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NEW YORK -- Quarterdeck Corp. (QDEK) registered an additional 1.64
million shares for selling shareholders, bringing the total registration to 5.15
million.
In a filing with the Securities and Exchange Commission, Quarterdeck said it
will receive no proceeds from the sale of the stock, which is being offered by
shareholders of companies Quarterdeck has acquired in the past.
Quarterdeck's shares closed unchanged Monday at 2 1/2.
Chief Financial Officer Frank Greico attributed the increased number of shares
in the registration to obligations related to two acquisitions made last year.
In the first case, former Limbex shareholder Inference Corp. (INFR) is
registering 1.44 million Quarterdeck shares it received when Quarterdeck
acquired the 80% of Limbex it didn't already own in mid-1996.
Under terms of the acquisition, Quarterdeck has to pay Inference the
equivalent of $3.6 million in stock at the one-year anniversary of the
transaction in August, Greico said.
Another 205,000 newly registered shares are related to Quarterdeck's
acquisition of Interlink, also last August, Greico said.
The other shares covered in the amended filing were registered earlier and are
being combined in one registration, Greico said.
Quarterdeck currently has about 40.1 million common shares outstanding, it
said.
In the filing, Quarterdeck also said that as a result of losses in previous
quarters, it suffered a "significant decrease in its cash position" and that it "has
experienced working capital deficits."
Greico said the company has been steady with about $10 million in cash at the
end of each of its last two quarters. Both of those quarters have been cash
positive from operations, he said. Quarterdeck's cash was depleted from
around $26 million last September by outlays from a restructuring, he said.
Greico said the working capital deficit means liabilities on Quarterdeck's
balance sheet are more than its assets. He said the deficit has been reduced
for two quarters running.
When Quarterdeck reports fiscal third-quarter earnings after markets close
Thursday, "you'll see the progress we're making in all of those areas," Greico
said.
Quarterdeck also received a new credit facility of up to $12 million in April,
and said in the filing it may explore other alternatives, if necessary, to finance
its operations.
Greico said the new line has better terms than a previous $15 million line
offered. The company has borrowed the minimum of $1.5 million on the new
line, he said.
Quarterdeck, of Santa Monica, Calif., makes memory management products
and communications software products. |
