-----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, FiWsuuR74ZRTl4mxH+fhtQwwRSazMiv/cDOyW8zPwPOLjpjUI62s/pWYcQyw9UHX HTrwRzEjppRjEyc6IW/B8w== 0000935836-98-000183.txt : 19980828 0000935836-98-000183.hdr.sgml : 19980828 ACCESSION NUMBER: 0000935836-98-000183 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980827 SROS: NASD SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: EXECUTONE INFORMATION SYSTEMS INC CENTRAL INDEX KEY: 0000725282 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-TELEPHONE INTERCONNECT SYSTEMS [7385] IRS NUMBER: 860449210 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: SEC FILE NUMBER: 005-36502 FILM NUMBER: 98698823 BUSINESS ADDRESS: STREET 1: 478 WHEELERS FARMS RD CITY: MILFORD STATE: CT ZIP: 06460 BUSINESS PHONE: 2038767600 MAIL ADDRESS: STREET 1: 478 WHEELERS FARMS RD CITY: MILFORD STATE: CT ZIP: 06460-1847 FORMER COMPANY: FORMER CONFORMED NAME: VODAVI TECHNOLOGY CORP DATE OF NAME CHANGE: 19880802 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: LAWNDALE CAPITAL MANAGEMENT INC CENTRAL INDEX KEY: 0000929870 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: ONE SAMSOME ST STE 3900 CITY: SAN FRANCISCO STATE: CA ZIP: 94104 BUSINESS PHONE: 4152882330 SC 13D/A 1 OMB APPROVAL OMB Number:3235-0145 Expires: August 31, 1999 Estimated average burden hours per form 14.90 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. 1) Executone Information Systems, Inc. (Name of Issuer) Common Stock - --------------------------------------------------------------------------- (Title of Class of Securities) 301607107 (CUSIP Number) Andrew E. Shapiro, Manager Christopher J. Rupright, Esq. Lawndale Capital Management, LLC Shartsis Friese & Ginsburg LLP One Sansome Street, Suite 3900 One Maritime Plaza, 18th Floor San Francisco, CA 94104 San Francisco, CA 94111 (415) 288-2330 (415) 421-6500 - --------------------------------------------------------------------------- August 24, 1998 (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 which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box / /. ` Note: Six copies of this statement, including all exhibits, should be filed with the Commission. See Rule 13d-1(a) for other parties to whom copies are to be sent. * 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 ("Act") 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). Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1746 (10-97) CUSIP No. 301607107 Page 2 of 11 pages - --------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON Lawndale Capital Management, LLC - --------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / X / (b) / / - --------------------------------------------------------------------------- 3 SEC USE ONLY - --------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - --------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(E) / / - --------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION California - --------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES -0- BENEFICIALLY -------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH 3,425,604 REPORTING -------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH -0- -------------------------------------------------- 10 SHARED DISPOSITIVE POWER 3,425,604 - --------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,425,604 - --------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / / - --------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.9 - --------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO and IA CUSIP No. 301607107 Page 3 of 11 pages - --------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON Andrew E. Shapiro - --------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X / (b) / / - --------------------------------------------------------------------------- 3 SEC USE ONLY - --------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - --------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(E) / / - --------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - --------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES 11,757 BENEFICIALLY -------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH 3,425,604 REPORTING -------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH 11,757 -------------------------------------------------- 10 SHARED DISPOSITIVE POWER 3,425,604 - --------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,437,361 - --------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / / - --------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.9 - --------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN CUSIP No. 301607107 Page 4 of 11 pages - --------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON Diamond A Partners, L.P. - --------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X / (b) / / - --------------------------------------------------------------------------- 3 SEC USE ONLY - --------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - --------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(E) / / - --------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION California - --------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES -0- BENEFICIALLY -------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH 2,905,304 REPORTING -------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH -0- -------------------------------------------------- 10 SHARED DISPOSITIVE POWER 2,905,304 - --------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,905,304 - --------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / / - --------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.8 - --------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN CUSIP No. 301607107 Page 5 of 11 pages - --------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON Diamond A Investors, L.P. - --------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X / (b) / / - --------------------------------------------------------------------------- 3 SEC USE ONLY - --------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - --------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(E) / / - --------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION California - --------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES -0- BENEFICIALLY -------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH 520,300 REPORTING -------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH -0- -------------------------------------------------- 10 SHARED DISPOSITIVE POWER 520,300 - --------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 520,300 - --------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / / - --------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.0 - --------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN CUSIP No. 301607107 Page 6 of 11 pages ITEM 1. SECURITY AND ISSUER. This statement relates to Common Stock (the "Stock") of Executone Information Systems, Inc. ("XTON"). The principal executive office of XTON is located at 478 Wheelers Farms Road, Milford, CT 06460. ITEM 2. IDENTITY AND BACKGROUND. The persons filing this statement and the persons enumerated in Instruction C of Schedule 13D and, where applicable, their respective places of organization, general partners, directors, executive officers and controlling persons, and the information regarding them, are as follows: (a) Lawndale Capital Management, LLC, a California limited liability company ("LCM"); Diamond A Partners, L.P., a California limited partnership ("DAP"); Diamond A Investors, L.P., a California limited partnership ("DAI"); and Andrew E. Shapiro ("Shapiro"). (b) The business address of LCM, DAP, DAI and Shapiro is One Sansome Street, Suite 3900, San Francisco, California 94104. (c) LCM is the investment adviser to and general partner of DAP and DAI, which are investment limited partnerships. Shapiro is the sole manager of LCM. (d) During the last five years, none of such persons has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). (e) During the last five years, none of such persons was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. (f) Shapiro is a citizen of the United States of America. CUSIP No. 301607107 Page 7 of 11 pages ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. The source and amount of funds used in purchasing the Stock were as follows: Purchaser Source of Funds Amount LCM Funds Under Management(1) $7,542,010.22 DAP Working Capital $6,406,195.32 DAI Working Capital $1,135,814.90 Shapiro Personal Funds $ 35,095.63 (1) Includes funds of DAP and DAI invested in Stock. ITEM 4. PURPOSE OF TRANSACTION. XTON parts worth more than whole. The Reporting Persons ("Lawndale") acquired the Stock solely for investment purposes because it believes that the value of the Stock in the public market does not adequately reflect the value of XTON's underlying businesses and assets. Unistar Spinoff. On August 12, 1998, XTON announced that it intends to separate its UniStar subsidiary, which is engaged in the management of internet and telephone- based national lotteries from its core computer telephony and healthcare communications businesses through a rights distribution to its common shareholders. Lawndale is optimistic about XTON's future prospects due primarily to this upcoming separation of UniStar from XTON, the recent hiring of a new Chairman and CEO and the company's increased focus on improving its computer telephony business. Additional Transactions Necessary. However, Lawndale believes that, after the separation of the Unistar business, XTON's Board must take additional actions to maximize shareholder value, including but not limited to, separating the remaining computer telephony and healthcare communications businesses. In this regard, Lawndale incorporates by reference its Item 4 disclosure from its Schedule 13-D filed 6/15/98. In addition, Lawndale believes that implementing a Stock buy-back plan would be appropriate under current market conditions. Lawndale has introduced XTON management to prospective customers and transaction partners for both its computer telephony and healthcare communications businesses. Lawndale has also been in contact with XTON's management, members of XTON's Board of Directors and other significant shareholders of XTON regarding the alternatives XTON plans to employ to maximize shareholder value.. Lawndale may continue such activities. CUSIP No. 301607107 Page 8 of 11 pages ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. The beneficial ownership of the Stock of the persons named in Item 2 of this statement is as follows at the date hereof: Aggregate Beneficially Owned Voting Power Dispositive Power Name Number Percent Sole Shared Sole Shared LCM 3,425,604 6.9 -0- 3,425,604 -0- 3,425,604 Shapiro 3,437,361 6.9 11,757 3,425,604 11,757 3,425,604 DAP 2,905,304 5.8 -0- 2,905,304 -0- 2,905,304 DAI 520,300 1.0 -0- 520,300 -0- 520,300 The persons filing this statement effected the following transactions in the Stock on the dates indicated, and such transactions are the only transactions in the Stock by the persons filing this statement since June 24, 1998: Purchase Number Price Name or Sale Date of Shares Per Share DAP P 06/24/98 4,300 $1.906 DAI P 06/24/98 700 $1.906 DAP P 06/25/98 8,800 $1.969 DAI P 06/25/98 1,200 $1.969 DAI P 06/29/98 1,000 $2.000 DAI P 06/29/98 20,000 $2.023 DAP P 06/30/98 4,800 $2.000 DAI P 06/30/98 5,300 $2.000 DAP P 07/01/98 10,000 $1.969 DAP P 07/02/98 4,100 $1.938 DAP P 07/02/98 10,000 $1.969 DAP P 07/06/98 4,000 $1.938 DAP P 07/06/98 10,000 $2.000 DAP P 07/09/98 2,500 $2.000 DAP P 07/15/98 1,000 $2.000 DAP P 07/15/98 5,000 $2.000 DAP P 07/17/98 12,400 $2.000 DAP P 07/24/98 14,400 $1.918 DAP P 07/24/98 8,700 $1.969 DAI P 07/24/98 1,300 $1.969 DAP P 07/27/98 5,400 $1.912 DAI P 07/27/98 600 $1.912 DAP P 07/28/98 8,200 $1.906 DAI P 07/28/98 1,800 $1.906 DAP P 07/29/98 3,900 $1.813 DAI P 07/29/98 700 $1.813 DAP P 07/31/98 5,200 $1.844 DAP P 07/31/98 7,700 $1.844 DAP P 07/31/98 8,500 $1.813 DAI P 07/31/98 2,300 $1.844 DAI P 07/31/98 1,500 $1.813 CUSIP No. 301607107 Page 9 of 11 pages DAP P 08/04/98 5,000 $1.750 DAP P 08/04/98 5,100 $1.781 DAI P 08/04/98 1,900 $1.781 DAP P 08/05/98 2,500 $1.719 DAP P 08/06/98 800 $1.750 DAP P 08/06/98 8,700 $1.781 DAI P 08/06/98 1,300 $1.781 DAP P 08/07/98 6,600 $1.781 DAI P 08/07/98 900 $1.781 DAP P 08/11/98 800 $1.750 DAP P 08/11/98 5,000 $1.781 DAI P 08/11/98 1,700 $1.750 DAP P 08/12/98 3,700 $1.719 DAI P 08/12/98 300 $1.719 DAP P 08/13/98 13,000 $1.658 DAI P 08/13/98 2,300 $1.658 DAP P 08/14/98 7,200 $1.750 DAP P 08/14/98 10,000 $1.750 DAI P 08/14/98 2,800 $1.750 DAP P 08/17/98 19,600 $1.577 DAI P 08/17/98 2,500 $1.531 DAI P 08/17/98 1,400 $1.577 DAP P 08/18/98 8,800 $1.563 DAI P 08/18/98 1,200 $1.563 DAP P 08/19/98 3,500 $1.531 DAP P 08/19/98 5,000 $1.531 DAI P 08/19/98 1,500 $1.531 DAP P 08/20/98 5,000 $1.500 DAP P 08/20/98 1,000 $1.563 DAI P 08/20/98 1,000 $1.563 DAP P 08/21/98 4,400 $1.531 DAI P 08/21/98 800 $1.531 DAP P 08/24/98 21,900 $1.469 DAI P 08/24/98 3,600 $1.469 DAP P 08/25/98 8,500 $1.375 DAI P 08/25/98 1,500 $1.375 DAP P 08/26/98 23,300 $1.210 DAI P 08/26/98 4,100 $1.210 Shapiro P 08/26/98 (1) (1) On 8/26/98, Shapiro purchased $20,000 principal amount of XTON 7.5% Convertible Subordinated Debentures, due 3/15/2011, for a price of $11,050. The Debentures are convertible into Stock at $10.625 per share, for a total of 1882 shares of Stock. All transactions were executed through the Nasdaq National Market System. CUSIP No. 301607107 Page 10 of 11 pages ITEM. 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. LCM is the general partner of DAP and DAI pursuant to limited partnership agreements providing to LCM the authority, among other things, to invest the funds of DAP and DAI in Stock, to vote and dispose of Stock and to file this statement on behalf of DAP and DAI. Pursuant to such limited partnership agreements, the general partner of DAP and DAI is entitled to allocations based on assets under management and realized and unrealized gains. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. A. Agreement Regarding Joint Filing of Statement on Schedule 13D or 13G. SIGNATURES After reasonable inquiry and to the best of my knowledge, I certify that the information set forth in this statement is true, complete and correct. DATED: August 27, 1998. DIAMOND A PARTNERS, L.P. DIAMOND A INVESTORS, L.P. By: Lawndale Capital Management, LLC By: Lawndale Capital Management, LLC General Partner General Partner By: /s/ Andrew E. Shapiro By: /s/ Andrew E. Shapiro Andrew E. Shapiro Andrew E. Shapiro Manager Manager LAWNDALE CAPITAL MANAGEMENT, LLC By: /s/ Andrew E. Shapiro /s/ Andrew E. Shapiro Andrew E. Shapiro Andrew E. Shapiro Manager CUSIP No. 301607107 Page 11 of 11 pages EXHIBIT A AGREEMENT REGARDING JOINT FILING OF STATEMENT ON SCHEDULE 13D OR 13G The undersigned agree to file jointly with the Securities and Exchange Commission (the "SEC") any and all statements on Schedule 13D or Schedule 13G (and any amendments or supplements thereto) required under section 13(d) of the Securities Exchange Act of 1934, as amended, in connection with purchases by the undersigned of Common Stock of Executone Information Systems, Inc. For that purpose, the undersigned hereby constitute and appoint Lawndale Capital Management, LLC, a California limited liability company, as their true and lawful agent and attorney-in-fact, with full power and authority for and on behalf of the undersigned to prepare or cause to be prepared, sign, file with the SEC and furnish to any other person all certificates, instruments, agreements and documents necessary to comply with section 13(d) and section 16(a) of the Securities Exchange Act of 1934, as amended, in connection with said purchases, and to do and perform every act necessary and proper to be done incident to the exercise of the foregoing power, as fully as the undersigned might or could do if personally present. DATED: June 15, 1998. DIAMOND A PARTNERS, L.P. DIAMOND A INVESTORS, L.P. By: Lawndale Capital Management, LLC By: Lawndale Capital Management, LLC General Partner General Partner By: /s/ Andrew E. Shapiro By: /s/ Andrew E. Shapiro Andrew E. Shapiro Andrew E. Shapiro Manager Manager LAWNDALE CAPITAL MANAGEMENT, LLC By: /s/ Andrew E. Shapiro /s/ Andrew E. Shapiro Andrew E. Shapiro Andrew E. Shapiro Manager -----END PRIVACY-ENHANCED MESSAGE-----