Form: S-1/A

General form for registration of securities under the Securities Act of 1933

October 3, 1997

S-1/A: General form for registration of securities under the Securities Act of 1933

Published on October 3, 1997




AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON OCTOBER 3, 1997


REGISTRATION NO. 333-29073
================================================================================

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------


AMENDMENT NO. 3

TO

FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
------------------------

SCM MICROSYSTEMS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)



DELAWARE 3577 77-0444317
(STATE OR OTHER JURISDICTION OF (PRIMARY STANDARD INDUSTRIAL (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) CLASSIFICATION CODE NUMBER) IDENTIFICATION NUMBER)


SCM MICROSYSTEMS, INC.
131 ALBRIGHT WAY
LOS GATOS, CA 95032
(408) 370-4888
(NAME, ADDRESS, INCLUDING ZIP CODE AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
------------------------

STEVEN HUMPHREYS
PRESIDENT AND CHIEF EXECUTIVE OFFICER
SCM MICROSYSTEMS, INC.
131 ALBRIGHT WAY
LOS GATOS, CA 95032
(408) 370-4888
(NAME, ADDRESS, INCLUDING ZIP CODE AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
AGENT FOR SERVICE)
------------------------

COPIES TO:



JEFFREY D. SAPER, ESQ. MICHAEL S. IMMORDINO, ESQ.
KENNETH M. SIEGEL, ESQ. KARL A. ROESSNER, ESQ.
N. ANTHONY JEFFRIES, ESQ. DAVID M. DETWEILER, ESQ.
JAN-MARC VAN DER SCHEE, ESQ. JOHN CAFIERO, ESQ.
WILSON SONSINI GOODRICH & ROSATI ROGERS & WELLS
PROFESSIONAL CORPORATION CITY TOWER
650 PAGE MILL ROAD 40 BASINGHALL STREET
PALO ALTO, CA 94304 LONDON, EC2V 5DE
(415) 493-9300 ENGLAND
44-171-628-0101


------------------------

APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC:
As soon as practicable after the effective date of this Registration Statement.
------------------------

If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, check the following box: [ ]

If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [ ]
- ---------

If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [ ]
- ---------

If this Form is a post-effective amendment filed pursuant to Rule 462(d)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [ ]
- ---------

If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [ ]

THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF
THE SECURITIES ACT OF 1933 OR UNTIL THIS REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(a),
MAY DETERMINE.
================================================================================

PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION

The following table sets forth the costs and expenses, other than
underwriting discounts and commissions, payable by the Registrant in connection
with the sale of Common Stock being registered. All amounts are estimates except
the SEC registration fee, the NASD filing fee and the Nasdaq National Market
listing fee.



AMOUNT
TO BE PAID
----------

SEC registration fee............................................. $ 15,268
NASD filing fee.................................................. 5,539
Nasdaq National Market listing fee............................... 25,000
Printing and engraving expenses.................................. 100,000
Legal fees and expenses.......................................... 350,000
Accounting fees and expenses..................................... 225,000
Directors' and officers' liability insurance..................... 200,000
Blue Sky qualification fees and expenses......................... 3,000
Transfer agent and registrar fees................................ 5,000
Miscellaneous.................................................... 241,193
----------
Total.................................................. $1,170,000
==========


ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS

As permitted by Section 145 of the Delaware General Corporation Law, the
Registrant's Amended and Restated Certificate of Incorporation includes a
provision that eliminates the personal liability of its directors for monetary
damages for breach or alleged breach of their duty of care. In addition, as
permitted by Section 145 of the Delaware General Corporation Law, the Bylaws, as
amended, of the Registrant provide that: (i) the Registrant is required to
indemnify its directors and officers and persons serving in such capacities in
other business enterprises (including, for example, subsidiaries of the
Registrant) at the Registrant's request, to the fullest extent permitted by
Delaware law, including in those circumstances in which indemnification would
otherwise be discretionary; (ii) the Registrant may, in its discretion,
indemnify employees and agents in those circumstances where indemnification is
not required by law; (iii) the Registrant is required to advance expenses, as
incurred, to its directors and officers in connection with defending a
proceeding (except that it is not required to advance expenses to a person
against whom the Registrant brings a claim for breach of the duty of loyalty,
failure to act in good faith, intentional misconduct, knowing violation of law
or deriving an improper personal benefit); (iv) the rights conferred in the
Bylaws, as amended, are not exclusive, and the Registrant is authorized to enter
into indemnification agreements with its directors, officers and employees; and
(v) the Registrant may not retroactively amend the Bylaw provisions in a way
that is adverse to such directors, officers and employees.

The Registrant's policy is to enter into indemnification agreements with
each of its directors and officers that provide the maximum indemnity allowed to
directors and officers by Section 145 of the Delaware General Corporation Law
and the Bylaws, as amended, as well as certain additional procedural
protections.

The indemnification provisions in the Bylaws, as amended, and the
indemnification agreements entered into between the Registrant and its directors
and officers may be sufficiently broad to permit indemnification of the
Registrant's directors and officers for liabilities arising under the Securities
Act.

II-1

Reference is made to the following documents filed as exhibits to this
Registration Statement regarding relevant indemnification provisions described
above and elsewhere herein:



EXHIBIT
DOCUMENT NUMBER
-------------------------------------------------------------------- ------

Form of U.S. Underwriting Agreement................................. 1.1
Form of International Underwriting Agreement........................ 1.2
Form of Third Amended and Restated Certificate of Incorporation..... 3.1
Form of Fourth Amended and Restated Certificate of Incorporation to
be effective upon completion of this offering..................... 3.2
Bylaws, as amended.................................................. 3.3
Form of Indemnification Agreement entered into by the Registrant
with each of its directors and executive officers................. 10.1


ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES

The Registrant has recently issued and sold the following securities:

(i) From January 1, 1994 through September 4, 1997 the Registrant issued
and sold 3,944,495 shares of Preferred Stock at purchase prices ranging from
$3.83 to $8.58 for aggregate consideration of approximately $21,290,570;

(ii) From January 1, 1994 through September 4, 1997 the Registrant issued
and sold 586,296 shares of Common Stock to employees and consultants at an
exercise price of $0.10 for aggregate consideration of approximately $59,000;

(iii) From January 1, 1994 through September 4, 1997, the Registrant issued
warrants to purchase up to 784,121 shares of Common Stock at exercise prices
ranging from $5.72 to $14.00 per share in connection with the issuance of a
portion of the Preferred Stock described in (i) above, certain loan arrangements
and the settlement with Gemplus; and

(iv) Concurrently with these offerings, the Registrant will issue and sell
200,000 shares of Common Stock at $9.00 per share.

The issuances referred to in paragraphs (i), (iii) and (iv) were deemed
exempt from registration under the Securities Act in reliance upon Section 4(2)
thereof. The recipients of securities in each such transaction represented their
intentions to acquire the securities for investment only and not with a view to
or for sale in connection with any distribution thereof and appropriate legends
were affixed to the share certificates issued in such transactions. All
recipients had adequate access, through their relationships with the Registrant,
to information about the Registrant. The issuances of Common Stock described in
paragraph (ii) above were deemed exempt from registration under the Securities
Act in reliance upon Rule 701 promulgated under the Securities Act.

ITEM 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) EXHIBITS




EXHIBIT NO. DESCRIPTION
----------- ----------------------------------------------------------------------------

1.1* Form of U.S. Underwriting Agreement.
1.2* Form of International Underwriting Agreement.
3.1* Third Amended and Restated Certificate of Incorporation of Registrant.
3.2* Form of Fourth Amended and Restated Certificate of Incorporation to be
effective upon completion of this offering.
3.3 Bylaws, as amended, of Registrant.
4.1* Form of Registrant's Common Stock Certificate.
5.1* Opinion of Wilson Sonsini Goodrich & Rosati, Professional Corporation,
regarding legality of the securities being issued.
9.1* Voting Trust Agreement with Nicholas Efthymiou.
9.2* Voting Trust Agreement with Reiner Pohl.
10.1* Form of Director and Officer Indemnification Agreement.
10.2* 1997 Stock Plan.
10.3* 1997 Employee Stock Purchase Plan.



II-2




EXHIBIT NO. DESCRIPTION
----------- ----------------------------------------------------------------------------

10.4* 1997 Director Option Plan.
10.5* 1997 Stock Option Plan for French Employees.
10.6* 1997 Employee Stock Purchase Plan for Non-U.S. Employees.
10.7* Partnership Agreement, dated June 8, 1995, between Registrant and
Technologie-Beteiligungs-GmbH of Deutsche Ausgleichsbank.
10.8* Continuing Guarantee, dated January 15, 1997, between Registrant and
Imperial Bank.
10.9* Line of Credit, dated October 23, 1996, between Registrant and Deutsche
Bank.
10.10* Line of Credit, dated December 3, 1996, between Registrant and BHF Bank.
10.11* Line of Credit, dated November 11, 1996, between Registrant and
Stadtsparkasse Munchen.
10.12* Lease, dated September 29, 1994, between Registrant and Los Gatos Business
Park.
10.13* Sublease Agreement, dated December 17, 1996, between Intermart Systems, Inc.
and Registrant.
10.14* Lease, dated September 30, 1994, between Registrant and Olbrich Franz.
10.15* Amended and Restated Stockholders' Agreement, dated April 11, 1997, between
Registrant and certain investors.
10.16* Form of Employment Agreement between SCM GmbH and Messrs. Schneider and
Meier.
10.17* Employment Agreement, dated May 15, 1995, between Registrant and Jean-Yves
Le Roux.
10.18*+ Commitment Instrument, dated August 7, 1996, among France Telecom, Matra
Communication, Registrant and Matra MHS.
10.19*+ Teaming Agreement, dated October 6, 1995, between Temic/Matra MHS, Matra
Communication and Registrant.
10.20* Form of amendment to the Partnership Agreement, dated June 8, 1995, between
Registrant and Technologie-Beteiligungs-GmbH of Deutsche Ausgleichsbank and
form of warrant.
10.21*+ Development Agreement, dated March 6, 1997, between Intel Corporation and
Registrant.
10.22*+ Technology Development and License Agreement, dated September 27, 1996,
between Registrant and Sun Microsystems, Inc.
10.23* Cooperation Contract, dated March 25, 1996, between Registrant and Stocko
Metallwarenfabriken Henkels and Sohn GmbH & Co.
10.24*+ Development and Supply Agreement, dated October 9, 1996, between BetaDigital
Gesellschaft fur digitale Fernsehdienste mbH and Registrant.
10.25* Framework Contract, dated December 23, 1996, between Siemens Nixdorf
Informationssysteme AG and Registrant.
10.26* Intentionally omitted.
10.27*+ B-1 License and Know-How Contract, dated September 4, 1996, between Deutsche
Telekom AG and Registrant, as amended.
10.28* Technology Option Agreement, dated January 31, 1997, between Wolfgang Neifer
and Registrant.
10.29*+ Patent License Agreement, dated November 15, 1995, between MIPS Dataline
America, Inc. and Registrant.
10.30+ Development and Supply Agreement, dated May 15, 1997, between Telenor Conax
and Registrant.
10.31*+ Manufacturer's Sales Representative Agreement, dated December 8, 1994,
between Registrant and AGM.
10.32*+ License Agreement, dated September 5, 1997, between the Registrant and
Gemplus.
10.33* Warrant Issuance and Common Stock Agreement, dated September 5, 1997,
between the Registrant and Gemplus.
10.34* Common Stock Purchase Warrant dated September 5, 1997, issued to Gemplus.
10.35* Common Stock Purchase Warrant dated September 5, 1997, issued to Gemplus.
10.36* Waiver and Amendment to Amended and Restated Stockholders' Agreement dated
September 5, 1997.
11.1* Statement of computation of earnings per share.
21.1* Subsidiaries of the Registrant.
23.1* Consent of KPMG Peat Marwick LLP, Independent Certified Public Accountants



II-3



EXHIBIT NO. DESCRIPTION
----------- ----------------------------------------------------------------------------

23.2* Consent of Wilson Sonsini Goodrich & Rosati, Professional Corporation
(included in Exhibit 5.1)
24.1* Power of Attorney
27.1* Financial Data Schedule


- ---------------

* Filed previously.


+ Certain information in these exhibits has been omitted and filed separately
with the Securities and Exchange Commission pursuant to a confidential
treatment request under 17 C.F.R. sec.sec. 200.80(b)(4), 200.83 and 230.46.


(b) FINANCIAL STATEMENT SCHEDULES

Schedule II -- Valuation and Qualifying Accounts

Schedules not listed above have been omitted because the information
required to be set forth therein is not applicable or is shown in the financial
statements or notes thereto.

ITEM 17. UNDERTAKINGS

The undersigned Registrant hereby undertakes to provide to the Underwriters
at the closing specified in the Underwriting Agreement, certificates in such
denominations and registered in such names as required by the Underwriters to
permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities
Act, may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the California Corporation Law, the Registrant's
Certificate of Incorporation, as amended, the Registrant's Bylaws, as amended,
the Registrant's indemnification agreements or otherwise, the Registrant has
been advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act, and
is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered hereunder, the Registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act and will be governed by
the final adjudication of such issue.

The undersigned Registrant hereby undertakes that:

(1) For purposes of determining any liability under the Securities Act, the
information omitted from the form of Prospectus filed as part of this
Registration Statement in reliance upon Rule 430A and contained in a
form of Prospectus filed by the Registrant pursuant to Rule 424(b)(1)
or (4) or 497(h) under the Securities Act shall be deemed to be part of
this Registration Statement as of the time it was declared effective.

(2) For the purpose of determining any liability under the Securities Act,
each post-effective amendment that contains a form of Prospectus shall
be deemed to be a new Registration Statement relating to the securities
offered therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.

II-4

SIGNATURES


Pursuant to the requirements of the Securities Act of 1933, the Registrant
has duly caused this Amendment No. 3 to the Company's Registration Statement on
Form S-1 to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Los Gatos, State of California, on this 3rd day of
October 1997.


SCM MICROSYSTEMS, INC.

By: /s/ STEVEN HUMPHREYS
------------------------------------
Steven Humphreys
President and Chief Executive
Officer


Pursuant to the requirements of the Securities Act of 1933, this Amendment
No. 3 to the Company's Registration Statement has been signed by the following
persons in the capacities and on the dates indicated:





SIGNATURE TITLE DATE
- ----------------------------------------------- -------------------------- ----------------

/s/ STEVEN HUMPHREYS President and Chief October 3, 1997
- ----------------------------------------------- Executive Officer
Steven Humphreys (Principal Executive
Officer) and Director

/s/ JOHN NIEDERMAIER Vice President, Finance October 3, 1997
- ----------------------------------------------- and Chief Financial
John Niedermaier Officer (Principal
Financial and Accounting
Officer)

/s/ ROBERT SCHNEIDER* Chairman of the Board October 3, 1997
- -----------------------------------------------
Robert Schneider

/s/ BERND MEIER* Chief Operations Officer October 3, 1997
- ----------------------------------------------- and Director
Bernd Meier

/s/ FRIEDRICH BORNIKOEL* Director October 3, 1997
- -----------------------------------------------
Friedrich Bornikoel

/s/ BRUCE GRAHAM* Director October 3, 1997
- -----------------------------------------------
Bruce Graham
/s/ RANDALL LUNN* Director October 3, 1997
- -----------------------------------------------
Randall Lunn

/s/ POH CHUAN NG* Director October 3, 1997
- -----------------------------------------------
Poh Chuan Ng

/s/ ANDREW VOUGHT* Director October 3, 1997
- -----------------------------------------------
Andrew Vought

*By: /s/ JOHN NIEDERMAIER
- -----------------------------------------------
John Niedermaier
Attorney-in-Fact



II-5

EXHIBIT INDEX




EXHIBIT NO. DESCRIPTION
----------- -----------------------------------------------------------------

1.1* Form of U.S. Underwriting Agreement
1.2* Form of International Underwriting Agreement
3.1* Third Amended and Restated Certificate of Incorporation of
Registrant
3.2* Form of Fourth Amended and Restated Certificate of Incorporation
to be effective upon completion of this offering
3.3 Bylaws, as amended, of Registrant
4.1* Form of Registrant's Common Stock Certificate
5.1* Opinion of Wilson Sonsini Goodrich & Rosati, Professional
Corporation, regarding legality of the securities being issued
9.1* Voting Trust Agreement with Nicholas Efthymiou
9.2* Voting Trust Agreement with Reiner Pohl
10.1* Form of Director and Officer Indemnification Agreement
10.2* 1997 Stock Plan
10.3* 1997 Employee Stock Purchase Plan
10.4* 1997 Director Option Plan
10.5* 1997 Stock Option Plan for French Employees
10.6* 1997 Employee Stock Purchase Plan for Non-U.S. Employees
10.7* Partnership Agreement, dated June 8, 1995, between Registrant and
Technologie-Beteiligungs-GmbH of Deutsche Ausgleichsbank
10.8* Continuing Guarantee, dated January 15, 1997, between Registrant
and Imperial Bank
10.9* Line of Credit, dated October 23, 1996, between Registrant and
Deutsche Bank
10.10* Line of Credit, dated December 3, 1996, between Registrant and
BHF Bank
10.11* Line of Credit, dated November 11, 1996, between Registrant and
Stadtsparkasse Munchen
10.12* Lease, dated September 29, 1994, between Registrant and Los Gatos
Business Park
10.13* Sublease Agreement, dated December 17, 1996, between Intermart
Systems, Inc. and Registrant
10.14* Lease, dated September 30, 1994, between Registrant and Olbrich
Franz
10.15* Amended and Restated Stockholders' Agreement, dated April 11,
1997, between Registrant and certain investors
10.16* Form of Employment Agreement between SCM GmbH and Messrs.
Schneider and Meier
10.17* Employment Agreement, dated May 15, 1995, between Registrant and
Jean-Yves Le Roux
10.18*+ Commitment Instrument, dated August 7, 1996, among France
Telecom, Matra Communication, Registrant and Matra MHS
10.19*+ Teaming Agreement, dated October 6, 1995, between Temic/Matra
MHS, Matra Communication and Registrant
10.20* Form of Amendment to the Partnership Agreement, dated June 8,
1995, between Registrant and Technologie-Beteiligungs-GmbH of
Deutsche Ausgleichsbank and form of Warrant
10.21*+ Development Agreement, dated March 6, 1997, between Intel
Corporation and Registrant
10.22*+ Technology Development and License Agreement, dated September 27,
1996, between Registrant and Sun Microsystems, Inc.






EXHIBIT NO. DESCRIPTION
----------- -----------------------------------------------------------------

10.23* Cooperation Contract, dated March 25, 1996, between Registrant
and Stocko Metallwarenfabriken Henkels and Sohn GmbH & Co.
10.24*+ Development and Supply Agreement, dated October 9, 1996, between
BetaDigital Gesellschaft fur digitale Fernsehdienste mbH and
Registrant
10.25* Framework Contract, dated December 23, 1996, between Siemens
Nixdorf Informationssysteme AG and Registrant
10.26* Intentionally omitted
10.27*+ B-1 License and Know-How Contract, dated September 4, 1996,
between Deutsche Telekom AG and Registrant, as amended
10.28* Technology Option Agreement, dated January 31, 1997, between
Wolfgang Neifer and Registrant
10.29*+ Patent License Agreement, dated November 15, 1995, between MIPS
Dataline America, Inc. and Registrant
10.30+ Development and Supply Agreement, dated May 15, 1997, between
Telenor Conax and Registrant
10.31*+ Manufacturer's Sales Representative Agreement, dated December 8,
1994, between Registrant and AGM
10.32*+ License Agreement, dated September 5, 1997, between the
Registrant and Gemplus
10.33* Warrant Issuance and Common Stock Agreement, dated September 5,
1997, between the Registrant and Gemplus
10.34* Common Stock Purchase Warrant dated September 5, 1997, issued to
Gemplus
10.35* Common Stock Purchase Warrant dated September 5, 1997, issued to
Gemplus
10.36* Waiver and Amendment to Amended and Restated Stockholders'
Agreement dated September 5, 1997
11.1* Statement of computation of earnings per share
21.1* Subsidiaries of the Registrant
23.1* Consent of KPMG Peat Marwick LLP, Independent Certified Public
Accountants
23.2* Consent of Wilson Sonsini Goodrich & Rosati, Professional
Corporation (included in Exhibit 5.1)
24.1* Power of Attorney
27.1* Financial Data Schedule



- ---------------

* Filed previously.


+ Certain information in these exhibits has been omitted and filed separately
with the Securities and Exchange Commission pursuant to a confidential
treatment request under 17 C.F.R. sec.sec. 200.80(b)(4), 200.83 and 230.46.