-----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, Ru0XDkyFzOnqC7t1KJLICeCXmisS5Jjay6mOZ6g05ylI3bsOYsAHtHwnyz1ML2R5 otW+K0I6ZckkuDMgU+kUtw== /in/edgar/work/0000909518-00-000644/0000909518-00-000644.txt : 20001020 0000909518-00-000644.hdr.sgml : 20001020 ACCESSION NUMBER: 0000909518-00-000644 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001018 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20001019 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GIGA INFORMATION GROUP INC CENTRAL INDEX KEY: 0000948263 STANDARD INDUSTRIAL CLASSIFICATION: [8700 ] IRS NUMBER: 061422860 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-21529 FILM NUMBER: 742518 BUSINESS ADDRESS: STREET 1: 139 MAIN STREET CITY: CAMBRIDGE STATE: MA ZIP: 02142 BUSINESS PHONE: 6179494900 MAIL ADDRESS: STREET 1: 139 MAIN STREET CITY: CAMBRIDGE STATE: MA ZIP: 02142 8-K 1 0001.txt ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 18, 2000 ---------------- GIGA INFORMATION GROUP, INC. ---------------------------- EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER Delaware File No. 0-21529 06-1422860 - --------------- ---------------- --------------- (State or other (Commission (I.R.S Employer jurisdiction or File Identification organization) Number) Number) 139 Main Street Cambridge, MA 02142 - ------------------------------------------------------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (617) 949-4900 -------------- (former name or former address, if changed since last report) Item 5. Other Events ------------ 1. Filed herewith is a copy of the Giga Information Group, Inc. (the "Company") Press Release, dated October 18, 2000, announcing its results of operations for the quarter ended September 30, 2000 and the nine months ended September 30, 2000. All normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results of operations for the periods presented have been included. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits ------------------------------------------------------------------ (a) Financial Statements of business acquired: Not applicable. (b) Pro Forma financial information: Not applicable. (c) Exhibit: (99) Press Release, dated October 18, 2000 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. GIGA INFORMATION GROUP, INC. By: /s/ Daniel M. Clarke ------------------------------- Daniel M. Clarke Senior Vice President and Chief Financial Officer Date: October 19, 2000 3 GIGA INFORMATION GROUP, INC. FORM 8-K CURRENT REPORT EXHIBIT INDEX ------------- Exhibit No. Description - ---------- ----------- (99) Press Release, dated October 18, 2000 4 EX-99 2 0002.txt GIGA LOGO FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT: Investors: Media: Karen Vahouny David Kitchen Qorvis Communications Director, Public Relations kvahouny@qorvis.com dkitchen@gigaweb.com 1 (703) 744-7809 1 (781) 792-2606 Giga Information Group 139 Main Street Cambridge, MA 02142 www.gigaweb.com 1 (617) 949-4900 GIGA INFORMATION GROUP REPORTS THIRD QUARTER FINANCIAL RESULTS QUARTERLY NET LOSS PER SHARE DROPS FROM $0.44 TO $0.20; COMPANY SETS ANOTHER QUARTERLY REVENUE RECORD CAMBRIDGE, Mass. (October 18, 2000) -- Giga Information Group, Inc. (NASDAQ: GIGX) today announced that revenues for the third quarter of 2000 increased 42% compared to the same period last year, from $12.5 million to $17.7 million. The Company posted a 54% drop in its net loss from $4.4 million, or $0.44 per share, in the third quarter of last year to $2.0 million, or $0.20 per share, in the third quarter of this year. The revenue growth was primarily attributable to the continued success in the sale of the Company's e-Business research, advisory and consulting services. The 50% reduction in operating losses, from $4.5 million in the third quarter of 1999 to $2.2 million in this year's third quarter, was due to the increase in revenues and a significant decrease in expenses, primarily sales and marketing, as a percentage of revenues. Robert Weiler, chairman and chief executive officer of Giga Information Group, noted, "We made dramatic progress in expanding our research and advisory services outside North America. The previously announced participation in GigaGroup SA not only builds our Western European sales presence but also will have a positive impact on our financial results. In addition to international expansion, another priority has been to add strategic partners, and our agreement with Nielsen//NetRatings is especially important in that it adds Internet measurement data to our analysis offering--a service none of our direct competitors offer." The Company plans to hold an investor conference call at 10 a.m. Eastern Daylight Time on Thursday, October 19, 2000, to review the third quarter performance and future outlook. The investor call will be accessible via webcast; click on the investor information section of the company's web site (www.gigaweb.com). THIRD QUARTER HIGHLIGHTS o Participating in a new venture, GigaGroup SA, focused on expanding Giga's research, analysis and consulting services in Belgium, France, Italy, Luxemburg, the Netherlands, Portugal, Spain and Switzerland. Seven European venture firms invested $4 million to fund the group, and Giga Information Group has a 19.9% ownership. o Entering the Japanese market through one agreement with a Japanese company for Web site analysis services and another with a leading reseller of high-end information products in the Asia-Pacific region. o Teaming with Nielsen//NetRatings, which allows Giga to combine quantitative Internet audience metrics with its Web assessment and benchmarking service, Web Site ScoreCard. o Signing a content partnership agreement with CNET's Enterprise channel, packaging CNET's editorial coverage of business technology with commentary from Giga's leading industry analysts. o Achieving a client retention rate of 83% for the first nine months of 2000 compared to 75% in the same period of last year. FIRST NINE MONTHS OF 2000 For the first nine months of 2000, revenues were $52 million versus $37.3 million for the comparable period of 1999--an increase of 39%. 2 Cost of services as a percentage of revenues dropped from 53% in the first nine months of 1999 to 46% in the same period of 2000. This, combined with revenue growth, resulted in a 48% reduction in operating losses, from $14.1 million in the first nine months of 1999 to $7.3 million in the comparable period of 2000. The net loss dropped from $14.2 million, or $1.42 per share, in the first nine months of last year, to $7.3 million, or $0.71 per share, in the same period this year. The Company also reported that its revenue run rate at September 30, 2000, was $74.8 million versus $57.9 million at the end of the third quarter of 1999, representing a 29% increase. Giga has defined revenue run rate as its Annualized Value plus the previous 12 months' revenues from services not included in Annualized Value, primarily events and Web Site ScoreCard. Annualized Value is the cumulative annualized subscription value of Giga's advisory services and ePractices contracts in effect at any given point in time. FUTURE OUTLOOK According to Weiler, the Company's priorities in the fourth quarter include continuing to focus on signing additional partnership agreements, building channels and sales outside North America, and improving the productivity of the sales and marketing organizations. "These, combined with ongoing cost structure adjustments such as the structure of the GigaGroup SA operation, position Giga to reach our goal of operating profitability in the fourth quarter of this year," he commented. For fiscal 2001, the Company currently expects revenue growth between 20-30% depending on the general growth rate of the IT Research Segment of the Syndicated Research Market. The Company also expects to continue to grow somewhat faster than the rate of growth of that segment of the market. Total costs and expenses are expected to increase at approximately one-half the rate of revenue growth, resulting in net income in each quarter of the year except the second quarter. The Company's goal is to achieve net income per share of between $0.05 to $0.10 and generate positive operating cash flow for the year, assuming there are no extraordinary items. The above forward-looking statements are based on current expectations and are being provided so that the Company can discuss its future outlook during its 3 upcoming investor conference call and with investors, potential investors, the media, financial analysts and others. The statements are subject to the paragraph at the end of this press release and assume that none of the factors mentioned in that paragraph will have a negative impact on expected results. ABOUT GIGA INFORMATION GROUP Giga Information Group (NASDAQ: GIGX) provides objective research, advice and continuous coaching on technology for e-Business. Giga's integrated suite of offerings helps clients make strategic decisions about the technologies, people and processes needed to excel in the new digital economy. Emphasizing close interaction between analysts and clients, Giga delivers support with the speed and scope necessary for e-Business. Giga began providing services in April 1996 and now has a global client base encompassing more than 1,200 organizations and over 120,000 licensed users. Its enterprise clients include companies that use, sell and invest in technology. Headquartered in Cambridge, Massachusetts, Giga has 10 other offices covering the Americas and Europe. Giga is also represented by distributors in other areas of the world. The Company's Web site can be accessed at http://www.gigaweb.com. The Company's logo with the name Giga Information Group is a registered trademark of Giga Information Group, Inc. ***************************************** Statements that are not historical fact may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but rather reflect Giga's current expectations concerning future events and results. Giga generally uses the words "believes", "expects", "intends", "plans", "anticipates", "likely", "will" and similar expressions to identify forward-looking statements. Such forward looking statements, including those concerning Giga's expectations, involve known and unknown risks, uncertainties and other factors, some of which are beyond Giga's control, which may cause Giga's actual results, performance or achievements, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward looking statements. In evaluating such statements as well as the future prospects of Giga, specific consideration should be given to various factors including the following: Giga's prior losses and anticipation of future losses; Giga's need to attract and retain qualified personnel; Giga's dependence on sales and renewals of subscription-based services; Giga's ability to achieve and sustain high renewal rates; Giga's ability to manage and sustain growth; Giga's future capital needs and the risks of working capital deficiency; Giga's dependence on key personnel; competition from other companies including those with greater resources than Giga; the risks associated with the development of new services and products; the potential for significant fluctuations in quarterly operating results; continued market acceptance of and demand for Giga services; uncertainties relating to proprietary rights; Giga's dependence on the Internet infrastructure; the risk of system failure; the risks related to content; the risks associated with international operations; and other risks as detailed from time-to-time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements as a result of new information, unanticipated events, or otherwise. ***************************************** 4 GIGA INFORMATION GROUP, INC.
CONSOLIDATED OPERATING RESULTS (IN THOUSANDS, EXCEPT SHARE AND QUARTER ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, PER SHARE DATA) ------------------------------- ------------------------------- (UNAUDITED) (UNAUDITED) 2000 1999 2000 1999 -------------- -------------- -------------- -------------- Revenues: Research, advisory and consulting $ 15,918 $ 11,819 $ 46,327 $ 33,186 Other, principally events 1,771 643 5,659 4,106 -------------- -------------- -------------- -------------- Total revenues 17,689 12,462 51,986 37,292 -------------- -------------- -------------- -------------- COSTS AND EXPENSES: Cost of services 7,896 5,715 23,789 19,858 Sales and marketing 8,048 7,665 24,269 22,289 Research and development 631 801 1,940 1,452 General and administrative 2,605 2,266 7,242 6,508 Depreciation and amortization 732 490 2,035 1,309 -------------- -------------- -------------- -------------- Total costs and expenses 19,912 16,937 59,275 51,416 -------------- -------------- -------------- -------------- LOSS FROM OPERATIONS (2,223) (4,475) (7,289) (14,124) -------------- -------------- -------------- -------------- INTEREST INCOME 40 143 224 607 INTEREST EXPENSE (97) 28 (57) 98 FOREIGN EXCHANGE GAIN/(LOSS) 58 (64) (272) (480) -------------- -------------- -------------- -------------- LOSS FROM OPERATIONS BEFORE INCOME TAXES (2,028) (4,424) (7,280) (14,095) INCOME TAX PROVISION/(BENEFIT) 1 10 (25) 62 -------------- -------------- -------------- -------------- NET LOSS $ (2,029) $ (4,434) $ (7,255) $ (14,157) ============== ============== ============== ============== RESULTS PER COMMON SHARE: HISTORICAL - BASIC AND DILUTED: NET LOSS $ (0.20) $ (0.44) $ (0.71) $ (1.42) ============== ============== ============== ============== WEIGHTED AVERAGE NUMBER OF SHARES 10,357,186 10,017,712 10,214,317 9,987,621 ============== ============== ============== ============== CONSOLIDATED BALANCE SHEET DATA (IN THOUSANDS, EXCEPT SHARE DATA) SEPTEMBER 30, DECEMBER 31, 2000 1999 ----------------- ----------------- (UNAUDITED) ASSETS Cash, cash equivalents and marketable securities $ 1,692 $ 6,182 Accounts receivable, net 13,496 21,199 Total current assets 26,786 37,340 Property and equipment, net 5,896 6,188 Total assets 34,152 44,195 LIABILITIES AND STOCKHOLDERS' DEFICIT Deferred revenues $ 33,173 $ 37,817 Debt, current portion - 527 Total current liabilities 44,361 50,012 Total liabilities 44,756 50,581 Total stockholders' deficit (10,604) (6,386) Total liabilities and stockholders' deficit 34,152 44,195 COMMON STOCK ISSUED AND OUTSTANDING 10,385,873 10,043,401
### 5 -----END PRIVACY-ENHANCED MESSAGE-----