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): SEPTEMBER 29, 2004
TECHTEAM GLOBAL, INC.
---------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-16284 38-2774613
---------------------------- ----------- ----------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File No.) Identification No.)
27335 West 11 Mile Road
Southfield, Michigan 48034
----------------------------------------- ------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: (248) 357-2866
------------------------------------------------------------
(Former name or former address if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
ITEM 8.01 OTHER EVENTS
In recent months, TechTeam Global, Inc. (the "Company") has
been working to renew certain of its contracts with its
existing customers, including the DaimlerChrysler, AG
Dealership Helpdesk ("Dealership Helpdesk") in the United
States, the DaimlerChrysler training program, and the Liberty
Mutual Insurance Company ("Liberty Mutual") corporate
helpdesk. This current report updates these efforts.
DaimlerChrysler has given the Company notice that it will
renew the Company's blanket purchase order for the
DaimlerChrysler training program, but it will not renew the
purchase orders for the Dealership Helpdesk in the United
States ("Purchase Orders"). The Company has provided helpdesk
services to the Dealership Helpdesk since 1994, and the
current Purchase Orders in effect expire on December 31, 2004.
Exercising its rights under the Purchase Orders,
DaimlerChrysler will transition approximately 70% of the
services performed by the Company for the Dealership Helpdesk
in the United States to the new vendor on or about November
30, 2004, and approximately 12% of the services will be
transitioned on or about January 31, 2005. Upon expiration of
the Purchase Orders, the remaining 18% of the services will
continue to be provided by the Company under a new purchase
order.
Through September 30, 2004, the Dealership Helpdesk generated
revenue of $4.7 million. From the first quarter to the third
quarter of 2004, there was a 17% decline in revenue on the
Dealership Helpdesk as the number of technicians providing
support to the Dealership Helpdesk decreased from an average
of 104 in the first quarter to an average of 88 for the third
quarter and is scheduled to decrease by six technicians in
November 2004. Services for the Dealership Helpdesk are
primarily performed from the Company's Southfield, Michigan
location.
The Company will continue to provide Dealership Helpdesk
services for DaimlerChrysler's European dealers. Through
September 30, 2004, the Company reported revenue of $3.3
million from helpdesk services for DaimlerChrysler's European
dealers. After the transition of the Dealership Helpdesk in
the United States, the Company anticipates that it will retain
revenue of approximately 50% of its current worldwide business
with DaimlerChrysler.
Liberty Mutual has informed the Company that it has made a
strategic decision to take its corporate helpdesk function in
house. On September 29, 2004, the Company extended its current
contract to perform helpdesk services for Liberty Mutual
through the end of July 2005. The contract extension is
intended to provide Liberty Mutual with sufficient time to
transition its helpdesk function to internal resources. The
Company has been informed by Liberty Mutual that the Company
will perform full helpdesk functions for Liberty Mutual
through June 2005, with call volume being transitioned during
July 2005. Through September 30, 2004, the
1
Liberty Mutual helpdesk generated revenue of $2.2 million.
Services for the Liberty Mutual helpdesk are performed from
the Company's Southfield, Michigan location.
In addition, the Company has been awarded new business which
has not been publicly announced, and it anticipates being able
to offset the loss of revenue noted herein with this and
other new business.
Certain statements contained in this Current Report on Form
8-K, including statements regarding the dates and plans for
the transition of business from the Company, the percentage of
business with DaimlerChrysler the Company anticipates being
transferred and retained, the decline in headcount on current
business, the anticipated issuance of new purchase orders, and
the ability of the Company to replace revenue, and other
statements contained herein regarding matters that are not
historical facts, are "forward-looking" statements (as such
term is defined in The Private Securities Litigation Reform
act of 1995, as amended). Because such statements are subject
to risks and uncertainties, actual results may differ
materially from those expressed or implied by such
forward-looking statements. Factors that could cause actual
results to differ materially from those expressed or implied
by such forward-looking statements include, but are not
limited to, a decision by DaimlerChrysler or Liberty Mutual to
modify their plans on the transition of business from the
Company, modifications in these companies plans on other
business performed by the Company, and those risks and
uncertainties discussed in filings made by the Company with
the Securities and Exchange Commission.
SIGNATURE
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 thereunto duly authorized.
TECHTEAM GLOBAL, INC.
By: /s/ Michael A. Sosin
-------------------------------
Michael A. Sosin
Secretary
Date: October 26, 2004
2