-----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, AdgqB6vCT96l40Qzkn6h6jFuSO+zM3coi96r0hdZpJq56tnNHR4rEEOhUqWF3DrX qJLd91q6tDOjh31xEMvK/g== 0001362310-08-004831.txt : 20080822 0001362310-08-004831.hdr.sgml : 20080822 20080822162505 ACCESSION NUMBER: 0001362310-08-004831 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20080822 DATE AS OF CHANGE: 20080822 GROUP MEMBERS: EMPIRE CAPITAL PARTNERS, L.P. 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: 081034843 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 Management, L.L.C. CENTRAL INDEX KEY: 0001321711 IRS NUMBER: 133888075 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 1 GORHAM ISLAND CITY: WESTPORT STATE: CT ZIP: 06880 BUSINESS PHONE: 203-454-1019 MAIL ADDRESS: STREET 1: 1 GORHAM ISLAND CITY: WESTPORT STATE: CT ZIP: 06880 SC 13D/A 1 c74913sc13dza.htm SCHEDULE 13D/A Filed by Bowne Pure Compliance
     
 
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934
(Amendment No. 2 )*

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, IACCP(SM)
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)
August 20, 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 §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. þ

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

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 that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 
 


 

                     
CUSIP No.
 
899690101 
 

 

           
1   NAMES OF REPORTING PERSONS

Empire Capital Partners, L.P.
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  WC
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 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   2,012,117
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   -0-
       
WITH 10   SHARED DISPOSITIVE POWER
     
    2,012,117
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  2,012,117
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  3.8%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  PN

2


 

                     
CUSIP No.
 
899690101 
 

 

           
1   NAMES OF REPORTING PERSONS

Empire GP, L.L.C.
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  WC
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 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   2,012,117
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   -0-
       
WITH 10   SHARED DISPOSITIVE POWER
     
    2,012,117
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  2,012,117
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  3.8%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  OO

3


 

                     
CUSIP No.
 
899690101 
 

 

           
1   NAMES OF REPORTING PERSONS

Empire Capital Management, L.L.C.
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  WC
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 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   2,601,777
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   -0-
       
WITH 10   SHARED DISPOSITIVE POWER
     
    2,601,777
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  2,601,777
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  4.9%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  OO

4


 

                     
CUSIP No.
 
899690101 
 

 

           
1   NAMES OF REPORTING PERSONS

Scott A. Fine
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  PF
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 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   4,613,894
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   -0-
       
WITH 10   SHARED DISPOSITIVE POWER
     
    4,613,894
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  4,613,894
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  8.7%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN

5


 

                     
CUSIP No.
 
899690101  
 

 

           
1   NAMES OF REPORTING PERSONS

Peter J. Richards
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  PF
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 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   4,613,894
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   -0-
       
WITH 10   SHARED DISPOSITIVE POWER
     
    4,613,894
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  4,613,894
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  8.7%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  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.
 
  (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.

 

7


 

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.
 
  (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.

 

8


 

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 4,613,894 Shares purchased by Empire Capital, the Empire Overseas Fund, and the Charter Oak Funds, collectively, was $13,084,183 (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 Issuer 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 Issuer’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 and management of the Issuer), 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 Issuer 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 Issuer 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.

 

9


 

On January 30, 2008, Hamilton-Madison Group, an advisor to Empire, delivered a presentation to the full Board of Directors of the Issuer expressing its belief that the market price of the Issuer’s shares fails to reflect the value embedded in the Issuer’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.
Empire also expressed concerns with the Issuer’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 Issuer lacks scale, resources and the distribution channels necessary to compete effectively as a standalone company in the enterprise software market. The presentation is filed as Exhibit 3 to this Schedule 13D and is incorporated herein by reference.
No Reporting Person has any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) — (j) of Item 4 of Schedule 13D except as set forth herein or such as would occur upon completion of any of the actions discussed above. The Reporting Persons intend to review their investment in the Issuer on a continuing basis and engage in discussions with management and the Board of Directors of the Issuer concerning the business, operations and future plans of the Issuer. Depending on various factors including, without limitation, the Issuer’s financial position and investment strategy, the price levels of the Shares, conditions in the securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Issuer as they deem appropriate including, without limitation, seeking Board representation, making proposals to the Issuer concerning changes to the capitalization, ownership structure or operations of the Issuer, purchasing additional Shares, selling some or all of their Shares, engaging in short selling of or any hedging or similar transaction with respect to the Shares or changing their intention with respect to any and all matters referred to in Item 4.
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.

 

10


 

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;
 
  (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 August 11, 2008, as of July 31, 2008, the Company had 53,163,991 shares of its Common Stock outstanding. The Reporting Persons have the following interests in the Common Stock:

 

11


 

Empire Capital Partners, 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
  (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.

 

12


 

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: August 20, 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.

 

13


 

EXHIBIT INDEX

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

 

14

EX-1 2 c74913exv1.htm EXHIBIT 1 Filed by Bowne Pure Compliance
Exhibit 1
Transactions by the Reporting Persons within the last sixty days:
                                 
Name   Trade Date     Quantity     Price     Total Amount  
EMPIRE CAPITAL PARTNERS, LTD
    8/20/2008       -937340       2.43     $ 2,263,663.34  
 
                               
CHARTER OAK MASTER FUND LP
    8/20/2008       -6600       2.43     $ 15,938.91  
 
                               
EMPIRE CAPITAL PARTNERS, L.P.
    8/20/2008       -872199       2.43     $ 2,106,348.71  
 
                               
CHARTER OAK PARTNERS 2
    8/20/2008       -25960       2.43     $ 62,693.04  
 
                               
CHARTER OAK PARTNERS
    8/20/2008       -157901       2.43     $ 381,328.76  
 
                               
 
  TOTAL     (2,000,000 )           $ 4,829,972.76  

 

 

EX-2 3 c74913exv2.htm EXHIBIT 2 Filed by Bowne Pure Compliance
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: August 22, 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.

 

 

EX-3 4 c74913exv3.htm EXHIBIT 3 Filed by Bowne Pure Compliance
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
    Initial quarters did not produce significant results
 
    In recent quarters the team seems behind the market and the business
Channel checks indicate
    Inconsistent channel communications
 
    Leadership turnover and strategy changes causing poor performance
Product Mix
Validation Authority — harvest mode
MailGate — commodity margins
    Corvigo acquisition under performed value expectation
 
    CISCO (IronPort) dominates the channel
Secure Content Delivery Platform — future value
    Secure Messenger
 
    Secure Transport
 
    Avoids perception of channel conflict/competition with CISCO
 
    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
    Current explanation is priming the channel
 
    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
    Competition and margin compression is increasing
 
    Smaller independent software vendors at a competitive disadvantage
Position in the industry
    In a consolidating segment, the Issuer is a seller
 
    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
    Unprofitable operations
 
    Downside surprises to revenue, net income and cash
 
    Competitive weakness in the channel
 
    Flagging legacy product sales
 
    Uncertain value in the promise of new secure content delivery product

 

 


 

Plan of Action
Immediate expense reduction
    Commit to operating income profitability in 1Q08
 
    Commit to channel strategy, eliminate duplicative sales and marketing expense
 
    Eliminate all non-personnel related discretionary expenses
Retain a banker to discretely solicit interest in the company
    Return to profitable operations drives value in strategic discussions, it does not validate the business plan or change industry position
 
    A strategic acquirer could apply greater resources and market presence to secure content delivery technology
 
    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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