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Technology Stocks : Tumbleweed Communications Corp. (TMWD) -- Ignore unavailable to you. Want to Upgrade?

To: D.B. Cooper who wrote (238)	11/14/2000 10:41:07 PM
From: D.B. Cooper	Read Replies (1) \| Respond to of 290

This took longer than I thought Good Luck In particular, on August 1, 2000, Tumbleweed completed a public offering of 3,000,000 shares of its common stock of which 1,500,000 shares were sold by stockholders of Tumbleweed including Hikari Tsushin. Sales of substantial amounts of common stock, or the perception that these sales could occur, may depress prevailing market prices for the common stock. INTERFACE SYSTEMS, INC., A TUMBLEWEED SUBSIDIARY, IS A DEFENDANT IN SEVERAL PURPORTED SECURITIES CLASS ACTION LAWSUITS. On July 7, 2000, three complaints were filed by David H. Zimmer, Congressional Securities, Inc. and other plaintiffs against Interface and various additional defendants, including Interface's President and Chief Executive Officer, Robert A. Nero and Fiserv Correspondent Services, Inc., in the United States District Court for the Southern District of New York. The three cases contain substantially similar allegations of false and misleading representations by various defendants allegedly designed to inflate Interface's stock price. The complaints seek relief under the federal securities laws on behalf of purported classes of persons who purchased, held, or sold shares of Interface stock, and under various other causes of action. On September 27, 2000, Tumbleweed filed (i) a motion to strike or dismiss for failure to meet the certification requirements of the Private Securities Litigation Reform Act, (ii) a motion to dismiss for failure to state a claim, and (iii) a motion to dismiss because of improper venue, or in the alternative, motion to transfer the lawsuits to the Eastern District of Michigan. Plaintiffs' responsive filings are due on November 20, 2000. Although Tumbleweed believes these lawsuits are without merit, no assurance can be given about their outcome, and an adverse outcome could significantly harm Tumbleweed's business and operating results. Moreover, the costs in defending these complaints could harm future operating results. ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Tumbleweed transacts business in various foreign currencies. Accordingly, Tumbleweed is subject to exposure from adverse movements in foreign currency exchange rates. This exposure is primarily related to revenue and operating expenses denominated in each subsidiary's respective local currency. To date, Tumbleweed has not entered into any derivative financial instruments or hedging activities. Tumbleweed currently does not use financial instruments to hedge operating expenses in the United Kingdom or Japan dominated in the respective local currency. Tumbleweed assesses the need to utilize financial instruments to hedge currency exposures on an ongoing basis. Tumbleweed does not use derivative financial instruments for speculative trading purposes, nor does Tumbleweed hedge its foreign currency exposure in a manner that entirely offsets the effects of changes in foreign exchange rates. Tumbleweed regularly reviews its hedging program and may as part of this review determine at any time to change its hedging program. INTEREST RATE SENSITIVITY The primary objective of our investment activities is to preserve principal while at the same time maximizing the income we receive from our investments without significantly increasing risk. Some of the securities that we have invested in may be subject to market risk. This means that a change in prevailing interest rates may cause the principal amount of the investment to fluctuate. For example, if we hold a security that was issued with a fixed rate equal to the then-prevailing interest rate and the prevailing interest rate later rises, the fair value of our investment will decline. To minimize this risk, we maintain our portfolio of cash equivalents in commercial paper and money market funds. In general, money market funds are not subject to market risk because the interest paid on these funds fluctuates with the prevailing interest rate. As of September 30, 2000, none of our cash equivalents were subject to market risk by range of expected maturity and weighted-average interest rates, not including money market funds because these funds are not subject to market risk. -------------------------------------------------------------------------------- Recent filings: Nov 15, 1999 (Qtrly Rpt) \| Mar 30, 2000 (Annual Rpt) \| May 15, 2000 (Qtrly Rpt) \| Nov 14, 2000 (Qtrly Rpt) More filings for TMWD available from EDGAR Online \| Get a Free Trial to EDGAR Online Premium EDGAR Online: Research People in this company \| Full text Search --------------------------------------------------------------------------------