UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
Cholestech Corporation
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
170393102
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(CUSIP Number)
August 8, 2006
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(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
* 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 the
disclosures provided in a prior cover page.
The information required in 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. 170393102
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1 NAME OF REPORTING PERSON/
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (Entities Only)
Discovery Equity Partners, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [ ]
Not Applicable (b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
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5 SOLE VOTING POWER
None
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NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 750,290
OWNED BY -----------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON None
WITH -----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
750,290
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
750,290
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10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (see
Instructions)
[ ]
Not Applicable
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
5.0 %
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12 TYPE OF REPORTING PERSON (see Instructions)
PN
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CUSIP No. 170393102
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1 NAME OF REPORTING PERSON/
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (Entities Only)
Discovery Group I, LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [ ]
Not Applicable (b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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5 SOLE VOTING POWER
None
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NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 877,695
OWNED BY -----------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON None
WITH -----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
877,695
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
877,695
-------------------------------------------------------------------------------
10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (see
Instructions)
[ ]
Not Applicable
-------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
5.9 %
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12 TYPE OF REPORTING PERSON (see Instructions)
OO
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CUSIP No. 170393102
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1 NAME OF REPORTING PERSON/
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (Entities Only)
Daniel J. Donoghue
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [ ]
Not Applicable (b) [ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
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5 SOLE VOTING POWER
None
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NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 877,695
OWNED BY -----------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON None
WITH -----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
877,695
-------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
877,695
-------------------------------------------------------------------------------
10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (see
Instructions)
[ ]
Not Applicable
-------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
5.9 %
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12 TYPE OF REPORTING PERSON (see Instructions)
IN
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CUSIP No. 170393102
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1 NAME OF REPORTING PERSON/
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (Entities Only)
Michael R. Murphy
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [ ]
Not Applicable (b) [ ]
-------------------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
-------------------------------------------------------------------------------
5 SOLE VOTING POWER
None
-----------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 877,695
OWNED BY -----------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON None
WITH -----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
877,695
-------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
877,695
-------------------------------------------------------------------------------
10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (see
Instructions)
[ ]
Not Applicable
-------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
5.9 %
-------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (see Instructions)
IN
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Item 1. (a) Name of Issuer
Cholestech Corporation
(b) Address of Issuer's Principal Executive Offices
3347 Investment Boulevard, Hayward, California 94545
Item 2. (a) Name of Person Filing
Discovery Equity Partners, L.P. ("Discovery Partners")
Discovery Group I, LLC, the general partner of Discovery Partners
("Discovery Group")
Daniel J. Donoghue, a Managing Member of Discovery Group
Michael R. Murphy, a Managing Member of Discovery Group
(b) Address of Principal Business Office or, if none, Residence
Discovery Partners, Discovery Group, Mr. Donoghue, and Mr. Murphy
are all located at:
Hyatt Center, 24th Floor, 71 South Wacker Drive, Chicago,
Illinois 60606
(c) Citizenship
Discovery Partners is an Illinois limited partnership
Discovery Group is a Delaware limited liability company
Mr. Donoghue and Mr. Murphy are U.S. citizens
(d) Title of Class of Securities
Common Stock
(e) CUSIP Number
170393102
Item 3. If this statement is filed pursuant to Sections 240.13d-1(b), or
240.13d-2(b) or (c), check whether the person filing is a:
Not Applicable
(a) [ ] Broker or dealer registered under section 15 of the Act (15
U.S.C. 78o).
(b) [ ] Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).
(c) [ ] Insurance company as defined in section 3(a)(19) of the Act
(15 U.S.C. 78c).
(d) [ ] Investment company registered under section 8 of the
Investment Company Act of 1940 (15 U.S.C. 80a-8).
(e) [ ] An investment adviser in accordance with Section
240.13d-1(b)(1)(ii)(E);
(f) [ ] An employee benefit plan or endowment fund in accordance with
Section 240.13d-1(b)(1)(ii)(F);
(g) [ ] A parent holding company or control person in accordance with
Section 240.13d-1(b)(1)(ii)(G);
(h) [ ] A savings associations as defined in Section 3(b) of the
Federal Deposit Insurance Act (12 U.S.C. 1813);
(i) [ ] A church plan that is excluded from the definition of an
investment company under section 3(c)(14) of the Investment
Company Act of 1940 (15 U.S.C. 80a-3);
(j) [ ] Group, in accordance with Section 240.13d-1(b)(1)(ii)(J).
Item 4. Ownership
Provide the following information regarding the aggregate number and
percentage of the class of securities of the issuer identified in Item 1.
(a) Amount beneficially owned:
Discovery Partners - 750,290
Discovery Group - 877,695
Mr. Donoghue - 877,695
Mr. Murphy - 877,695
(b) Percent of class:
Discovery Partners - 5.0 %
Discovery Group - 5.9 %
Mr. Donoghue - 5.9 %
Mr. Murphy - 5.9 %
The foregoing percentages are based on 14,988,875 shares of Common
Stock of the Issuer identified in Item 1 outstanding as of July
31, 2006, as reported in the Issuer's Quarterly Report on Form
10-Q for the fiscal quarter ended June 30, 2006.
(c) Number of shares as to which the person has:
(i) Sole power to vote or to direct the vote
None
(ii) Shared power to vote or to direct the vote
Discovery Partners - 750,290
Discovery Group - 877,695
Mr. Donoghue - 877,695
Mr. Murphy - 877,695
(iii) Sole power to dispose or to direct the disposition of
None
(iv) Shared power to dispose or to direct the disposition of
Discovery Partners - 750,290
Discovery Group - 877,695
Mr. Donoghue - 877,695
Mr. Murphy - 877,695
Item 5. Ownership of Five Percent or Less of a Class
If this statement is being filed to report the fact that as of the date hereof
the reporting person has ceased to be the beneficial owner of more than five
percent of the class of securities, check the following.
Not Applicable
Item 6. Ownership of More than Five Percent on Behalf of Another Person
The shares reported herein have been acquired on behalf of discretionary
clients of Discovery Group, including Discovery Partners. Such discretionary
clients are entitled to receive all dividends from, and proceeds from the sale
of, those shares. Except for Discovery Partners, none of those discretionary
clients, to the knowledge of Discovery Partners, Discovery Group, Mr. Donoghue
or Mr. Murphy, has an economic interest in more than 5% of the class.
Item 7. Identification and Classification of the Subsidiary Which Acquired
the Security Being Reported on By the Parent Holding Company or
Control Person
Not Applicable
Item 8. Identification and Classification of Members of the Group
Not Applicable
Item 9. Notice of Dissolution of Group
Not Applicable
Item 10. Certification
By signing below I certify that, to the best of my knowledge and belief, the
securities referred to above were not acquired and are not held for the purpose
of or with the effect of changing or influencing the control of the issuer of
the securities and were not acquired and are not held in connection with or as
a participant in any transaction having that purpose or effect.
Signature
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
August 17, 2006
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Date
DISCOVERY GROUP I, LLC,
for itself and as general partner of
DISCOVERY EQUITY PARTNERS, L.P.
/s/ Michael R. Murphy
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Signature
Michael R. Murphy, Managing Member
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Name/Title
/s/ Daniel J. Donoghue
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Signature
Daniel J. Donoghue
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Name/Title
/s/ Michael R. Murphy
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Signature
Michael R. Murphy
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Name/Title
Exhibit Index
Exhibit 1 Joint Filing Agreement dated as of August 17, 2006, by and
between Discovery Equity Partners, L.P.; Discovery Group I,
LLC; Daniel J. Donoghue; and Michael R. Murphy.
EXHIBIT 1
JOINT FILING AGREEMENT
The undersigned hereby agree to the joint filing of the Amendment No. 1 to
the Schedule 13G to which this Agreement is attached.
Dated: August 17, 2006
DISCOVERY GROUP I, LLC,
for itself and as general partner of
DISCOVERY EQUITY PARTNERS, L.P.
By /s/ Michael R. Murphy
----------------------------------
Michael R. Murphy
Managing Member
/s/ Daniel J. Donoghue
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Daniel J. Donoghue
/s/ Michael R. Murphy
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Michael R. Murphy