UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
SCHEDULE 13D/A
Amendment No. 1
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a)
AND AMENDMENTS THERETO FILED PURSUANT
TO RULE 13d-2(a)
Southwall Technologies Inc.
---------------------------------
(Name of Issuer)
Common Stock, par value $.001 per share
---------------------------------------
(Title of Class of Securities)
844909101
----------------------------------------
(CUSIP Number)
Saul S. Cohen
Proskauer Rose LLP
1585 Broadway
New York, New York 10036
212-969-3000
------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
December 18, 2003
-----------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(e), 13(d)-1(f) or 13(d)-1(g), check the
following box |_|.
The Information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of the section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 1 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Needham & Company, Inc.
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 2,023,566
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,023,566
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,023,566
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
16.13%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
BD
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 2 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Needham Management Partners, L.P.
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 0
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
700,000
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
700,000
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
700,000
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.58%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 3 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Needham Emerging Growth Partners, L.P.
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 0
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
300,000
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
300,000
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
300,000
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.39%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 4 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Needham Contrarian Fund, L.P.
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 0
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
300,000
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
300,000
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
300,000
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.39%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 5 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Needham Emerging Growth Partners (Caymans), L.P.
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 0
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
100,000
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
100,000
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
100,000
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.80%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 6 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
George A. Needham
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
PF
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 30,000
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
5,000
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
30,000
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,000
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
35,000
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.28%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 7 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Needham Capital Partners II, L.P.
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 0
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
3,312,406
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,312,406
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,312,406
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
20.91%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 8 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Needham Capital Partners II (Bermuda), L.P.
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 0
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
464,317
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
464,317
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
464,317
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.57%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 9 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Needham Capital Partners III, L.P.
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 0
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
5,798,843
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,798,843
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,798,843
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.64%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 10 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Needham Capital Partners IIIA L.P.
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 0
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
598,878
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
598,878
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
598,878
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.56%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 11 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Needham Capital Partners III (Bermuda), L.P.
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 0
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
1,155,727
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,155,727
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,155,727
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.45%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 12 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Needham Capital Management L.L.C.
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 0
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
9,710,127
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
9,710,127
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,710,127
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
43.67%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
---------------------------------- -------------------------
CUSIP No. 844909101 Page 13 of 13
---------------------------------- -------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Needham Capital Management (Bermuda) L.L.C.
S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.
--------- --------------------------------------------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING 0
PERSON WITH
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
8 SHARED VOTING POWER
1,620,044
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------------------------------- -------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,620,044
--------------------------------- -------- -----------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,620,044
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.45%
--------- --------------------------------------------------------------------------------------------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- --------------------------------------------------------------------------------------------------------------------------
Statement on Schedule 13D/A
Pursuant to Rule 13d-1 under the
Securities Exchange Act of 1934, as amended
Item 1. Security and Issuer.
This Statement on Schedule 13D/A (this "Statement") relates to the common
stock, par value $0.001 per share (the "Common Stock"), of Southwall
Technologies Inc., a Delaware corporation (the "Company"). This statement amends
the Schedule 13D filed by the Reporting Persons (as hereinafter defined) on
March 8, 2004. The principal executive offices of the Company are located at
1029 Corporation Way, Palo Alto, California 94303.
Item 2. Identity and Background.
(a)-(c) and (f) This Statement is filed by Needham & Company, Inc., a
Delaware corporation ("Needham & Co."), Needham Management Partners, L.P., a
Delaware limited partnership ("NMP"), Needham Emerging Growth Partners, L.P., a
Delaware limited partnership ("NEGP"), Needham Contrarian Fund, L.P., a Delaware
limited partnership ("NCF"), Needham Emerging Growth Partners (Caymans), L.P., a
Cayman Islands limited partnership ("NEGPC"), George A. Needham, a natural
person who is a U.S. citizen, Needham Capital Partners II, L.P., a Delaware
limited partnership ("NCPII"), Needham Capital Partners II (Bermuda), L.P., a
Bermuda limited partnership ("NCPIIB"), Needham Capital Partners III, L.P, a
Delaware limited partnership ("NCPIII"), Needham Capital Partners IIIA, L.P, a
Delaware limited partnership ("NCPIIIA"), Needham Capital Partners III
(Bermuda), L.P., a Bermuda limited partnership ("NCPIIIB"), Needham Capital
Management L.L.C., a Delaware limited liability company ("NCM"), and Needham
Capital Management (Bermuda) L.L.C., a Bermuda limited liability company
("NCMB"). Needham & Co., NMP, NEGP, NCF, NEGPC, George A. Needham, NCPII,
NCPIIB, NCPIII, NCPIIIA, NCPIIIB, NCM and NCMB are collectively referred to in
this Statement as the "Reporting Persons."
The principal business office and mailing address of the Reporting Persons
is c/o Needham & Company, Inc., 445 Park Avenue, New York, New York 10022.
Needham & Co. is an investment banking, securities and asset management firm.
The business of NMP is serving as the general partner of NEGP, NCF and NEGPC,
each of which are private investment partnerships. The business of NCM is
serving as the general partner of NCPII, NCPIII and NCPIIIA, each of which are
private investment partnerships. The business of NCMB is serving as the general
partner of NCPIIB and NCPIIIB, each of which are private investment
partnerships. The present principal occupation of George A. Needham is Chairman
of the Board and Chief Executive Officer of Needham & Co. The name and principal
occupation or employment of the executive officers, directors or general
partners of the Reporting Persons who are corporations, limited partnerships and
limited liability companies are set forth on Schedule I to this Statement.
(d) and (e) During the past five years, none of the Reporting Persons or,
to the best knowledge of the Reporting Persons, any of the persons listed on
Schedule I, (i) has been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) or
(ii) has been a party to a civil proceeding of a judicial or administrative body
of competent jurisdiction and as a result of such proceeding was or is subject
to a judgment, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, Federal or State securities laws
or finding any violation with respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration.
The Schedule 13D filed by the Reporting Person on March 8, 2004 reported
the issuance by the Company to the Reporting Persons of warrants to purchase
shares of Common Stock and Secured Convertible Promissory Notes ("Notes")
pursuant to an Investment Agreement by and among the Company, certain of the
Reporting Persons and Dolphin Direct Equity Partners, L.P., (collectively, the
"Investor Parties") which agreement was subsequently amended and restated, as
more fully described in the Schedule 13D (the "Investment Agreement").
Pursuant to Section 4.14 of the Investment Agreement, if, as part of its
restructuring efforts, the Company issues any equity or warrants, options,
rights or other instruments exercisable or convertible into equity, to any
creditor, landlord, employee, director, agent or consultant, then the Company is
required to issue additional warrants to any Investor Parties who at the time of
such issuance had pursuant to the Investment Agreement provided loan guaranties
to the Company or purchased Secured Convertible Promissory Notes from the
Company in such amounts as would allow the Investor Parties to maintain their
aggregate ownership percentage (on a fully-diluted basis) as if such issuance
had not occurred. Section 4.14 of the Investment Agreement also provides that
if, as part of the Company's restructuring efforts, the Company issues notes or
other debt instruments to any of its creditors, then it is required to issue
additional warrants to such Investor Parties representing the right to purchase
that number of shares of Common Stock equal to the product of (x) 1.25 and (y)
the original principal amount of such note or debt instrument.
The Reporting Persons inadvertently omitted to report the transactions
described below in the Schedule 13D relating to warrants issued to Needham & Co.
pursuant to the Investment Agreement.
On December 18, 2003, Needham & Co. entered into an agreement (the
"Needham/Dolphin Agreement") with Dolphin Direct Equity Partners, L.P.
("Dolphin") pursuant to which Dolphin agreed to provide funds in connection with
the loan guaranty provided by Needham & Co. to the Company and Needham & Co.
agreed to transfer to Dolphin one-third of the warrants issued to Needham & Co.
by the Company in connection with such loan guaranty, including warrants issued
pursuant to the anti-dilution rights set forth in Section 4.14 of the Investment
Agreement. Pursuant to the Needham/Dolphin Agreement, Needham & Co. transferred
to Dolphin, at Needham's cost, warrants exercisable for 313,705 shares of Common
Stock at an exercise price of $0.01 per share issued to Needham on December 18,
2003, which warrants constituted a portion of the warrant for 941,155 shares of
Common Stock issued to Needham & Co. pursuant to the Investment Agreement on
December 18, 2003 (which warrant is described in a Schedule 13D filed by Needham
& Co. on December 29, 2003), as well as the warrants described below issued by
the Company to Needham & Co. pursuant to Section 4.14 of the Investment
Agreement.
On December 18, 2003, the Company and Pacific Business Funding, a division
Greater Bay Bank, N.A. ("PBF"), entered into a Forbearance Agreement in which
PBF agreed to forbear until May 5, 2004 from pursuing its remedies pursuant to
certain defaults by the Company under a factoring line of credit previously
entered into between the parties. In connection with the execution of the
Forbearance Agreement, the Company issued PBF a warrant to purchase a total of
250,000 shares of Common Stock at an exercise price of $0.01 per share.
Additionally, on December 18, 2003, the Company's directors were issued options
exercisable for 56,461 shares of Common Stock in lieu of cash fees for
attendance at Board meetings. As a result of these issuances, pursuant to
Section 4.14 of the Investment Agreement, the Company issued to Needham & Co.
warrants to purchase a total of 26,551 shares of common stock at an exercise
price of $0.01 per share. Pursuant to the Needham/Dolphin Agreement, Needham &
Co. then transferred warrants exercisable for 5,772 shares of Common Stock to
Dolphin at Needham's cost.
On January 15, 2004, the Company issued to Needham & Co. a warrant to
purchase 941,115 shares of Common Stock at an exercise price of $0.01 per share
(the "January 2004 Warrant"). The January 2004 Warrant was issued to Needham &
Co. pursuant to the terms of the Investment Agreement in consideration for
providing a loan guaranty. Pursuant to the Needham/Dolphin Agreement, Needham &
Co. then transferred warrants exercisable for 313,705 shares of Common Stock to
Dolphin at Needham's cost.
On January 19, 2004, PBF consented to a guarantee by Southwall Europe GmbH
of the obligation owed by the Company to Teijin Limited pursuant to a Guaranteed
Loan Agreement. In connection with the consent, the Company issued PBF a warrant
to purchase a total of 75,000 shares of common stock at an exercise price of
$0.01 per share. As a result of this issuance, pursuant to Section 4.14 of the
Investment Agreement, the Company issued to Needham & Co. warrants to purchase a
total of 10,082 shares of common stock at an exercise price of $0.01 per share.
Pursuant to the Needham/Dolphin Agreement, Needham & Co. then transferred
warrants exercisable for 2,649 shares of Common Stock to Dolphin at Needham's
cost.
On January 30, 2004 PBF agreed to amend the Forbearance Agreement to allow
for changes to the Investment Agreement. In connection with the amendment, the
Company issued to PBF a warrant to purchase a total of 35,000 shares of Common
Stock at an exercise price of $0.01 per share. As a result of this issuance,
pursuant to Section 4.14 of the Investment Agreement, the Company issued to
Needham & Co. warrants to purchase a total of 4,702 shares of Common Stock at an
exercise price of $0.01 per share. Pursuant to the Needham/Dolphin Agreement,
Needham & Co. then transferred warrants exercisable for 1,235 shares of Common
Stock to Dolphin at Needham's cost.
Item 4. Purpose of Transaction.
The Investment Agreement pursuant to which the warrants were issued to
Needham & Co. is described in the 13D filed by the Reporting Persons on March 8,
2003.
Other than as specified in this Item 4, the Reporting Persons have no plans
or proposals which relate to or which would result in or relate to any of the
actions specified in paragraphs (a) through (j) of Item 4 of Schedule 13D.
Item 5. Interest in Securities of the Issuer.
(a) (1) Needham & Co. owns of record and beneficially 737,067 shares of
Common Stock and the warrants described in item 3 above, which are immediately
exercisable for an aggregate of 1,286,499 shares of Common Stock. Assuming the
full exercise of the warrants, Needham & Co. would own of record 2,023,566
shares of Common Stock, which would constitute 16.13% of the issued and
outstanding Common Stock.
(2) NEGP owns of record and beneficially 300,000 shares of Common Stock,
which constitutes 2.39% of the issued and outstanding Common Stock.
(3) NCF owns of record and beneficially 300,000 shares of Common Stock,
which constitutes 2.39% of
the issued and outstanding Common Stock.
(4) NEGPC owns of record and beneficially 100,000 shares of Common Stock,
which constitutes 0.80%
of the issued and outstanding Common Stock.
(5) NMP may be deemed to own beneficially the aggregate amount of 700,000
shares of Common Stock owned by NEGP, NCF and NEGPC by virtue of its position as
general partner of those Reporting Persons, which amount constitutes 5.58% of
the issued and outstanding Common Stock. NMP disclaims beneficial ownership of
all of the reported shares of Common Stock owned by NEGP, NCF and NEGPC, and the
inclusion of these shares of Common Stock in this report shall not be deemed an
admission by it of beneficial ownership of such shares for any purpose.
(6) George A. Needham owns of record and beneficially 30,000 shares of
Common Stock. He also may be deemed to beneficially own (i) the shares of Common
Stock and the warrants owned by Needham & Co. by virtue of his position in and
share ownership of Needham & Co., (ii) the shares of Common Stock owned by NEGP,
NCF and NEGPC by virtue of his position as general partner of NMP, the general
partner of NEGP, NCF and NEGPC, (iii) the Notes and warrants owned by NCPII,
NCPIII and NCPIIIA by virtue of his position as a manager of NCM, the general
partner of NCPII, NCPIII and NCPIIIA, (iv) the Notes and warrants owned by
NCPIIB and NCPIIIB by virtue of his position as a manager of NCMB, and (v) 5,000
shares of Common Stock owned by family members of Mr. Needham. The aggregate
amount of shares of Common Stock owned by Mr. Needham and his family members is
35,000, which constitutes 0.28% of the issued and outstanding shares of Common
Stock. Mr. Needham disclaims beneficial ownership of all of the reported shares
of Common Stock and the warrants, except the shares of Common Stock he owns of
record, and the inclusion of these shares in this report shall not be deemed an
admission by him of beneficial ownership for any purpose.
(7) NCPII owns of record and beneficially (i) a Note in the principal
amount of $877,058, which is convertible to 877,058 shares of Preferred Stock,
which in turn is
convertible to 877,058 shares of Common Stock, subject to adjustments applicable
to the Note and Preferred Stock, and (ii) a Warrant which is exercisable for
2,435,348 shares of Common Stock.
(8) NCPIIB owns of record and beneficially (i) a Note in the principal
amount of $122,942, which is convertible to 122,942 shares of Preferred Stock,
which in turn is convertible to 122,942 shares of Common Stock, subject to
adjustments applicable to the Note and Preferred Stock, and (ii) a Warrant which
is exercisable for 341,375 shares of Common Stock.
(9) NCPIII owns of record and beneficially (i) a Note in the principal
amount of $1,535,416, which is convertible to 1,535,416 shares of Preferred
Stock, which in turn is convertible to 1,535,416 shares of Common Stock, subject
to adjustments applicable to the Note and Preferred Stock, and (ii) a Warrant
which is exercisable for 4,263,427 shares of Common Stock.
(10) NCPIIIA owns of record and beneficially (i) a Note in the principal
amount of $158,571, which is convertible to 158,571 shares of Preferred Stock,
which in turn is convertible to 158,571 shares of Common Stock, subject to
adjustments applicable to the Note and Preferred Stock, and (ii) a Warrant which
is exercisable for 440,307 shares of Common Stock.
(11) NCPIIIB owns of record and beneficially (i) a Note in the principal
amount of $306,013, which is convertible to 306,013 shares of Preferred Stock,
which in turn is convertible to 306,013 shares of Common Stock, subject to
adjustments applicable to the Note and Preferred Stock, and (ii) a Warrant which
is exercisable for 849,714 shares of Common Stock.
(12) NCM may be deemed to own beneficially the Notes and warrants owned by
NCPII, NCPIII and NCPIIIA by virtue of its position as general partner of those
Reporting Persons, and accordingly may be deemed to beneficially own the
9,710,127 shares of Common Stock underlying those convertible securities, which
amount constitute 43.67% of the issued and outstanding Common Stock. NCM
disclaims beneficial ownership of all of the reported shares of Common Stock
underlying the Notes and warrants owned by NCPII, NCPIII and NCPIIIA, and the
inclusion of these shares of Common Stock in this report shall not be deemed an
admission by it of beneficial ownership of such shares for any purpose.
(13) NCMB may be deemed to own beneficially the Notes and warrants owned by
NCPIIB and NCPIIIB by virtue of its position as general partner of those
Reporting Persons, and accordingly may be deemed to beneficially own the
1,620,044 shares of Common Stock underlying those convertible securities, which
amount constitute 11.45% of the issued and outstanding Common Stock. NCMB
disclaims beneficial ownership of all of the reported shares of Common Stock
underlying the Notes and warrants owned by NCPIIB and NCPIIIB, and the inclusion
of these shares of Common Stock in this report shall not be deemed an admission
by it of beneficial ownership of such shares for any purpose.
(b) Needham & Co. has the sole power to direct the vote and disposition of
737,067 shares of Common Stock directly owned by it, and, assuming the exercise
of the Warrants in full, Needham & Co. will have the sole power to direct the
vote and disposition of 1,286,499 shares of Common Stock issuable upon the
exercise of the Warrants. NMP, the general partner of NEGP, and NEGP have shared
power to direct the vote and disposition of 300,000 shares of Common Stock
directly owned by NEGP. NMP, the general partner of NCF, and NCF have shared
power to direct the vote and disposition of 300,000 shares of Common Stock
directly owned by NCF. NMP, the general partner of NEGPC, and NEGPC have shared
power to direct the vote and disposition of 100,000 shares of Common Stock
directly owned by NEGPC. NCM, the general partner of NCPII, and NCPII have
shared power to direct the vote and disposition of 3,312,406 shares of Common
Stock issuable upon the conversion of the Note (assuming the simultaneous
conversion of the shares of Series A Preferred Stock underlying the Note into
shares of Common Stock) and the exercise of the Warrant owned by NCPII. NCMB,
the general partner of NCPIIB, and NCPIIB have shared power to direct the vote
and disposition of 464,317 shares of Common Stock issuable upon the conversion
of the Note (assuming the simultaneous conversion of the shares of Series A
Preferred Stock underlying the Note into shares of Common Stock) and the
exercise of the Warrant owned by NCPIIB. NCM, the general partner of NCPIII, and
NCPIII have shared power to direct the vote and disposition of 5,798,843 shares
of Common Stock issuable upon the conversion of the Note (assuming the
simultaneous conversion of the shares of Series A Preferred Stock underlying the
Note into shares of Common Stock) and the exercise of the Warrant owned by
NCPIII. NCM, the general partner of NCPIIIA, and NCPIIIA have shared power to
direct the vote and disposition of 598,878 shares of Common Stock issuable upon
the conversion of the Note (assuming the simultaneous conversion of the shares
of Series A Preferred Stock underlying the Note into shares of Common Stock) and
the exercise of the Warrant owned by NCPIIIA. NCMB, the general partner of
NCPIIIB, and NCPIIIB have shared power to direct the vote and disposition of
1,155,727 shares of Common Stock issuable upon the conversion of the Note
(assuming the simultaneous conversion of the shares of Series A Preferred Stock
underlying the Note into shares of Common Stock) and the exercise of the Warrant
owned by NCPIIIB. George A. Needham has the sole power to direct the vote and
disposition of 30,000 shares of Common Stock directly owned by him. Mr. Needham
has shared power to direct the vote of 5,000 shares of Common Stock owned
directly by members of his immediate family. George A. Needham may be deemed to
have shared power to direct the vote and disposition of (i) the shares of Common
Stock owned by Needham & Co., and the shares of Common Stock issuable upon
exercise of the warrants owned by Needham & Co., by virtue of his position in
and share ownership of Needham & Co., (ii) the shares of Common Stock owned
directly by NEGP, NCF and NEGPC because he serves as managing general partner of
NMP, the general partner of NEGP, NCF and NEGPC, (iii) the shares of Common
Stock issuable upon the conversion of the Notes (assuming the simultaneous
conversion of the shares of Series A Preferred Stock underlying the Notes into
shares of Common Stock) and the exercise of the warrants owned directly by
NCPII, NCPIII and NCPIIIA because he serves as a manager of NCM, the general
partner of NCPII, NCPIII and NCPIIIA, and (iv) the shares of Common Stock
issuable upon the conversion of the Notes (assuming the simultaneous conversion
of the shares of Series A Preferred Stock underlying the Notes into shares of
Common Stock) and the exercise of the warrants owned directly by NCPIIB and
NCPIIIB because he serves
as a manager of NCMB, the general partner of NCPIIB and NCPIIIB. Mr. Needham
disclaims beneficial ownership of the shares of Common Stock owned by Needham &
Co., NEGP, NCF, NEGPC, NCPII, NCPIIB, NCPIII, NCPIIIA and NCPIIIB.
(c) Except as noted above, the Reporting Persons did not effect any
transactions in the securities of the Company during the past 60 days.
(d) and (e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with respect
to Securities of the Issuer.
Other than as described in Item 4 above, to the knowledge of the Reporting
Persons, there are no contracts, arrangements, understandings or relationships
(legal or otherwise) among the persons named in Item 2 with respect to any
securities of the Company.
Item 7. Material to be Filed as Exhibits.
1. Joint Filing Agreement
SIGNATURE
After reasonable inquiry and to the best knowledge and belief of the
undersigned, the information set forth in this statement is true, complete and
correct.
Dated: April 23, 2004
NEEDHAM & COMPANY, INC.
By:/s/ Glen W. Albanese
-----------------------------------------
Name: Glen W. Albanese
Title: Chief Financial Officer
/s/ George A. Needham
-----------------------------------------
George A. Needham
NEEDHAM EMERGING GROWTH PARTNERS, L.P.
By: Needham Management Partners, L.P.,
its general partner
By:/s/ Glen W. Albanese
-----------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CONTRARIAN FUND, L.P.
By: Needham Management Partners, L.P.,
its general partner
By:/s/ Glen W. Albanese
-----------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM EMERGING GROWTH PARTNERS (CAYMANS), L.P.
By: Needham Management Partners, L.P.,
its general partner
By:/s/ Glen W. Albanese
------------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM MANAGEMENT PARTNERS, L.P.
By: /s/ Glen W. Albanese
-------------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL PARTNERS II, L.P.
By: Needham Capital Management L.L.C.,
its general partner
By:/s/ Glen W. Albanese
------------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL PARTNERS II (BERMUDA), L.P.
By: Needham Capital Management (Bermuda) L.L.C.,
its general partner
By:/s/ Glen W. Albanese
-----------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL PARTNERS III, L.P.
By: Needham Capital Management L.L.C.,
its general partner
By:/s/ Glen W. Albanese
------------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL PARTNERS IIIA, L.P.
By: Needham Capital Management L.L.C.,
its general partner
By:/s/ Glen W. Albanese
-----------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL PARTNERS III (BERMUDA), L.P.
By: Needham Capital Management (Bermuda) L.L.C.,
its general partner
By:/s/ Glen W. Albanese
------------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL MANAGEMENT, L.L.C.
By:/s/ Glen W. Albanese
------------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL MANAGEMENT (BERMUDA), L.L.C.
By:/s/ Glen W. Albanese
-----------------------------------------
Name: Glen W. Albanese
Title: General Partner
Schedule I
Executive Officers and Directors of Needham & Company, Inc.
Name Of Officer Principal Employment/Office With
Or Director Business Address Needham & Company, Inc.
---------------- ---------------------------- --------------------------------------------------
c/o Needham & Company, Inc.
George A. Needham 445 Park Avenue Chairman of the Board & Chief Executive Officer
New York, New York 10022
John C. Michaelson c/o Needham & Company, Inc. President of Needham Funds
445 Park Avenue
New York, New York 10022
John J. Prior, Jr. c/o Needham & Company, Inc. Managing Director, Corporate Finance
445 Park Avenue
New York, New York 10022
Chad W. Keck c/o Needham & Company, Inc. Managing Director, Corporate Finance, West Coast
445 Park Avenue
New York, New York 10022
Warren M. Foss c/o Needham & Company, Inc. Managing Director, Institutional Sales
445 Park Avenue
New York, New York 10022
Vincent J. Keney c/o Needham & Company, Inc. Managing Director, OTC Trading
445 Park Avenue
New York, New York 10022
Theodor J. Kundtz c/o Needham & Company, Inc. Managing Director, Equity Research
445 Park Avenue
New York, New York 10022
Glen W. Albanese c/o Needham & Company, Inc. Managing Director, Chief Financial Officer
445 Park Avenue
New York, New York 10022
Andre R. Horn c/o Needham & Company, Inc. Chairman Emeritus
445 Park Avenue
New York, New York 10022
Edgar F. Heizer, Jr. c/o Needham & Company, Inc. Director
445 Park Avenue Chairman of the Board of Heizer Corporation
New York, New York 10022
Eugene R. White c/o Needham & Company, Inc. Director
445 Park Avenue
New York, New York 10022
Joseph H. Reich c/o Needham & Company, Inc. Director
445 Park Avenue Managing General Partner of Centennial Associates
New York, New York 10022
Schedule I
Needham Management Partners, L.P. is the sole general partner of: (a)
Needham Emerging Growth Partners, L.P., (b) Needham Contrarian Fund, L.P., and
(c) Needham Emerging Growth Partners (Caymans), L.P. Needham Capital Management
L.L.C. is the sole general partner of (a) Needham Capital Partners II, L.P., (b)
Needham Capital Partners III, L.P. and (c) Needham Capital Partners IIIA, L.P.
Needham Capital Management (Bermuda) L.L.C. is the sole general partner of (a)
Needham Capital Partners II (Bermuda), L.P. and (b) Needham Capital Partners III
(Bermuda), L.P.
The general partners of Needham Management Partners, L.P. are:
Name Of Officer Principal Employment/Office With
Or Director Business Address Needham & Company, Inc.
--------------- ---------------- ---------------------------------
George A. Needham c/o Needham & Company, Inc. Chairman of the Board & Chief Executive Officer
445 Park Avenue
New York, New York 10022
John C. Michaelson c/o Needham & Company, Inc. President of Needham Funds
445 Park Avenue
New York, New York 10022
Jane K. Kloppenburg c/o Needham & Company, Inc. Managing Director, Portfolio Manager
445 Park Avenue
New York, New York 10022
Glen W. Albanese c/o Needham & Company, Inc. Managing Director, Chief Financial Officer
445 Park Avenue
New York, New York 10022
The general partners of Needham Capital Management L.L.C. are:
Name Of Officer Principal Employment/Office With
Or Director Business Address Needham & Company, Inc.
--------------- ---------------- --------------------------------
George A. Needham c/o Needham & Company, Inc. Chairman of the Board & Chief Executive Officer
445 Park Avenue
New York, New York 10022
John C. Michaelson c/o Needham & Company, Inc. President of Needham Funds
445 Park Avenue
New York, New York 10022
John J. Prior, Jr. c/o Needham & Company, Inc. Managing Director, Corporate Finance
445 Park Avenue
New York, New York 10022
Thomas P. Shanahan c/o Needham & Company, Inc. Managing Director, Needham Asset Management
445 Park Avenue
New York, New York 10022
Name Of Officer Principal Employment/Office With
Or Director Business Address Needham & Company, Inc.
--------------- ---------------- --------------------------------
Glen W. Albanese c/o Needham & Company, Inc. Managing Director, Chief Financial Officer
445 Park Avenue
New York, New York 10022
The general partners of Needham Capital Management (Bermuda) L.L.C. are:
Name Of Officer Principal Employment/Office With
Or Director Business Address Needham & Company, Inc.
------------------- ---------------- --------------------------------
George A. Needham c/o Needham & Company, Inc. Chairman of the Board & Chief Executive Officer
445 Park Avenue
New York, New York 10022
John C. Michaelson c/o Needham & Company, Inc. President of Needham Funds
445 Park Avenue
New York, New York 10022
John J. Prior, Jr. c/o Needham & Company, Inc. Managing Director, Corporate Finance
445 Park Avenue
New York, New York 10022
Thomas P. Shanahan c/o Needham & Company, Inc. Managing Director, Needham Asset Management
445 Park Avenue
New York, New York 10022
Glen W. Albanese c/o Needham & Company, Inc. Managing Director, Chief Financial Officer
445 Park Avenue
New York, New York 10022
EXHIBIT 1
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(f) promulgated under the Securities Exchange
Act of 1934, as amended, the undersigned hereby agree to the joint filing with
all other Reporting Persons (as such term is defined in the Schedule 13D
referred to below) on behalf of each of them of a statement on Schedule 13D
(including amendments thereto) with respect to the common shares of beneficial
interest, par value $.001 per share, of Southwall Technologies Inc., a Delaware
corporation, and that this Agreement may be included as an Exhibit to such joint
filing. This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the undersigned hereby execute this Agreement as of the
23rd day of April, 2004.
NEEDHAM & COMPANY, INC.
By:/s/ Glen W. Albanese
---------------------------------------
Name: Glen W. Albanese
Title: Chief Financial Officer
/s/ George A. Needham
------------------------------------------
George A. Needham
NEEDHAM EMERGING GROWTH PARTNERS, L.P.
By: Needham Management Partners, L.P.,
its general partner
By:/s/ Glen W. Albanese
---------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CONTRARIAN FUND, L.P.
By: Needham Management Partners, L.P.,
its general partner
By:/s/ Glen W. Albanese
--------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM EMERGING GROWTH PARTNERS (CAYMANS), L.P.
By: Needham Management Partners, L.P.,
its general partner
By:/s/ Glen W. Albanese
-------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM MANAGEMENT PARTNERS, L.P.
By:/s/ Glen W. Albanese
-------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL PARTNERS II, L.P.
By: Needham Capital Management L.L.C.,
its general partner
By:/s/ Glen W. Albanese
-------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL PARTNERS II (BERMUDA), L.P.
By: Needham Capital Management (Bermuda) L.L.C.,
its general partner
By: /s/ Glen W. Albanese
-----------------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL PARTNERS III, L.P.
By: Needham Capital Management L.L.C.,
its general partner
By:/s/ Glen W. Albanese
------------------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL PARTNERS IIIA, L.P.
By: Needham Capital Management L.L.C.,
its general partner
By:/s/ Glen W. Albanese
------------------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL PARTNERS III (BERMUDA), L.P.
By: Needham Capital Management (Bermuda) L.L.C.,
its general partner
By:/s/ Glen W. Albanese
------------------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL MANAGEMENT, L.L.C.
By:/s/ Glen W. Albanese
-------------------------------------
Name: Glen W. Albanese
Title: General Partner
NEEDHAM CAPITAL MANAGEMENT (BERMUDA), L.L.C.
By:/s/ Glen W. Albanese
--------------------------------------
Name: Glen W. Albanese
Title: General Partner