-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GSxg5ekpWSYxP0kUY6jPQ2rVvX0MpZOlbxTLtV7ULfxA647CGLDLP6vhWoPShQgd PlmqJiEmv2gFq2FRcdlhOg== 0000950123-08-001155.txt : 20080205 0000950123-08-001155.hdr.sgml : 20080205 20080205154147 ACCESSION NUMBER: 0000950123-08-001155 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20080205 DATE AS OF CHANGE: 20080205 GROUP MEMBERS: EMPIRE CAPITAL MANAGEMENT, L.L.C. GROUP MEMBERS: EMPIRE GP, L.L.C. GROUP MEMBERS: PETER J. RICHARDS GROUP MEMBERS: SCOTT A. FINE SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: TUMBLEWEED COMMUNICATIONS CORP CENTRAL INDEX KEY: 0001022509 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 943183329 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-56683 FILM NUMBER: 08576185 BUSINESS ADDRESS: STREET 1: 700 SAGINAW DR CITY: REDWOOD CITY STATE: CA ZIP: 94063 BUSINESS PHONE: 6502162000 MAIL ADDRESS: STREET 1: 700 SAGINAW DR CITY: REDWOOD CITY STATE: CA ZIP: 94063 FORMER COMPANY: FORMER CONFORMED NAME: TUMBLEWEED SOFTWARE CORP DATE OF NAME CHANGE: 19990517 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: EMPIRE CAPITAL PARTNERS LP CENTRAL INDEX KEY: 0001170998 IRS NUMBER: 133888076 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: C/O EMPIRE G P LLC STREET 2: 1GORHAM ISLAND CITY: WESTPORT STATE: CT ZIP: 06880 BUSINESS PHONE: 2034541019 MAIL ADDRESS: STREET 1: C/O EMPIRE GP LLC STREET 2: 1GORHAM ISLAND CITY: WESTPORT STATE: CT ZIP: 06880 SC 13D/A 1 y48089a1sc13dza.htm AMENDMENT #1 TO SCHEDULE 13D AMENDMENT #1 TO SCHEDULE 13D
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)
TUMBLEWEED COMMUNICATIONS CORP.
(Name of Issuer)
Common Stock, par value $0.001 per share
(Title of Class of Securities)
899690101
(CUSIP Number)
J. Markham Penrod, IACCPSM
Chief Compliance Officer
Empire Capital Management, LLC
One Gorham Island, Suite 201
Westport, CT 06880 USA
(203) 454-1019
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
February 4, 2008
(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), 13d-1(f) or 13d-1(g), check the following box þ.
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 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
(Continued on the following pages)


 

                     
CUSIP No.
 
899690101 
 

 

           
1   NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

Empire Capital Partners, L.P.
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS*
   
  WC
     
5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  Delaware
       
  7   SOLE VOTING POWER
     
NUMBER OF   -0-
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   2,884,316
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   -0-
       
WITH 10   SHARED DISPOSITIVE POWER
     
    2,884,316
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  2,884,316
     
12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  5.6%
     
14   TYPE OF REPORTING PERSON*
   
  PN

2


 

                     
CUSIP No.
 
899690101 
 

 

           
1   NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

Empire GP, L.L.C.
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS*
   
  WC
     
5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  Delaware
       
  7   SOLE VOTING POWER
     
NUMBER OF   -0-
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   2,884,316
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   -0-
       
WITH 10   SHARED DISPOSITIVE POWER
     
    2,884,316
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  2,884,316
     
12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  5.6%
     
14   TYPE OF REPORTING PERSON*
   
  OO

3


 

                     
CUSIP No.
 
899690101 
 

 

           
1   NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

Empire Capital Management, L.L.C.
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS*
   
  WC
     
5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  Delaware
       
  7   SOLE VOTING POWER
     
NUMBER OF   -0-
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   3,729,578
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   -0-
       
WITH 10   SHARED DISPOSITIVE POWER
     
    3,729,578
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  3,729,578
     
12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  7.3%
     
14   TYPE OF REPORTING PERSON*
   
  OO

4


 

                     
CUSIP No.
 
899690101  
 

 

           
1   NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

Scott A. Fine
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS*
   
  PF
     
5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States
       
  7   SOLE VOTING POWER
     
NUMBER OF   -0-
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   6,613,894
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   -0-
       
WITH 10   SHARED DISPOSITIVE POWER
     
    6,613,894
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  6,613,894
     
12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  12.9%
     
14   TYPE OF REPORTING PERSON*
   
  IN

5


 

                     
CUSIP No.
 
899690101  
 

 

           
1   NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

Peter J. Richards
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS*
   
  PF
     
5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States
       
  7   SOLE VOTING POWER
     
NUMBER OF   -0-
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   6,613,894
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   -0-
       
WITH 10   SHARED DISPOSITIVE POWER
     
    6,613,894
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  6,613,894
     
12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  12.9%
     
14   TYPE OF REPORTING PERSON*
   
  IN

6


 

Item 1. Security and Issuer
          The name of the issuer is TUMBLEWEED COMMUNICATIONS CORP. (the “Company”). The Company’s principal executive offices are located at 700 Saginaw Drive, Redwood City, CA 94063. This Schedule 13D relates to the Company’s common stock, par value $0.001 (the “Common Stock”).
Item 2. Identity and Background
Empire Capital Partners, L.P.
  (a)   Empire Capital Partners, L.P.
 
  (b)   1 Gorham Island, Suite 201, Westport, CT 06880.
 
  (c)   Empire Capital Partners, L.P. (“Empire Capital”) is a Delaware limited partnership which operates as a private investment partnership. Empire Capital is filing with respect to the Shares of Common Stock directly owned by it.
 
  (d)   Empire Capital Partners, L.P., during the last five years, has not been convicted in a criminal proceeding, excluding traffic violations or similar misdemeanors.
 
  (e)   Empire Capital Partners, L.P., during the last five years, has not been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction which resulted in Empire Capital Partners, L.P. being at any time 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.
Empire GP, L.L.C.
  (a)   Empire GP, L.L.C.

7


 

  (b)   1 Gorham Island, Suite 201, Westport, CT 06880.
 
  (c)   Empire GP, L.L.C., (“Empire GP”) is a limited liability company organized under the laws of the State of Delaware and serves as the general partner of the Empire Capital and in such capacity has responsibility for the management of the Empire Capital. Empire GP is filing with respect to shares of Common Stock directly owned by Empire Capital.
 
  (d)   Empire GP, L.L.C., during the last five years, has not been convicted in a criminal proceeding, excluding traffic violations or similar misdemeanors.
 
  (e)   Empire GP, L.L.C., during the last five years, has not been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction which resulted in Empire GP, L.L.C. being at any time 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.
Empire Capital Management, L.L.C.
  (a)   Empire Capital Management, L.L.C.
 
  (b)   1 Gorham Island, Suite 201, Westport, CT 06880.
 
  (c)   Empire Capital Management, L.L.C., a Delaware limited liability company (“Empire Management”), provides investment management and administrative services to the Empire Capital, Empire Capital Partners, LTD (the “Empire Overseas Fund”), Charter Oak Partners, L.P. (“Charter Oak”), Charter Oak Partners II, L.P. (“Charter Oak II”) and Charter Oak Master Fund, LP. (“Charter Oak Master” and together, the “Charter Oak Funds”). Empire Management is filing with respect to the Shares of Common Stock directly owned by the Empire Overseas Fund and the Charter Oak Funds.
 
  (d)   Empire Capital Management, L.L.C., during the last five years, has not been convicted in a criminal proceeding, excluding traffic violations or similar misdemeanors.
 
  (e)   Empire Capital Management, L.L.C., during the last five years, has not been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction which resulted in Empire Capital Management, L.L.C. being at any time 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.
Mr. Scott A. Fine
  (a)   Scott A. Fine
 
  (b)   1 Gorham Island, Suite 201, Westport, CT 06880.
 
  (c)   Mr. Fine, together with Mr. Richards, as Members, direct the operations of Empire GP and Empire Management. Mr. Fine is primarily engaged in the business of securities investing. He conducts his investment activities from the address listed in (b) above. Mr. Fine is filing with respect to the shares of Common Stock directly owned by Empire Capital, the Empire Overseas Fund and the Charter Oak Funds. Neither Mr. Fine nor Mr. Richards directly own any shares of Common Stock.
 
  (d)   Mr. Fine, during the last five years, has not been convicted in a criminal proceeding, excluding traffic violations or similar misdemeanors.

8


 

  (e)   Mr. Fine, during the last five years, has not been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction which resulted in Mr. Fine being at any time 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.
 
  (f)   United States citizen.
Mr. Peter J. Richards
  (a)   Peter J. Richards
 
  (b)   1 Gorham Island, Suite 201, Westport, CT 06880.
 
  (c)   Mr. Richards, together with Mr. Fine, as Members, direct the operations of Empire GP and Empire Management. Mr. Richards is primarily engaged in the business of securities investing. He conducts his investment activities from the address listed in (b) above. Mr. Richards is filing with respect to the shares of Common Stock directly owned by Empire Capital, the Empire Overseas Fund and the Charter Oak Funds. Neither Mr. Fine nor Mr. Richards directly own any shares of Common Stock.
 
  (d)   Mr. Richards, during the last five years, has not been convicted in a criminal proceeding, excluding traffic violations or similar misdemeanors.
 
  (e)   Mr. Richards, during the last five years, has not been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction which resulted in Mr. Richards being at any time 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.
 
  (f)   United States citizen.
          The foregoing persons are hereinafter sometimes collectively referred to as the “Reporting Persons.” Any disclosures herein with respect to persons other than the Reporting Persons are made on information and belief after making inquiry to the appropriate party.
Item 3. Source and Amount of Funds or Other Considerations.
     The aggregate purchase price of the 6,613,894 Shares purchased by Empire Capital, the Empire Overseas Fund, and the Charter Oak Funds, collectively, was $17,094,057 (including commissions). The source of funding for the purchase of these Shares was the general working capital of the respective purchasers.
          The Shares are held by the Reporting Persons in margin accounts. Such margin accounts may from time to time have debit balances. Since other securities are held in such margin accounts, it is not possible to determine the amounts, if any, of margin used with respect to the purchase of the Shares.
Item 4. Purpose of Transaction.
          The Reporting Persons acquired the shares of Common Stock for the purpose of obtaining a significant equity position in the Company and considered the Common Stock to be an attractive investment at the price levels at which it acquired the shares of Common Stock.
          The Reporting Persons’ primary interest is to maximize the value of its investment. To this end, the Reporting Persons intend continually to review the Company’s business affairs and financial position and future prospects, as well as conditions in the securities markets and general economic and industrial conditions. Based on such evaluation and review and other factors (including, without limitation, the attitude of the Board of Directors

9


 

and management of the Company), the Reporting Persons will continue to consider various alternative courses of action and will in the future take such actions with respect to its investment in the Company as it deems appropriate in light of the circumstances existing from time to time. Such actions may include seeking representation on the Board of Directors of the Company, making recommendations to members of management concerning various business strategies, other strategic partnerships, dividend policies and other matters, seeking to acquire control of the Company through a merger, proxy solicitation, tender offer, exchange offer or otherwise, or such other actions as the Reporting Persons may deem appropriate. Such actions may involve the purchase of additional Common Stock or, alternatively, may involve the sale of all or a portion of the Common Stock held by the Reporting Persons in the open market or in privately negotiated transactions to one or more purchasers.
On January 30, 2008, Hamilton-Madison Group, an advisor to the Reporting Persons, delivered a presentation to the full Board of Directors of the Company expressing its belief that the market price of the Company’s shares fails to reflect the value embedded in the Company’s business and urged the Board of Directors to enact a business plan for 2008 that will:
  (a)   complete the transition to a channel sales strategy by the end of the second quarter of fiscal year 2008;
 
  (b)   immediately reduce operating expenses in all areas to generate operating profits and cash; and
 
  (c)   hire an investment banking firm to assist the Board in exploring all strategic alternatives to maximize stockholder value.
Hamilton-Madison Group also expressed concerns with the Company’s recent poor performance and execution, lack of clarity in expressing its operating plan, particularly the operating losses in converting to a channel sales strategy, and concerns that the Company lacks scale, resources and the distribution channels necessary to compete effectively as a standalone company in the enterprise software market. A summary of the presentation is attached as Exhibit 3 to this amended Schedule 13D and is incorporated herein by reference.
          Empire Capital has the power to dispose of and the power to vote the shares of Common Stock beneficially owned by it, which power may be exercised by its general partner, Empire GP. Empire GP does not directly own any shares of Common Stock. By reason of the provisions of Rule 13d-3 of the Securities Exchange Act of 1934 (the “Act”), Empire GP may be deemed to own beneficially the shares owned by Empire Capital.
          The Empire Overseas Fund and the Charter Oak Funds have the power to dispose of and the power to vote the shares of Common Stock beneficially owned by them, which power may be exercised by their investment manager, Empire Management. Empire Management does not directly own any shares of Common Stock. By reason of the provisions of Rule 13d-3 of the Act, Empire Management may be deemed to own beneficially the shares owned by the Empire Overseas Fund and the Charter Oak Funds.
          Messrs. Fine and Richards, as Members, direct the operations of Empire GP and Empire Management. Neither Mr. Fine nor Mr. Richards directly own any shares of Common Stock. By reason of the provisions of Rule 13d-3 of the Act, each may be deemed to beneficially own the shares beneficially owned by Empire Capital, the Empire Overseas Fund and the Charter Oak Funds. Each of Mr. Fine and Mr. Richards disclaim beneficial ownership of the shares of Common Stock reflected in this filing, except to the extent of his respective pecuniary interest in such securities pursuant to Section 13 of the Act.
          Except as set forth above, the Reporting Persons do not have any plans or proposals which relate to or would result in:
(a)   The acquisition by any person of additional securities of the issuer, or the disposition of securities of the issuer;
 
(b)   An extraordinary corporation transaction, such as a merger, reorganization or liquidation, involving the issuer or any of its subsidiaries;
 
(c)   A sale or transfer of a material amount of assets of the issuer or of any of its subsidiaries;
 
(d)   Any change in the present board of directors or management of the issuer, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board;

10


 

(e)   Any material change in the present capitalization or dividend policy of the issuer;
 
(f)   Any other material change in the issuer’s business or corporate structure;
 
(g)   Changes in the issuer’s charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the issuer by any person;
 
(h)   Causing a class of securities of the issuer to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association;
 
(i)   Causing a class of equity securities of the issuer becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Act; or
 
(j)   Any action similar to any of those enumerated above.
Item 5. Interest in Securities of Issuer.
          According to its Form 10-Q filed with the Securities and Exchange Commission on November 9, 2007, as of October 31, 2007, the Company had 51,123,963 shares of its Common Stock outstanding. The Reporting Persons have the following interests in the Common Stock:
Empire Capital Partner, L.P.
(a)   See page 3, nos. 11 and 13.
 
(b)   See pages 2 — 3, nos. 7-10.
 
(c)   See attached Exhibit 1 for all transactions effected in the Shares that have taken place in the past sixty days.
 
(d)   None.
 
(e)   Not Applicable.
Empire GP, L.L.C.
(a)   See page 4, nos. 11 and 13.
 
(b)   See page 4, nos. 7-10.
 
(c)   See attached Exhibit 1 for all transactions effected in the Shares that have taken place in the past sixty days.
 
(d)   None.
 
(e)   Not Applicable.
Empire Capital Management, L.L.C.
(a)   See page 6, nos. 11 and 13.
 
(b)   See page 5, nos. 7-10.
 
(c)   See attached Exhibit 1 for all transactions effected in the Shares that have taken place in the past sixty days.
 
(d)   None.
 
(e)   Not Applicable.
Mr. Scott A. Fine

11


 

(a)   See page 7, nos. 11 and 13.
 
(b)   See page 7, nos. 7-10.
 
(c)   See attached Exhibit 1 for all transactions effected in the Shares that have taken place in the past sixty days.
 
(d)   None.
 
(e)   Not Applicable.
Mr. Peter J. Richards
(a)   See pages 8-9, nos. 11 and 13.
 
(b)   See page 8, nos. 7-10.
 
(c)   See attached Exhibit 1 for all transactions effected in the Shares that have taken place in the past sixty days.
 
(d)   None.
 
(e)   Not Applicable.
Item 6. Contracts, Arrangements, Understandings or Relationship With Respect to Securities of the Issuer.
     Other than as described herein, there are no contracts, arrangements, understandings or relationships among the Reporting Persons, or between the Reporting Persons and any other person, with respect to the securities of the Company.
Item 7. Material to be filed as Exhibits.
1.   Transactions of the Reporting Persons within the last 60 days.
 
2.   Joint Filing Agreement
 
3.   Presentation outline from the January 30, 2008 Empire Shareholder Presentation to the Issuer’s Board of Directors
After reasonable inquiry and to the best of our knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct.
DATED: February 5, 2008
                 
 
      By:   /s/ Scott A. Fine    
 
               
 
               
        Scott A. Fine, individually, and a member of Empire GP, L.L.C.    
 
          and Empire Capital Management, L.L.C.    
 
               
 
      By:   /s/ Peter J. Richards    
 
               
 
               
        Peter J. Richards, individually, and a member of Empire GP, L.L.C.    
 
          and Empire Capital Management, L.L.C.    

12

EX-99.1 2 y48089a1exv99w1.htm EX-99.1: TRANSACTIONS OF REPORTING PERSONS WITHIN THE LAST 60 DAYS EX-99.1
 

Exhibit 1
Transactions by the Reporting Persons within the last sixty days:
                                 
Name   Trade Date   Quantity   Price   Total Amount
EMPIRE CAPITAL PARTNERS LTD
    12/18/2007       7445       1.6802     $ 12,546.32  
EMPIRE CAPITAL PARTNERS LTD
    12/19/2007       4852       1.63     $ 7,981.54  
EMPIRE CAPITAL PARTNERS LTD
    12/26/2007       9789       1.5947     $ 15,659.47  
EMPIRE CAPITAL PARTNERS LTD
    12/31/2007       28266       1.5165     $ 43,006.72  
EMPIRE CAPITAL PARTNERS LTD
    1/24/2008       3809       1.3     $ 4,970.75  
EMPIRE CAPITAL PARTNERS LTD
    1/25/2008       9470       1.3169     $ 12,518.39  
EMPIRE CAPITAL PARTNERS LTD
    1/28/2008       1338       1.4141     $ 1,898.76  
EMPIRE CAPITAL PARTNERS LTD
    1/31/2008       1933       1.59     $ 3,102.47  
 
            66902             $ 101,684.42  
 
                               
CHARTER OAK MASTER FUND LP
    12/18/2007       52       1.6802     $ 92.63  
CHARTER OAK MASTER FUND LP
    12/19/2007       34       1.63     $ 60.93  
CHARTER OAK MASTER FUND LP
    12/26/2007       69       1.5947     $ 115.38  
CHARTER OAK MASTER FUND LP
    12/31/2007       198       1.5165     $ 301.26  
CHARTER OAK MASTER FUND LP
    1/24/2008       28       1.3     $ 36.54  
CHARTER OAK MASTER FUND LP
    1/25/2008       71       1.3169     $ 93.86  
CHARTER OAK MASTER FUND LP
    1/28/2008       10       1.4141     $ 14.19  
CHARTER OAK MASTER FUND LP
    1/31/2008       14       1.59     $ 22.47  
 
            476             $ 737.26  
 
                               
EMPIRE CAPITAL PARTNERS, L.P.
    12/18/2007       6859       1.6802     $ 11,563.79  
EMPIRE CAPITAL PARTNERS, L.P.
    12/19/2007       4469       1.63     $ 7,356.51  
EMPIRE CAPITAL PARTNERS, L.P.
    12/26/2007       9019       1.5947     $ 14,432.70  
EMPIRE CAPITAL PARTNERS, L.P.
    12/31/2007       26040       1.5165     $ 39,619.86  
EMPIRE CAPITAL PARTNERS, L.P.
    1/24/2008       4072       1.3     $ 5,313.96  
EMPIRE CAPITAL PARTNERS, L.P.
    1/25/2008       10127       1.3169     $ 13,386.89  
EMPIRE CAPITAL PARTNERS, L.P.
    1/28/2008       1431       1.4141     $ 2,030.74  
EMPIRE CAPITAL PARTNERS, L.P.
    1/31/2008       2069       1.59     $ 3,320.75  
 
            64086             $ 97,025.20  
 
                               
CHARTER OAK PARTNERS 2
    12/18/2007       205       1.6802     $ 350.47  
CHARTER OAK PARTNERS 2
    12/19/2007       134       1.63     $ 225.43  
CHARTER OAK PARTNERS 2
    12/26/2007       270       1.5947     $ 436.92  
CHARTER OAK PARTNERS 2
    12/31/2007       780       1.5165     $ 1,186.77  
CHARTER OAK PARTNERS 2
    1/24/2008       82       1.3     $ 107.01  
CHARTER OAK PARTNERS 2
    1/25/2008       203       1.3169     $ 268.35  
CHARTER OAK PARTNERS 2
    1/28/2008       29       1.4141     $ 41.16  
CHARTER OAK PARTNERS 2
    1/31/2008       41       1.59     $ 65.81  
 
            1744             $ 2,681.92  
 
                               
CHARTER OAK PARTNERS
    12/18/2007       1242       1.6802     $ 2,098.02  
CHARTER OAK PARTNERS
    12/19/2007       810       1.63     $ 1,337.45  
CHARTER OAK PARTNERS
    12/26/2007       1633       1.5947     $ 2,617.32  
CHARTER OAK PARTNERS
    12/31/2007       4716       1.5165     $ 7,175.39  
CHARTER OAK PARTNERS
    1/24/2008       614       1.3     $ 801.27  
CHARTER OAK PARTNERS
    1/25/2008       1526       1.3169     $ 2,017.22  
CHARTER OAK PARTNERS
    1/28/2008       216       1.4141     $ 306.53  
CHARTER OAK PARTNERS
    1/31/2008       311       1.59     $ 499.16  
 
            11068             $ 16,852.36  
 
                               
 
  TOTAL     144,276             $ 218,981.16  

13

EX-99.2 3 y48089a1exv99w2.htm EX-99.2: JOINT FILING AGREEMENT EX-99.2
 

Exhibit 2
JOINT FILING AGREEMENT
     In accordance with Rule 13d-1(k)(1)(iii) under the Securities Exchange Act of 1934, as amended, the Reporting Persons agree to the joint filing on behalf of each of them of a Schedule 13D (including amendments thereto) with respect to the Common Stock of Tumbleweed Communications Corp. This Joint Filing Agreement shall be filed as an Exhibit to such Statement.
DATED: December 6, 2007
                 
 
      By:   /s/ Scott A. Fine    
 
         
 
   
 
               
        Scott A. Fine, individually, and a member of Empire GP, L.L.C.    
 
          and Empire Capital Management, L.L.C.    
 
               
 
      By:   /s/ Peter J. Richards    
 
               
 
               
        Peter J. Richards, individually, and a member of Empire GP, L.L.C.    
 
          and Empire Capital Management, L.L.C.    

14

EX-99.3 4 y48089a1exv99w3.htm EX-99.3: OUTLINE FROM 1/30/08 EMPIRE SHAREHOLDER PRESENTATION EX-99.3
 

Exhibit 3
Shareholder Presentation Jan 2008
Current Situation
      Empire has been in the stock for a long time
 
      Continue to believe stock is under valued
 
      Management team promoted as the team to turn things around
  Ø   Initial quarters did not produce significant results
 
  Ø   In recent quarters the team seems behind the market and the business
      Channel checks indicate
  Ø   Inconsistent channel communications
 
  Ø   Leadership turnover and strategy changes causing poor performance
Product Mix
      Validation Authority – harvest mode
 
      MailGate – commodity margins
  Ø   Corvigo acquisition under performed value expectation
 
  Ø   CISCO (IronPort) dominates the channel
      Secure Content Delivery Platform – future value
  Ø   Secure Messenger
 
  Ø   Secure Transport
 
  Ø   Avoids perception of channel conflict/competition with CISCO
 
  Ø   New product in the category, not likely resource rich enough to promote it
Operational Performance
      Gross margin compression to 77%
 
      Operating expenses exceeded 85% of total revenue
 
      Sales and marketing expense ratio too high for too long and unproductive
  Ø   Current explanation is priming the channel
 
  Ø   Past experience suffered turnover in leadership position
      A 10% across the board expense reduction is not sufficient
 
      Operating expenses have been a systemic challenge for more than 7 quarters
Situational Awareness
Industry Consolidation
  Ø   Competition and margin compression is increasing
 
  Ø   Smaller independent software vendors at a competitive disadvantage
      Position in the industry
  Ø   In a consolidating segment, the Issuer is a seller
 
  Ø   If you are small, you must be strong; which means profitable operations and positive cash flow
      Company trades at a discount to intrinsic value due to
  Ø   Unprofitable operations
 
  Ø   Downside surprises to revenue, net income and cash
 
  Ø   Competitive weakness in the channel

15


 

  Ø   Flagging legacy product sales
 
  Ø   Uncertain value in the promise of new secure content delivery product
Plan of Action
      Immediate expense reduction
  Ø   Commit to operating income profitability in 1Q08
 
  Ø   Commit to channel strategy, eliminate duplicative sales and marketing expense
 
  Ø   Eliminate all non-personnel related discretionary expenses
      Retain a banker to discretely solicit interest in the company
  Ø   Return to profitable operations drives value in strategic discussions, it does not validate the business plan or change industry position
 
  Ø   A strategic acquirer could apply greater resources and market presence to secure content delivery technology
 
  Ø   Eliminate company specific execution risk and improve certainty of realizing shareholder value creation
Open Questions
What are the goals for the business, how do you measure progress?
With two years into what was billed as a turnaround team, when can we expect to see leverage in the business?
What performance indicators signal continued shareholder patience?
Do you think the stock price performance over the past two years fairly reflects management’s performance?

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