-----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, B5vATvGxSwUC3EVMpk9IApeLGFGN9Z4t+EFVhWxq/+9ZJ7Ml3rcif7mw8daX50YU XNp8mt2DFgpYzn1PMo3dog== 0000927016-98-001911.txt : 19980511 0000927016-98-001911.hdr.sgml : 19980511 ACCESSION NUMBER: 0000927016-98-001911 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980506 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980508 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: DAVOX CORP CENTRAL INDEX KEY: 0000811640 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 020364368 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-15578 FILM NUMBER: 98614407 BUSINESS ADDRESS: STREET 1: 6 TECHNOLOGY PARK DR CITY: WESTFORD STATE: MA ZIP: 01886 BUSINESS PHONE: 5089520200 MAIL ADDRESS: STREET 2: 6 TECHNOLOGY PARK DRIVE CITY: WESTFORD STATE: MA ZIP: 01886 8-K 1 FORM 8-K 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) May 6, 1998 DAVOX CORPORATION (Exact name of registrant as specified in its charter) DELAWARE ---------------------------------------------- (State or other jurisdiction of incorporation) 0-15578 02-0364368 - --------------------------- ----------------------------------- (Commission File Number) (IRS Employer Identification No.) 6 TECHNOLOGY PARK DRIVE, WESTFORD, MASSACHUSETTS 01886 ---------------------------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code: (978) 952-0200 -------------- ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS. On May 6, 1998, Duke Acquisition Corporation ("DAC"), a wholly-owned subsidiary of Davox Corporation (the "Company"), merged (the "Merger") with and into AnswerSoft, Inc. ("AnswerSoft"). As a result of the Merger, AnswerSoft has become a wholly-owned subsidiary of the Company and the former securityholders of AnswerSoft will receive 2,384,271 shares of the Company's common stock, $.10 par value (the "Common Stock"). The terms of this transaction and the consideration received by AnswerSoft stockholders were the result of arm's- length negotiations between representatives of AnwerSoft and the Company. The terms of the Merger and the exchange of AnswerSoft securities for the Common Stock are more fully described in the Amended and Restated Agreement and Plan of Merger (the "Merger Agreement") dated as of April 6, 1998 among the Company, AnswerSoft and DAC. This transaction will be accounted for as a pooling of interests. A copy of the Merger Agreement is filed as Exhibit 2.1 to this report and is incorporated herein by reference. The information contained in the press release of Davox dated May 7, 1998 attached as Exhibit 99.2 is hereby incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (a) FINANCIAL STATEMENTS OF THE BUSINESS ACQUIRED: The financial statements required by this item were previously filed: (i) in the Registrant's Form S-4 Registration Statement (No. 333-49479) filed April 6, 1998 (Pages F-18 through F-29); and (ii) as Exhibit 99.2 to the Company's Current Report on Form 8-K dated March 17, 1998. (b) Pro Forma Financial Information. The following unaudited pro forma ------------------------------- combined financial statements appear as Exhibit 99.1 to this Current Report on Form 8-K and are incorporated herein by this reference: (i) Unaudited Pro Forma combined Financial Statements as of December 31, 1994, 1995, 1996 and 1997 and for each of the years then ended. (ii) Unaudited Pro Forma combined Financial Statements for each of the nine fiscal quarters in the period from January 1, 1996 to March 31, 1998. (c) Exhibits. --------- Exhibit No. Description ----------- ----------- 2.1 Amended and Restated Agreement and Plan of Merger dated as of April 6, 1998 among Davox Corporation, Duke Acquisition Corporation and Answersoft, Inc. (incorporated by reference to Exhibit 2.1 to the Company's Registration Statement on Form S-4 (No. 333-49479)) 99.1 Unaudited Pro Forma combined financial statements 99.2 Press Release of Davox Corporation announcing the consummation of the Merger -2- 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. DAVOX CORPORATION By: /s/ John J. Connolly -------------------------------------- John J. Connolly Vice President, Finance, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) Dated: May 8, 1998 -3- EXHIBIT INDEX ------------- Exhibit No. Description ----------- ----------- 2.1 Amended and Restated Agreement and Plan of Merger dated as of April 6, 1998 among Davox Corporation, Duke Acquisition Corporation and Answersoft, Inc. (incorporated by reference to Exhibit 2.1 to the Company's Registration Statement on Form S-4 (No. 333-49479)) 99.1 Unaudited Pro Forma combined financial statements 99.2 Press Release of Davox Corporation announcing the consummation of the Merger -4- EX-99.1 2 UNAUDITED PROFORMA FINANCIAL STATEMENTS Exhibit 99.1 UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL INFORMATION FINANCIAL STATEMENTS The following unaudited pro forma combined condensed financial statements have been prepared to give effect to the merger, using the pooling of interests method of accounting. The unaudited pro forma combined condensed financial statements reflect certain assumptions deemed probable by Davox regarding the Merger (e.g., that share information used in the unaudited pro forma information approximates actual share information at the effective date). No adjustments to the unaudited pro forma combined condensed financial information have been made to account for different possible results in connection with the foregoing, as Davox believes that the impact on such information of the varying outcomes, individually or in the aggregate would not be materially different. The unaudited pro forma combined condensed balance sheets give effect to the merger as if it had occurred on each balance sheet date and combines the audited consolidated balance sheet of Davox and the audited balance sheet of AnswerSoft as of each balance sheet date. The unaudited pro forma combined condensed statements of operations combine the historical consolidated statements of operations of Davox and AnswerSoft for the years ended December 31, 1994, 1995, 1996, 1997 and for each of the nine fiscal quarters in the period From January 1, 1996 to March 31, 1998, in each case as if the Merger had occurred at the beginning of the period presented. Davox and AnswerSoft estimate that they will incur direct transaction costs of approximately $1.5 million associated with the Merger, which will be charged to operations upon consummation of the Merger. In addition, it is expected that following the Merger, the combined company will incur an additional significant charge to operations, which is not currently reasonably estimable, to reflect costs associated with integrating the two companies. There can be no assurance that the combined company will not incur additional charges to reflect costs associated with the Merger or that management will be successful in its efforts to integrate the operations of the two companies. Such unaudited pro forma combined condensed financial information is presented for illustrative purposes only and is not necessarily indicative of the financial position or results of operations that would have actually been reported had the Merger occurred at the beginning of the periods presented, nor is it necessarily indicative of future financial position or results of operations. These unaudited pro forma combined condensed financial statements are based upon the respective historical consolidated financial statements of Davox and AnswerSoft and should be read in conjunction with the respective historical consolidated financial statements and notes thereto of Davox and AnswerSoft, and do not incorporate, nor do they assume, any benefits from cost savings or synergies of operations of the combined company.
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET December 31, 1994 (In thousands) Pro Forma Pro Forma ASSETS Davox AnswerSoft Adjustments Combined ------------ ----------- ----------- ------------- Current assets: Cash and cash equivalents $ 5,278 $ 5,290 $ - $ 10,568 Accounts receivable, net 4,700 7 - 4,707 Prepaid expenses and other current assets 976 12 - 988 Total current assets ------------ ----------- ----------- ------------ 10,954 5,309 - 16,263 ------------ ----------- ----------- ------------ Property and equipment, net 2,537 186 - 2,723 ------------ ----------- ----------- ------------ Other assets, net 1,286 4 - 1,290 ------------ ----------- ----------- ------------ Total assets $ 14,777 $ 5,499 $ - $ 20,276 ============ =========== =========== ============ LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 2,531 $ 225 $ - $ 2,756 Accrued expenses 3,820 59 - 3,879 Customer deposits 830 - - 830 Deferred revenue 1,858 - - 1,858 Current portion of long-term obligations 108 19 - 127 ------------ ----------- ----------- ------------ Total current liabilities 9,147 303 - 9,450 ------------ ----------- ----------- ------------ Long-term obligations, less current portion 138 17 - 155 ------------ ----------- ----------- ------------ Preferred stock, $0.01 par value - 8,480 (8,480) - Stockholders' equity (deficit): Common stock, $0.10 par value 658 4 139 801 Additional paid-in capital 41,922 - 8,341 50,263 Accumulated deficit (37,064) (3,305) - (40,369) ------------ ----------- ----------- ------------ 5,516 (3,301) 8,480 10,695 Less - treasury stock, at cost (24) - - (24) ------------ ----------- ----------- ------------ Total stockholders' equity (deficit) 5,492 (3,301) 8,480 10,671 ------------ ----------- ----------- ------------ $ 14,777 $ 5,499 $ - $ 20,276 ============ =========== =========== ============
See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1994 (In thousands, except share and per share amounts) Pro Forma Pro Forma Davox AnswerSoft Adjustments Combined ------------- ------------- ----------- --------- Revenue $30,047 $36 $- $30,083 Cost of revenue 16,234 - - 16,234 ------------ ------------ ----------- ---------- Gross profit 13,813 36 - 13,849 ------------ ------------ ----------- ---------- Research, development and engineering expenses 3,540 1,320 - 4,860 Selling, general and administrative expenses 12,681 996 - 13,677 Restructuring costs 3,379 - - 3,379 Purchased technology - 1,032 - 1,032 ------------ ------------ ----------- ---------- Total operating expenses 19,600 3,348 - 22,948 ------------ ------------ ----------- ---------- Loss from operations (5,787) (3,312) - (9,099) Interest income, net 37 7 - 44 ------------ ------------ ----------- --------- Net loss ($5,750) ($3,305) $- ($9,055) ============ ============ =========== ========= Loss per share: Basic $ (1.01) Weighted average shares outstanding: Basic 8,951,362
See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET DECEMBER 31, 1995 (In thousands) Pro Forma Pro Forma ASSETS Davox AnswerSoft Adjustments Combined ----------- ------------ ------------- ------------ Current assets: Cash and cash equivalents $ 12,936 $ 2,648 $ - $ 15,584 Accounts receivable, net 4,460 301 - 4,761 Prepaid expenses and other current assets 1,061 33 - 1,094 ----------- ------------ ------------- ------------ Total current assets 18,457 2,982 - 21,439 ----------- ------------ ------------- ------------ Property and equipment, net 1,865 302 - 2,167 ----------- ------------ ------------- ------------ Other assets, net 502 7 - 509 ----------- ------------ ------------- ------------ Total assets $ 20,824 $ 3,291 $ - $ 24,115 =========== ============ ============= ============ LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 2,927 $ 69 $ - $ 2,996 Accrued expenses 3,925 180 - 4,105 Customer deposits 1,293 - - 1,293 Deferred revenue 1,629 15 - 1,644 Current portion of long-term obligations 93 9 - 102 ----------- ------------ ------------- ------------ Total current liabilities 9,867 273 - 10,140 ----------- ------------ ------------- ------------ Long-term obligations, less current portion 45 5 - 50 ----------- ------------ ------------- ------------ Preferred stock, $0.01 par value - 8,480 (8,480) - Stockholders' equity (deficit): Common stock, $0.10 par value 685 6 139 830 Additional paid-in capital 42,509 2 8,341 50,852 Accumulated deficit (32,258) (5,475) - (37,733) ----------- ------------ ------------- ------------ 10,936 (5,467) 8,480 13,949 Less - treasury stock, at cost (24) - - (24) ----------- ------------ ------------- ------------ Total stockholders' equity (deficit) 10,912 (5,467) 8,480 13,925 ----------- ------------ ------------- ------------ $ 20,824 $ 3,291 $ - $ 24,115 =========== ============ ============= ============
See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995 (In thousands, except share and per share amounts) Pro Forma Pro Forma Davox AnswerSoft Adjustments Combined ---------- ------------ ------------- ------------ Revenue $37,556 $1,041 $ - $38,597 Cost of revenue 16,452 712 - 17,164 --------- ------- -------- --------- Gross profit 21,104 329 - 21,433 --------- ------- -------- --------- Research, development and engineering expenses 4,020 881 - 4,901 Selling, general and administrative expenses 12,166 1,801 - 13,967 --------- ------- -------- --------- Total operating expenses 16,186 2,682 - 18,868 --------- ------- -------- --------- Income (loss) from operations 4,918 (2,353) - 2,565 Interest income, net 422 207 - 629 --------- ------- -------- --------- Income (loss) before provision (benefit) for income taxes 5,340 (2,146) - 3,194 Provision (benefit) for income taxes 534 25 (215)(i) 344 -------- -------- -------- --------- Net income (loss) $4,806 ($2,171) $ 215 $2,850 ======== ======== ======== ========= Earnings per share: Basic $.25 Diluted $.22 Weighted average shares outstanding: Basic 11,280,129 Diluted 12,845,770
(i) Reflects income tax benefit associated with AnswerSoft's loss at Davox's effective tax rate of 10%. See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET MARCH 31, 1996 (In thousands) Pro Forma Pro Forma ASSETS Davox AnswerSoft Adjustments Combined ---------- ---------- ----------- ----------- Current assets: Cash and cash equivalents $ 16,792 $ 2,314 $ - $ 19,106 Accounts receivable, net 6,144 490 - 6,634 Prepaid expenses and other current assets 1,219 34 - 1,253 ---------- ---------- ----------- ----------- Total current assets 24,155 2,838 - 26,993 ---------- ---------- ----------- ----------- Property and equipment, net 2,171 159 - 2,330 ---------- ---------- ----------- ----------- Other assets, net 326 12 - 338 ---------- ---------- ----------- ----------- Total assets $ 26,652 $ 3,009 $ - $ 29,661 ========== ========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 3,972 $ 110 $ - $ 4,082 Accrued expenses 3,425 192 - 3,617 Customer deposits 2,524 - - 2,524 Deferred revenue 3,686 44 - 3,730 Current portion of long-term obligations 82 21 - 103 ---------- ---------- ----------- ----------- Total current liabilities 13,689 367 - 14,056 ---------- ---------- ----------- ----------- Long-term obligations, less current portion 30 - - 30 ---------- ---------- ----------- ----------- Preferred stock, $0.01 par value - 8,480 (8,480) - Stockholders' equity (deficit): Common stock, $0.10 par value 693 6 139 838 Additional paid-in capital 42,763 2 8,341 51,106 Accumulated deficit (30,499) (5,846) - (36,345) ---------- ---------- ----------- ----------- 12,957 (5,838) 8,480 15,599 Less - treasury stock, at cost (24) - - (24) ---------- ---------- ----------- ----------- Total stockholders' equity (deficit) 12,933 (5,838) 8,480 15,575 ---------- ---------- ----------- ----------- $26,652 $3,009 $ - $ 29,661 ========== ========== =========== ===========
See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS FOR THE QUARTER ENDED MARCH 31, 1996 (In thousands, except share and per share amounts) Pro Forma Pro Forma Davox AnswerSoft Adjustments Combined ---------- ------------ ------------- ------------ Revenue $11,410 $487 $ - $11,897 Cost of revenue 4,679 136 - 4,815 --------- ------- -------- --------- Gross profit 6,731 351 - 7,082 --------- ------- -------- --------- Research, development and engineering expenses 1,268 183 - 1,451 Selling, general and administrative expenses 3,673 568 - 4,241 --------- ------- -------- --------- Total operating expenses 4,941 751 - 5,692 --------- ------- -------- --------- Income (loss) from operations 1,790 (400) - 1,390 Interest income, net 163 30 - 193 --------- ------- -------- --------- Income (loss) before provision (benefit) for income taxes 1,953 (370) - 1,583 Provision (benefit) for income taxes 195 - (37)(i) 158 -------- -------- -------- --------- Net income (loss) $1,758 ($370) $ 37 $1,425 ======== ======== ======== ========= Earnings per share: Basic $.12 Diluted $.11 Weighted average shares outstanding: Basic 11,561,378 Diluted 13,302,947
(i) Reflects income tax benefit associated with AnswerSoft's loss at Davox's effective tax rate of 10%. See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET JUNE 30, 1996 (In thousands) Pro Forma Pro Forma ASSETS Davox AnswerSoft Adjustments Combined ----------- ------------ ------------- ------------ Current assets: Cash and cash equivalents $ 22,592 $ 2,054 $ - $ 24,646 Accounts receivable, net 4,893 660 - 5,553 Prepaid expenses and other current assets 1,744 35 - 1,779 ----------- ------------ ------------- ------------ Total current assets 29,229 2,749 - 31,978 ----------- ------------ ------------- ------------ Property and equipment, net 2,995 156 - 3,151 ----------- ------------ ------------- ------------ Other assets, net 307 12 - 319 ----------- ------------ ------------- ------------ Total assets $ 32,531 $ 2,917 $ - $ 35,448 =========== ============ ============= ============ LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 3,691 $ 159 $ - $ 3,850 Accrued expenses 4,074 251 - 4,325 Customer deposits 5,478 - - 5,478 Deferred revenue 3,254 88 - 3,342 Current portion of long-term obligations 67 9 - 76 ----------- ------------ ------------- ------------ Total current liabilities 16,564 507 - 17,071 ----------- ------------ ------------- ------------ Long-term obligations, less current portion 10 - - 10 ----------- ------------ ------------- ------------ Preferred stock, $0.01 par value - 8,480 (8,480) - Stockholders' equity (deficit): Common stock, $0.10 par value 720 6 139 865 Additional paid-in capital 43,712 2 8,341 52,055 Accumulated deficit (28,451) (6,078) - (34,529) ----------- ------------ ------------- ------------ 15,981 (6,070) 8,480 18,391 Less - treasury stock, at cost (24) - - (24) ----------- ------------ ------------- ------------ Total stockholders' equity (deficit) 15,957 (6,070) 8,480 18,367 ----------- ------------ ------------- ------------ $ 32,531 $ 2,917 $ - $ 35,448 =========== ============ ============= ============
See accompanying notes to unaudited pro froma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS FOR THE QUARTER ENDED JUNE 30, 1996 (In thousands, except share and per share amounts) Pro Forma Pro Forma Davox AnswerSoft Adjustments Combined ---------- ----------- ----------- -------------- Revenue $12,665 $626 $- $13,291 Cost of revenue 5,138 175 - 5,313 ---------- ----------- ----------- -------------- Gross profit 7,527 451 - 7,978 ---------- ----------- ----------- -------------- Research, development and engineering expenses 1,416 213 - 1,629 Selling, general and administrative expenses 4,054 494 - 4,548 ---------- ----------- ----------- -------------- Total operating expenses 5,470 707 - 6,177 ---------- ----------- ----------- -------------- Income (loss) from operations 2,057 (256) - 1,801 Interest income, net 219 24 - 243 ---------- ----------- ----------- -------------- Income (loss) before provision (benefit) for income taxes 2,276 (232) - 2,044 Provision (benefit) for income taxes 228 - (23)(i) 205 ---------- ----------- ----------- -------------- Net income (loss) $2,048 ($232) $23 $1,839 ========== =========== =========== ============== Earnings per share: Basic $.16 Diluted $.14 Weighted average shares outstanding: Basic 11,850,170 Diluted 13,584,762
(i) Reflects income tax benefit associated with AnswerSoft's loss at Davox's effective tax rate of 10%. See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET SEPTEMBER 30, 1996 (In thousands) Pro Forma Pro Forma ASSETS Davox AnswerSoft Adjustments Combined ---------- ----------- ------------ ----------- Current assets: Cash and cash equivalents $ 24,331 $ 1,799 $ - $ 26,130 Short-term investments 3,297 - - 3,297 Accounts receivable, net 3,569 948 - 4,517 Prepaid expenses and other current assets 1,538 39 - 1,577 ---------- ---------- ---------- ---------- Total current assets 32,735 2,786 - 35,521 ---------- ---------- ---------- ---------- Property and equipment, net 3,586 148 - 3,734 ---------- ---------- ---------- ---------- Other assets, net 95 12 - 107 ---------- ---------- ---------- ---------- Total assets $ 36,416 $ 2,946 $ - $ 39,362 ========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 4,033 $ 115 $ - $ 4,148 Accrued expenses 4,940 192 - 5,132 Customer deposits 5,430 - - 5,430 Deferred revenue 3,076 103 - 3,179 Current portion of long-term obligations 59 6 - 65 ---------- ---------- ---------- ---------- Total current liabilities 17,538 416 - 17,954 ---------- ---------- ---------- ---------- Preferred stock, $0.01 par value - 8,480 (8,480) - Stockholders' equity (deficit): Common stock, $0.10 par value 733 6 139 878 Additional paid-in capital 44,144 5 8,341 52,490 Accumulated deficit (25,975) (5,961) - (31,936) ---------- ---------- ---------- ---------- 18,902 (5,950) 8,480 21,432 Less - treasury stock, at cost (24) - - (24) ---------- ---------- ---------- ---------- Total stockholders' equity (deficit) 18,878 (5,950) 8,480 21,408 ---------- ---------- ---------- ---------- $ 36,416 $ 2,946 $ - $ 39,362 ========== ========== ========== ==========
See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 1996 (In thousands, except share and per share amounts) Pro Forma Pro Forma Davox AnswerSoft Adjustments Combined ---------- ----------- ----------- -------------- Revenue $14,079 $960 $- $15,039 Cost of revenue 5,628 137 - 5,765 ---------- ----------- ----------- -------------- Gross profit 8,451 823 - 9,274 ---------- ----------- ----------- -------------- Research, development and engineering expenses 1,549 224 - 1,773 Selling, general and administrative expenses 4,512 495 - 5,007 ---------- ----------- ----------- -------------- Total operating expenses 6,061 719 - 6,780 ---------- ----------- ----------- -------------- Income from operations 2,390 104 - 2,494 Interest income, net 363 13 - 376 ---------- ----------- ----------- -------------- Income before provision for income taxes 2,753 117 - 2,870 Provision for income taxes 276 - 12 (i) 288 ---------- ----------- ----------- -------------- Net income $2,477 $117 ($12) $2,582 ========== =========== =========== ============== Earnings per share: Basic $.21 Diluted $.19 Weighted average shares outstanding: Basic 12,115,170 Diluted 13,679,715
(i) Reflects income tax provision associated with AnswerSoft's income at Davox's effective tax rate of 10%. See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET DECEMBER 31, 1996 (In thousands) Pro Forma Pro Forma ASSETS Davox AnswerSoft Adjustments Combined ----------- ------------ ------------- ------------ Current assets: Cash and cash equivalents $ 21,333 $ 2,942 $ - $ 24,275 Short-term investments 9,780 - - 9,780 Accounts receivable, net 3,185 1,179 - 4,364 Prepaid expenses and other current assets 1,306 198 - 1,504 ----------- ------------ ------------- ------------ Total current assets 35,604 4,319 - 39,923 ----------- ------------ ------------- ------------ Property and equipment, net 4,051 267 - 4,318 ----------- ------------ ------------- ------------ Other assets, net 74 163 - 237 ----------- ------------ ------------- ------------ Total assets $ 39,729 $ 4,749 $ - $ 44,478 =========== ============ ============= ============ LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 4,771 $ 317 $ - $ 5,088 Accrued expenses 6,175 400 - 6,575 Customer deposits 3,414 - - 3,414 Deferred revenue 2,494 1,177 - 3,671 Current portion of long-term obligations 40 5 - 45 ----------- ------------ ------------- ------------ Total current liabilities 16,894 1,899 - 18,793 ----------- ------------ ------------- ------------ Deferred revenue, less current portion - 315 - 315 ----------- ------------ ------------- ------------ Preferred stock, $0.01 par value - 8,480 (8,480) - Stockholders' equity (deficit): Common stock, $0.10 par value 1,108 6 137 1,251 Additional paid-in capital 44,894 6 8,343 53,243 Accumulated deficit (23,143) (5,957) - (29,100) ----------- ------------ ------------- ------------ 22,859 (5,945) 8,480 25,394 Less - treasury stock, at cost (24) - - (24) ----------- ------------ ------------- ------------ Total stockholders' equity (deficit) 22,835 (5,945) 8,480 25,370 ----------- ------------ ------------- ------------ $ 39,729 $ 4,749 $ - $ 44,478 =========== ============ ============= ============
See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS FOR THE QUARTER ENDED DECEMBER 31, 1996 (In thousands, except share and per share amounts) Pro Forma Pro Forma Davox AnswerSoft Adjustments Combined ------------ ----------- ----------- ------------- Revenue $15,488 $1,383 $- $16,871 Cost of revenue 6,132 205 - 6,337 ----------- ----------- ----------- ------------- Gross profit 9,356 1,178 - 10,534 ----------- ----------- ----------- ------------- Research, development and engineering expenses 1,628 253 - 1,881 Selling, general and administrative expenses 4,974 934 - 5,908 ----------- ----------- ----------- ------------- Total operating expenses 6,602 1,187 - 7,789 ----------- ----------- ----------- ------------- Income (loss) from operations 2,754 (9) - 2,745 Interest income, net 392 13 - 405 ---------- ----------- ----------- ------------- Income before provision for income taxes 3,146 4 - 3,150 Provision for income taxes 315 - - 315 ---------- ----------- ----------- ------------- Net income $2,831 $ 4 $- $2,835 ========== =========== =========== ============= Earnings per share: Basic $.23 Diluted $.21 Weighted average shares outstanding: Basic 12,253,883 Diluted 13,779,861
See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1996 (In thousands, except share and per share amounts) Pro Forma Pro Forma Davox AnswerSoft Adjustments Combined ---------- ------------ ------------- ------------ Revenue $53,642 $3,456 $ - $57,098 Cost of revenue 21,577 653 - 22,230 --------- ------- -------- --------- Gross profit 32,065 2,803 - 34,868 --------- ------- -------- --------- Research, development and engineering expenses 5,861 873 - 6,734 Selling, general and administrative expenses 17,213 2,491 - 19,704 --------- ------- -------- --------- Total operating expenses 23,074 3,364 - 26,438 --------- ------- -------- --------- Income (loss) from operations 8,991 (561) - 8,430 Interest income, net 1,137 80 - 1,217 --------- ------- -------- --------- Income (loss) before provision (benefit) for income taxes 10,128 (481) - 9,647 Provision (benefit) for income taxes 1,014 - (48)(i) 966 -------- -------- -------- --------- Net income (loss) $9,114 ($481) $ 48 $8,681 ======== ======== ======== ========= Earnings per share: Basic $.73 Diluted $.64 Weighted average shares outstanding: Basic 11,947,297 Diluted 13,593,082
(i) Reflects income tax benefit associated with AnswerSoft's loss at Davox's effective tax rate of 10%. See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET MARCH 31, 1997 (In thousands) Pro Forma Pro Forma ASSETS Davox AnswerSoft Adjustments Combined --------- ------------ ------------- ----------- Current assets: Cash and cash equivalents $ 27,357 $ 2,200 $ - $ 29,557 Short-term investments 6,540 - - 6,540 Accounts receivable, net 6,890 1,397 - 8,287 Prepaid expenses and other current assets 1,010 195 - 1,205 -------- ------------ ------------- ----------- Total current assets 41,797 3,792 - 45,589 -------- ------------ ------------- ----------- Property and equipment, net 4,202 302 $ - 4,504 -------- ------------ ------------- ----------- Other assets, net 108 43 - 151 -------- ------------ ------------- ----------- Total assets $ 46,107 $ 4,137 $ - $ 50,244 ======== ============ ============= =========== LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 4,888 $ 314 $ - $ 5,202 Accrued expenses 6,819 497 - 7,316 Customer deposits 2,016 - - 2,016 Deferred revenue 5,005 747 - 5,752 Current portion of long-term obligations 25 - - 25 -------- ------------ ------------- ----------- Total current liabilities 18,753 1,558 - 20,311 -------- ------------ ------------- ----------- Long-term obligations, less current portion - 315 - 315 -------- ------------ ------------- ----------- Preferred stock, $0.01 par value - 8,555 (8,555) - Stockholders' equity (deficit): Common stock, $0.10 par value 755 8 141 904 Additional paid-in capital 45,881 51 8,414 54,346 Accumulated deficit (19,258) (6,350) - (25,608) -------- ------------ ------------- ----------- 27,378 (6,291) 8,555 29,642 Less - treasury stock, at cost (24) - - (24) -------- ------------ ------------- ----------- Total stockholders' equity (deficit) 27,354 (6,291) 8,555 29,618 -------- ------------ ------------- ----------- $ 46,107 $ 4,137 $ - $ 50,244 ======== ============ ============= ===========
See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS FOR THE QUARTER ENDED MARCH 31, 1997 (In thousands, except share and per share amounts) Pro Forma Pro Forma Davox AnswerSoft Adjustments Combined ---------- ------------ ------------- ----------- Revenue $ 17,269 $ 1,726 $ - $ 18,995 Cost of revenue 6,309 352 - 6,661 ---------- ------------ ------------- ----------- Gross profit 10,960 1,374 - 12,334 ---------- ------------ ------------- ----------- Research, development and engineering expenses 1,882 384 - 2,266 Selling, general and administrative expenses 5,072 1,405 - 6,477 ---------- ------------ ------------- ----------- Total operating expenses 6,954 1,789 - 8,743 ---------- ------------ ------------- ----------- Income (loss) from operations 4,006 (415) - 3,591 Interest income, net 409 22 - 431 ---------- ------------ ------------- ----------- Income (loss) before provision (benefit) for income taxes 4,415 (393) - 4,022 Provision (benefit) for income taxes 530 - (47)(i) 483 ---------- ------------ ------------- ----------- Net income (loss) $ 3,885 ($393) $ 47 $ 3,539 ========== ============ ============= =========== Earnings per share: Basic $.28 Diluted $.26 Weighted average shares outstanding: Basic 12,478,572 Diluted 13,822,930
(i) Reflects income tax benefit associated with AnswerSoft's loss at Davox's effective tax rate of 12%. See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET JUNE 30, 1997 (In thousands) Pro Forma Pro Forma ASSETS Davox AnswerSoft Adjustments Combined ---------- ---------- ----------- ----------- Current assets: Cash and cash equivalents $ 28,374 $ 2,051 $ - $ 30,425 Short-term investments 9,504 - - 9,504 Accounts receivable, net 8,557 1,257 - 9,814 Prepaid expenses and other current assets 901 187 - 1,088 ---------- ---------- ----------- ----------- Total current assets 47,336 3,495 - 50,831 ---------- ---------- ----------- ----------- Property and equipment, net 4,362 293 - 4,655 ---------- ---------- ----------- ----------- Other assets, net 113 46 - 159 ---------- ---------- ----------- ----------- Total assets $ 51,811 $ 3,834 $ - $ 55,645 ========== ========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 4,660 $ 246 $ - $ 4,906 Accrued expenses 7,885 682 - 8,567 Customer deposits 2,956 - - 2,956 Deferred revenue 4,470 357 - 4,827 Current portion of long-term obligations - 2 - 2 ---------- ---------- ----------- ----------- Total current liabilities 19,971 1,287 - 21,258 ---------- ---------- ----------- ----------- Deferred revenue, less current portion - 315 - 315 Long-term obligations, less current portion - 440 - 440 ---------- ---------- ----------- ----------- Preferred stock, $0.01 par value - 8,555 (8,555) - Stockholders' equity (deficit): Common stock, $0.10 par value 1,156 9 142 1,307 Additional paid-in capital 45,891 53 8,413 54,357 Accumulated deficit (15,183) (6,825) - (22,008) ---------- ---------- ----------- ----------- 31,864 (6,763) 8,555 33,656 Less - treasury stock, at cost (24) - - (24) ---------- ---------- ----------- ----------- Total stockholders' equity (deficit) 31,840 (6,763) 8,555 33,632 ---------- ---------- ----------- ----------- $ 51,811 $ 3,834 $ - $ 55,645 ========== ========== =========== ===========
See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS FOR THE QUARTER ENDED JUNE 30, 1997 (In thousands, except share and per share amounts) Pro Forma Pro Forma Davox AnswerSoft Adjustments Combined ---------- ----------- ----------- ------------- Revenue $18,170 $1,787 $ - $19,957 Cost of revenue 6,672 420 - 7,092 --------- --------- --------- ----------- Gross profit 11,498 1,367 - 12,865 --------- --------- --------- ----------- Research, development and engineering expenses 2,013 487 - 2,500 Selling, general and administrative expenses 5,315 1,362 - 6,677 --------- --------- --------- ----------- Total operating expenses 7,328 1,849 - 9,177 --------- --------- --------- ----------- Income (loss) from operations 4,170 (482) - 3,688 Interest income, net 461 7 - 468 --------- --------- --------- ----------- Income (loss) before provision (benefit) for income taxes 4,631 (475) - 4,156 Provision (benefit) for income taxes 556 - (57)(i) 499 --------- --------- --------- ----------- Net income (loss) $ 4,075 ($475) $57 $ 3,657 ========= ========= ========= =========== Earnings per share: Basic $.29 Diluted $.26 Weighted average shares outstanding: Basic 12,731,749 Diluted 14,059,931
(i) Reflects income tax benefit associated with AnswerSoft's loss at Davox's effective tax rate of 12%. See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET SEPTEMBER 30, 1997 (In thousands) Pro Forma Pro Forma ASSETS Davox AnswerSoft Adjustments Combined ---------- ----------- ----------- ------------ Current assets: Cash and cash equivalents $ 27,386 $ 4,933 $ - $ 32,319 Short-term investments 15,599 - - 15,599 Accounts receivable, net 8,976 1,270 - 10,246 Prepaid expenses and other current assets 618 59 - 677 ---------- ----------- ----------- ------------ Total current assets 52,579 6,262 - 58,841 ---------- ----------- ----------- ------------ Property and equipment, net 4,867 635 - 5,502 ---------- ----------- ----------- ------------ Other assets, net 66 58 - 124 ---------- ----------- ----------- ------------ Total assets $ 57,512 $ 6,955 $ - $ 64,467 ========== =========== =========== ============ LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $4,849 $342 $ - $5,191 Accrued expenses 8,516 543 - 9,059 Customer deposits 2,773 - - 2,773 Deferred revenue 4,329 327 - 4,656 Current portion of long-term obligations - 2 - 2 ---------- ----------- ----------- ------------ Total current liabilities 20,467 1,214 - 21,681 ---------- ----------- ----------- ------------ Deferred revenue, less current portion - 326 - 326 Long-term obligations, less current portion - 440 - 440 ---------- ----------- ----------- ------------ Preferred stock, $0.01 par value - 13,555 (13,555) - Stockholders' equity (deficit): Common stock, $0.10 par value 1,163 10 183 1,356 Additional paid-in capital 46,136 57 13,372 59,565 Accumulated deficit (10,230) (8,647) - (18,877) ---------- ----------- ----------- ------------ 37,069 (8,580) 13,555 42,044 Less - treasury stock, at cost (24) - - (24) ---------- ----------- ----------- ------------ Total stockholders' equity (deficit) 37,045 (8,580) 13,555 42,020 ---------- ----------- ----------- ------------ $57,512 $6,955 $ - $64,467 ========== =========== =========== ============
See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 1997 (In thousands, except share and per share amounts) Pro Forma Pro Forma Davox AnswerSoft Adjustments Combined ---------- ----------- ----------- -------------- Revenue $19,806 $1,079 $- $20,885 Cost of revenue 6,644 351 - 6,995 --------- --------- ---------- ---------- Gross profit 13,162 728 - 13,890 --------- --------- ---------- ---------- Research, development and engineering expenses 2,242 518 - 2,760 Selling, general and administrative expenses 5,774 2,059 - 7,833 --------- --------- ---------- ---------- Total operating expenses 8,016 2,577 - 10,593 --------- --------- ---------- ---------- Income (loss) from operations 5,146 (1,849) - 3,297 Interest income, net 482 27 - 509 --------- --------- ---------- ---------- Income (loss) before provision (benefit) for income taxes 5,628 (1,822) - 3,806 Provision (benefit) for income taxes 675 - (219)(i) 456 --------- --------- ---------- ---------- Net income (loss) $4,953 ($1,822) $219 $3,350 ========= ========= ========== ========== Earnings per share: Basic $.26 Diluted $.23 Weighted average shares outstanding: Basic 12,886,838 Diluted 14,362,668
(i) Reflects income tax benefit associated with AnswerSoft's loss at Davox's effective tax rate of 12%. See accompanying notes to unaudited pro forma combined condensed financial statements.
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET DECEMBER 31, 1997 (In thousands) Pro Forma Pro Forma ASSETS Davox AnswerSoft Adjustments Combined ----------- ------------ ------------- ------------ Current assets: Cash and cash equivalents $ 25,366 $ 3,273 $ - $ 28,639 Short-term investments 23,802 - - 23,802 Accounts receivable, net 10,359 2,240 - 12,599 Deferred tax asset 9,319 - - 9,319 Prepaid expenses and other current assets 969 154 - 1,123 ----------- ------------ ------------- ------------ Total current assets 69,815 5,667 - 75,482 ----------- ------------ ------------- ------------ Property and equipment, net 4,585 663 - 5,248 ----------- ------------ ------------- ------------ Other assets, net 768 62 - 830 ----------- ------------ ------------- ------------ Total assets $ 75,168 $ 6,392 $ - $ 81,560 =========== ============ ============= ============ LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 4,987 $ 260 $ - $ 5,247 Accrued expenses 10,223 614 - 10,837 Customer deposits 2,018 - - 2,018 Deferred revenue, current 3,783 572 - 4,355 Current portion of long-term obligations - 178 - 178 ----------- ------------ ------------- ------------ Total current liabilities 21,011 1,624 - 22,635 ----------- ------------ ------------- ------------ Deferred revenue, noncurrent - 253 - 253 Long-term obligations, less current portion - 297 297 ----------- ------------ ------------- ------------ Preferred stock, $0.01 par value - 13,911 (13,911) - Stockholders' equity (deficit): Common stock, $0.10 par value 1,186 13 226 1,425 Additional paid-in capital 57,758 117 13,685 71,560 Cumulative translation adjustments - 7 - 7 Amounts due from officer - (414) - (414) Accumulated deficit (4,763) (9,416) - (14,179) ----------- ------------ ------------- ------------ 54,181 (9,693) 13,911 58,399 Less - treasury stock, at cost (24) - - (24) ----------- ------------ ------------- ------------ Total stockholders' equity (deficit) 54,157 (9,693) 13,911 58,375 ----------- ------------ ------------- ------------ $ 75,168 $ 6,392 $ - $ 81,560 =========== ============ ============= ============
See accompanying notes to unaudited pro forma combined condensed financial statements. EX-99.2 3 PRESS RELEASE OF DAVOX CORPORATION Exhibit 99.2 ------------ DAVOX CORPORATION COMPLETES MERGER WITH ANSWERSOFT, INC. Westford, MA and Richardson, TX (May 7, 1998) -- Davox Corporation (Nasdaq:DAVX) and AnswerSoft, Inc. today announced the completion of the merger of a subsidiary of Davox with and into AnswerSoft, resulting in AnswerSoft becoming a wholly-owned subsidiary of Davox. This merger, approved by the Davox and AnswerSoft stockholders at meetings held yesterday, is a tax-free, stock-for- stock transaction which will be accounted for as a pooling-of-interests. In connection with the merger, Davox will issue approximately 2,384,452 shares of its common stock. Commenting on the merger, Alphonse M. Lucchese, Chairman and Chief Executive Officer of Davox, said: "Our acquisition of AnswerSoft is key to our strategy to quickly enter and exploit the large inbound call center market. AnswerSoft has developed an enviable reputation for its ability to automate inbound customer interactions. We believe that the synergies between our two product lines and out shared set of corporate values will result in a robust set of products for our inbound, as well as our outbound call center customers." AnswerSoft's management team will report directly to Davox President Louis Marianacci. Mr. Marianacci noted that: "Davox is using a staged approach to fully integrate the strengths of AnswerSoft's product suite into its own. When complete, this fully integrated product line will deliver on the promise of a true, single platform 'universal agent' solution. No longer will call center managers have to deal with two different suppliers and methodologies for their inbound and outbound operations." Mr. Marianacci continued: "To help ensure this continuity of product development for our combined customers, I am pleased to announce that AnswerSoft Co-Founder and Chairman, Jeanne A. Bayless will join Davox as Senior Vice President of Marketing." Said Ms. Bayless: "Davox and AnswerSoft are known for their excellent records in deploying world class call center solutions and their shared commitment to customer satisfaction. Our goal is now to provide the most comprehensive, highly-integrated, solution available for inbound, outbound and blended call center environments." Davox Corporation, founded in 1981, is a leading supplier of unified call center solutions for businesses involved in collection, telemarketing, telesales, customer service, fund-raising and other mission-critical customer contact activities. Its Unison family of call center management solutions combine open -2- system, client/server, and relational database technology with sophisticated applications and superior customer support. Davox was ranked 16th in the Boston Globe's 1997 Top 100 Companies, 9th in the Boston Herald's 1997 HeraldHundred, and 23rd among the Best Small Corporations in the United States according to a 1997 article in Business Week Magazine. More information about Davox and its products and services can be obtained from the company's Web site at www.davox.com. AnswerSoft, founded in 1993, delivers industry leading Inter-Application Automation (IAA) solutions that optimize the value of customer-to-company interactions, personalizing service for telephone and Internet customer contacts. AnswerSoft consistently delivers award-winning products based on technological breakthroughs such as smart screen pop, intelligent call routing, data mining and Internet-enabled call centers. The company's customers include: Thomson Consumer Electronics, Compaq Computer Corporation, Gateway 2000, Sonoco, and Prudential Insurance of America. AnswerSoft was ranked 3rd among the "1997 Fast Tech 50," a premiere business award recognizing the 50 fastest-growing high technology companies in the Dallas metroplex. For further information, visit AnswerSoft's Web site at www.answersoft.com. In addition to historical information contained herein, this release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. The company's future actual results could differ materially from the forward-looking statements discussed or implied herein because of risks or uncertainties including, but not limited to, the difficulty of integrating the two companies, the potential failure to achieve the beneficial synergies expected to result from the merger, risks associated with competition and competitive pricing pressures, technological change, new product introduction and market acceptance, the ability of Davox to attract and retain key personnel, general economic conditions in the United States and worldwide markets served by Davox, and those other factors discussed from time to time in Davox's public reports filed with the Securities and Exchange Commission, such as those discussed under "Certain Factors That May Affect Future Results" in Davox's quarterly reports on Form 10- Q and annual report on Form 10-K, and the section entitled "Risk Factors" in the Company's recently filed Form S-4. NOTE: Davox and Unison are registered trademarks and LYRICall and IN/UNISON are trademarks of Davox Corporation. AnswerSoft is a registered trademark and Concerto is a trademark of AnswerSoft, Inc. -----END PRIVACY-ENHANCED MESSAGE-----