF TRANSACTION Item 4 is hereby amended and supplemented by adding the following thereto: "On November 1, 2005, ADIC sent a letter (the "November 1 Letter") to the board of directors of Overland, following the board's refusal on October 13, 2005 to discuss ADIC's proposal to acquire 100% of Overland's common stock for $7.90 per share in cash. In the November 1 Letter, ADIC explained that, for the first quarter of fiscal 2006, Overland reported disappointing margins and modest sequential growth of REO product sales. ADIC reiterated that its proposal represents an 18% and 85% premium to Overland's equity and enterprise value, respectively, based on Overland's unaffected share price of $6.69 as of the closing of trading on August 18, 2005, the last trading day before ADIC's intentions and purchases of Shares became public. ADIC explained that it believed that the Overland shareholders would welcome a strategic transaction between the companies, and that ADIC is prepared and eager to meet with Overland at any time to seek a friendly agreement. A copy of the November 1 Letter is attached hereto as Exhibit 99.2 and is incorporated herein by reference. ADIC expects to continue to try to have discussions with Overland, but cannot predict, among other things, whether such discussions will occur, the timing or results of such discussions, if any, and whether such discussions will result in agreement on the terms of any transaction between ADIC and Overland. Whether ADIC enters into negotiations with Overland or makes further proposals related to the Shares or purchases any additional Shares or disposes of any Shares, and the amount and timing of any such transactions, will depend upon ADIC's continuing assessment of pertinent factors, including Overland's and ADIC's respective businesses and prospects, other business investment opportunities available to ADIC, economic conditions, stock market conditions, the attitudes and actions of the board of directors and management of Overland, the availability of Shares for purchase at particular price levels, the availability and nature of opportunities to dispose of ADIC's interest in Overland, to realize trading profits or minimize trading losses, and other plans and requirements of ADIC. Depending upon its individual assessments of these factors from time to time, ADIC may change its present intentions and reserves the right to, among other things, (a) hold its investment in Overland; (b) dispose of some or all of the Shares held by ADIC or to acquire additional Shares from third parties (by means of open market or private transactions for cash or for other consideration); (c) seek to acquire or influence control of Overland, the means of which may include Overland board representation; (d) engage in short selling of or any hedging or similar transaction with respect to the Shares; or (e) take any other action similar, or in addition, to those listed above. Except as otherwise disclosed in this Item 4, ADIC does not currently have any agreements, beneficially or otherwise, that would be related to or would result in any of the matters described in Items 4(a)-(j) of Schedule 13D; however, as part of the ongoing evaluation of this investment and investment alternatives, including in connection with the possible acquisition of Shares referred to in the prior paragraph, ADIC may consider such matters and, subject to applicable law, may formulate a plan with respect to such matters, and, from time to time, may hold discussions with or make formal proposals to management or the board of directors of Overland, or other third parties regarding such matters." ITEM 7. MATERIAL TO BE FILED AS EXHIBITS Item 7 is hereby amended and supplemented by adding the following thereto: "Exhibit 99.2 -- Letter, dated November 1, 2005, from Peter van Oppen, Chief Executive Officer and Chairman of Advanced Digital Information Corporation, to the Board of Directors of Overland Storage, Inc." SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. ADVANCED DIGITAL INFORMATION CORPORATION Date: November 1, 2005 By: /S/ PETER VAN OPPEN -------------------------------------------- Name: Peter van Oppen Title: Chief Executive Officer and Chairman EX-99 2 exh99nov1.txt EXHIBIT 99.2 Exhibit 99.2 [Letterhead of Advanced Digital Information Corp.] November 1, 2005 Board of Directors Overland Storage Inc. 4820 Overland Avenue San Diego, California 92123 Dear Board of Directors: On October 13, 2005, the Board of Directors of Overland Storage, Inc. and a Special Committee of the Board refused to discuss our October 11, 2005 proposal to acquire 100% of Overland's common stock for $7.90 per share in cash. This followed a rejection by Overland in September of an earlier invitation from us to meet regarding a possible combination. Last week, Overland reported disappointing margins and modest sequential growth of REO product sales for the first quarter of fiscal 2006. We expected a proportionate increase in branded product sales to yield greater margin improvement, and we expect that any new library OEM (i.e., non-branded) business Overland might secure in the future is not likely to enhance margin. REO disk-based sales, after adjusting for year-end backlog, appear to have stagnated at $3-$3.3 million over each of the past three quarters and remain well short of the $20 million rate forecast for fiscal 2005 in your 2004 Annual Report on Form 10-K. Our proposal represents an 18% and 85% premium to your equity and enterprise value, respectively, based on your share price of $6.69 as of the close of trading on August 18, 2005, the last trading day before our intentions and purchases of your stock became public. Since then, the median analyst estimate for Overland's fiscal 2006 earnings has declined from an expected loss of 13 cents per share to an expected loss of 33 cents per share. We believe your shareholders would welcome a strategic transaction between our two companies. We are prepared and eager to meet with you any time to seek a friendly agreement and to identify any basis justifying additional consideration. We urge you to respond constructively. Sincerely, /s/ Peter van Oppen Peter van Oppen Chair Chief Executive Officer -----END PRIVACY-ENHANCED MESSAGE-----