SEC Info - JTS Corp - ‘8-K’ for 2/23/98

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JTS Corp – ‘8-K’ for 2/23/98

As of: Monday, 3/9/98 · For: 2/23/98 · Accession #: 1047469-98-9085 · File #: 1-14442

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 3/09/98  JTS Corp                          8-K:2,7     2/23/98    2:60K                                    Merrill Corp/New/FA

Current Report — Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         8     28K 
 2: EX-99.1     Miscellaneous Exhibit                                 19     64K

8-K — Current Report
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Acquisition or Disposition of Assets Financial Statements and Exhibits
1	1st Page - Filing Submission
2	Item 2. Acquisition or Disposition of Assets
"	Item 7. Financial Statements and Exhibits

8-K 1st Page of 8 TOC ↑Top Previous Next ↓Bottom Just 1st
 
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      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)

     FEBRUARY 23, 1998

     JTS CORPORATION
      (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

  DELAWARE              COMMISSION FILE NUMBER      77-0364572
(STATE OR OTHER JURISDICTION OF         0-21085            (IRS EMPLOYER        
INCORPORATION OR ORGANIZATION)                           IDENTIFICATION NO.)    

     166 BAYPOINTE PARKWAY, SAN JOSE, CA 95134
      (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, INCLUDING ZIP CODE)

      (408) 468-1800
      (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

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8-K 2nd Page of 8 TOC 1st Previous Next ↓Bottom Just 2nd
Item 2.   Acquisition or Disposition of Assets.                                 
------------------------------------------------                                

  On February 23, 1998, JTS Corporation (the "Company") sold substantially
all of the assets of the Company's Atari Division, consisting primarily of Atari
home computer games and the intellectual property rights and license agreements 
associated with such games (the "Atari Assets"), to HIACXI, Corp. ("HIAC"), a   
wholly-owned subsidiary of Hasbro Interactive, Inc., for $5,000,000 in cash.    
The purchase price was determined based upon arm's-length negotiations between  
the Company and HIAC.  The Atari Assets were acquired by the Company in July    
1996 when the Company merged with Atari Corporation.  There is no material      
relationship between HIAC and the Company, any of its affiliates, any director  
or officer of the Company, or any associate of any such director or officer.    

Item 7. Financial Statements and Exhibits.                                      
-------------------------------------------                                     

(a)  Financial statements of business acquired.                       

Not applicable.                                             

(b)  Pro forma financial information.                                 

      Unaudited Pro Forma Condensed Combined Financial Statements of the
Company.                                                    

(c)  Exhibits                                                         

     99.1 Asset Purchase Agreement, dated February 23, 1998, between the Company
and HIAC.                                                   

      SIGNATURES

  Pursuant to the requirements of the Securities Exchange Act of 1934, JTS
Corporation has duly caused this report to be signed on its behalf by the       
undersigned hereunto duly authorized.                                           

                         JTS CORPORATION
Date:  March 9, 1998                         BY /s/  Joseph Prezioso            

                                      ----------------------------
                         Joseph Prezioso
                                 Chief Financial Officer

8-K 3rd Page of 8 TOC 1st Previous Next ↓Bottom Just 3rd
     JTS CORPORATION AND
     THE DISPOSITION OF THE ATARI DIVISION

    UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS

The following unaudited pro forma condensed financial statements give 
effect to the disposition of the Atari Division which was consummated on        
February 23, 1998.  The accompanying pro forma condensed balance sheet as of    
November 2, 1997 assumes that the disposition of the Atari Division by the      
Company took place on November 2, 1997.  The accompanying pro forma condensed   
statements of operations for the year ended February 2, 1997 and the nine       
months ended November 2, 1997 assumes that the disposition took place as of     
the beginning of the periods.  The pro forma condensed statements of            
operations do not include the effect of any nonrecurring charges directly       
attributable to the disposition.  The results are not necessarily indicative    
of what would have occurred had the disposition actually been made at the       
beginning of each of the respective periods presented or of future operations   
of the Company.                                                                 

8-K 4th Page of 8 TOC 1st Previous Next ↓Bottom Just 4th
     JTS CORPORATION AND
     THE DISPOSITION OF THE ATARI DIVISION

     UNAUDITED PRO FORMA CONDENSED BALANCE SHEET
      (IN THOUSANDS)

                                                        [Enlarge/Download Table]

                                                                                       AS OF NOVEMBER 2, 1997               
                                                                          ------------------------------------------------- 
                                                                          HISTORICAL          PRO FORMA              PRO    
                                                                             JTS             ADJUSTMENTS            FORMA   
                                                                                                                            
                              ASSETS                                                                                        
CURRENT ASSETS:                                                                                                             
  Cash, and cash equivalents and                                                                                            
   restricted cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . $   1,986           5,000 (b)           $   6,986 
  Trade and other receivable. . . . . . . . . . . . . . . . . . . . . . .     6,644                                   6,644 
  Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     7,463                                   7,463 
Prepaid and other current assets. . . . . . . . . . . . . . . . . . . . .     1,006                                   1,006 
                                                                          ---------                               --------- 
         Total current assets . . . . . . . . . . . . . . . . . . . . . .    17,099                                  22,099 

EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET . . . . . . . . . . . . . . . .    26,440                                  26,440 
OTHER INTANGIBLES . . . . . . . . . . . . . . . . . . . . . . . . . . . .       383                                     383 
                                                                          ---------                               --------- 
TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    43,922                                  48,922 
                                                                          ---------                               --------- 
                                                                          ---------                               --------- 
                    LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                   

CURRENT LIABILITIES:                                                                                                        
  Bank line of credit and short-term borrowing. . . . . . . . . . . . . . $   8,833                               $   8,833 
  Accounts payable -- Trade . . . . . . . . . . . . . . . . . . . . . . .    60,553                                  60,553 
  Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . .    23,836                                  23,836 
  Current portion of capitalized lease obligations and long-term debt . .     3,152                                   3,152 
                                                                          ---------                               --------- 
              Total current liabilities . . . . . . . . . . . . . . . . .    96,374                                  96,374 
LONG-TERM LIABILITES. . . . . . . . . . . . . . . . . . . . . . . . . . .    52,305                                  52,305 
STOCKHOLDERS' DEFICIT:                                                                                                      
 Preferred stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . .        --                                      -- 
 Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       165                                     165 
  Additional paid-in capital. . . . . . . . . . . . . . . . . . . . . . .   364,317                                 364,317 
  Notes receivable from stockholders. . . . . . . . . . . . . . . . . . .    (2,460)                                 (2,460)
  Accumulated deficit . . . . . . . . . . . . . . . . . . . . . . . . . .  (466,779)          5,000 (b)            (461,779)
                                                                          ---------                               --------- 
         Total Stockholders Equity. . . . . . . . . . . . . . . . . . . .  (104,757)                                (99,757)
                                                                          ---------                               --------- 
         TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    43,922                                  48,922 
                                                                          ---------                               --------- 
                                                                          ---------                               --------- 

      See notes to unaudited pro forma condensed financial statements.

8-K 5th Page of 8 TOC 1st Previous Next ↓Bottom Just 5th
     JTS CORPORATION AND
       THE DISPOSITION OF THE ATARI DIVISION

   UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS
   (IN THOUSANDS, EXCEPT PER SHARE DATA)

                                                                [Download Table]


                                      FOR THE NINE MONTHS ENDED NOVEMBER 2, 1997 
                                      -------------------------------------------
                                        HISTORICAL    PRO FORMA      PRO FORMA   
                                           JTS       ADJUSTMENTS                 
                                                                                 
REVENUES.............................   125,806      (1,689)(a)     124,117      
COST OF SALES........................  (174,092)                   (174,092)     
                                      ---------                   ---------      

GROSS MARGIN (DEFICIT)...............   (48,286)                    (49,975)     
OPERATING EXPENSES:                                                              
  Write off of in process R&D........   (38,008)                    (38,008)     
  Research and development...........   (15,880)                    (15,880)     
  Selling, general and                                                           
   administrative....................   (17,488)        879 (a)     (16,609)     
  Amortisation of existing                                                       
   technology & goodwill.............    (2,388)                     (2,388)     
                                      ---------                   ---------      
OPERATING LOSS.......................  (122,050)                   (122,860)     
OTHER INCOME (EXPENSE):                                                          
  Interest expense...................    (6,038)                     (6,038)     
  Other, net.........................    (2,566)      5,000 (b)       2,433      
                                      ---------                   ---------      
NET LOSS.............................  (130,654)                   (126,464)     
Dividends............................      (975)                       (975)     
NET LOSS ATTRIBUTABLE TO COMMON                                                  
 STOCKHOLDERS........................  (131,629)                   (127,439)     
                                      ---------                   ---------      
                                      ---------                   ---------      

NET LOSS PER COMMON SHARE............ $   (1.04)                  $   (1.01)     
SHARES USED IN COMPUTING NET LOSS                                                
 PER SHARE...........................   126,429                     126,429      
                                      ---------                   ---------      
                                      ---------                   ---------      

      See notes to unaudited pro forma condensed financial statements.

8-K 6th Page of 8 TOC 1st Previous Next ↓Bottom Just 6th
     JTS CORPORATION AND
     THE DISPOSITION OF THE ATARI DIVISION
     NOTES TO UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS

NOTE 1.                                                                         

 The disposition of the Atari Division assets was effective February 23,
1998.  These pro forma condensed financial statements illustrate the impact     
on the nine months ended November 2, 1997 as if the disposition occurred on     
November 2, 1997 for the pro forma condensed balance sheet and as at February   
2, 1997 for the pro forma condensed statement of operations.                    

NOTE 2. PRO FORMA ADJUSTMENTS                                                   

    Certain pro forma adjustments have been made to the accompanying pro forma
condensed balance sheet and statement of operations as described below:         

(a)  Elimination of the revenue and expenses for the Atari Division.  

(b)  Reflects the profit on disposal of the Atari Assets.             

8-K 7th Page of 8 TOC 1st Previous Next ↓Bottom Just 7th
     JTS CORPORATION AND
     THE DISPOSITION OF THE ATARI DIVISION

     UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS
     (IN THOUSANDS, EXCEPT PER SHARE DATA)

                                                        [Enlarge/Download Table]


                                                                FOR THE YEAR ENDED FEBRUARY 2, 1997       
                                                       ---------------------------------------------------
                                                       HISTORICAL             PRO FORMA          PRO FORMA
                                                          JTS                ADJUSTMENTS                  
                                                                                                          
REVENUES..............................................    90,530              (4,479)(a)           86,051 
COST OF SALES.........................................  (100,328)              5,655 (a)          (94,673)
                                                       ---------                                --------- 
GROSS MARGIN (DEFICIT)................................    (9,798)                                  (8,622)
OPERATING EXPENSES:...................................                                                    
  Write off of in process R&D.........................  (110,012)                                (110,012)
  Research and development............................   (12,849)                679 (a)          (12,170)
  Selling, general and administrative.................   (13,067)              3,647 (a)           (9,420)
  Amortization of existing technology & goodwill......    (3,923)                                  (3,923)
                                                       ---------                                --------- 
OPERATING LOSS........................................  (149,649)                                (144,147)
OTHER INCOME (EXPENSE):                                                                                   
  Interest expense....................................    (3,545)                                  (3,545)
  Other, net..........................................       699               5,000 (b)            1,564 
                                                                              (4,135)(a)                  
                                                       ---------                                --------- 
NET LOSS..............................................  (152,495)                                (146,128)
DIVIDENDS.............................................      (227)                                    (227)
                                                       ---------                                --------- 
NET LOSS ATTRIBUTABLE TO COMMON                                                                           
 STOCKHOLDERS.........................................  (152,722)                                (146,355)
                                                       ---------                                --------- 
                                                       ---------                                --------- 
NET LOSS PER COMMON SHARE............................. $   (1.81)                               $   (1.74)
SHARES USED IN COMPUTING NET LOSS                                                                         
 PER SHARE............................................    84,322                                   84,322 
                                                       ---------                                --------- 
                                                       ---------                                --------- 

      See notes to unaudited pro forma condensed financial statements.

8-K Last Page of 8 TOC 1st Previous Next ↓Bottom Just 8th
     JTS CORPORATION AND
   THE DISPOSITION OF THE ATARI DIVISION
     NOTES TO UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS

NOTE 1.                                                                         

 The disposition of the Atari Division assets was effective February 23,
1998.  These pro forma condensed financial statements illustrate the impact on  
the year ended February 2, 1997 as if the disposal occurred at the beginning of 
the period.                                                                     

NOTE 2. PRO FORMA ADJUSTMENTS                                                   

    Certain pro forma adjustments have been made to the accompanying pro forma
condensed balance sheet and statement of operations as described below:         

(a)  Elimination of the Atari Division revenue and associated cost of 
sales and expenses from the 1997 results.                   

(b)  Reflects the gain on sale of the Atari Assets.

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘8-K’ Filing	Date	First	Last	Other Filings

Filed on:	3/9/98	2
For Period End:	2/23/98	1	8
	11/2/97	3	6	10-Q, NT 10-Q
	2/2/97	3	8	10-K
				List all Filings

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Filing Submission 0001047469-98-009085 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

JTS Corp – ‘8-K’ for 2/23/98

As of: Monday, 3/9/98 · For: 2/23/98 · Accession #: 1047469-98-9085 · File #: 1-14442

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