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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G/A
Under the Securities Exchange Act of 1934
(Amendment No. 4)*
eLoyalty Corporation
(Name of Issuer)
Common Stock; $.01 par value
(Title of Class of Securities)
290151307
(CUSIP Number)
December 31, 2006
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[X] Rule 13d-1(b)
[ ] 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).
PERSONS WHO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN THIS FORM ARE
NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL
NUMBER.
CUSIP No. 290151307
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
S Squared Technology, LLC 01-0622776
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2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ]
(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:
628,452(1)
Number of ---------------------------------------------------------------
Shares 6. Shared Voting Power:
Beneficially -0-
Owned by ---------------------------------------------------------------
Each Reporting 7. Sole Dispositive Power:
Person With 628,452
---------------------------------------------------------------
8. Shared Dispositive Power:
-0-
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9. Aggregate Amount Beneficially Owned by Each Reporting Person:
628,452
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10. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
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11. Percent of Class Represented by Amount in Row (11)
6.97%(2)
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12. Type of Reporting Person (See Instructions)
IA
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----------
(1) This number includes 22,475 Series B Preferred Stock of the Issuer
beneficially owned by S Squared Technology, LLC that are convertible to
shares of Common Stock on a one to one basis.
(2) All percentages are based on 8,019,567 shares of Common Stock outstanding
on September 30, 2006 plus 1,001,342 shares issued in the Rights Offering.
2
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
S Squared Capital II Management, LLC 20-1954431
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2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ]
(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:
23,313
Number of ---------------------------------------------------------------
Shares 6. Shared Voting Power:
Beneficially -0-
Owned by ---------------------------------------------------------------
Each Reporting 7. Sole Dispositive Power:
Person With 23,313
---------------------------------------------------------------
8. Shared Dispositive Power:
-0-
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9. Aggregate Amount Beneficially Owned by Each Reporting Person:
23,313
--------------------------------------------------------------------------------
10. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (11)
Less than 1%(3)
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12. Type of Reporting Person (See Instructions)
IA
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----------
(3) All percentages are based on 8,019,567 shares of Common Stock outstanding
on September 30, 2006 plus 1,001,342 shares issued in the Rights Offering.
3
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
S Squared Technology Partners, L.P. 43-1991746
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2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ]
(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:
175,978
Number of ---------------------------------------------------------------
Shares 6. Shared Voting Power:
Beneficially -0-
Owned by ---------------------------------------------------------------
Each Reporting 7. Sole Dispositive Power:
Person With 175,978
---------------------------------------------------------------
8. Shared Dispositive Power:
-0-
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
175,978
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10. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (11)
1.95%(4)
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12. Type of Reporting Person (See Instructions)
IA
--------------------------------------------------------------------------------
----------
(4) All percentages are based on 8,019,567 shares of Common Stock outstanding
on September 30, 2006 plus 1,001,342 shares issued in the Rights Offering.
4
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Seymour L. Goldblatt
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Citizenship or Place of Organization:
United States
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5. Sole Voting Power:
827,743(5)
Number of ---------------------------------------------------------------
Shares 6. Shared Voting Power:
Beneficially -0-
Owned by ---------------------------------------------------------------
Each Reporting 7. Sole Dispositive Power:
Person With 827,743
---------------------------------------------------------------
8. Shared Dispositive Power:
-0-
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
827,743
--------------------------------------------------------------------------------
10. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
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11. Percent of Class Represented by Amount in Row (11)
9.18%(6)
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12. Type of Reporting Person (See Instructions)
IN
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(5) Represents combined holdings of S Squared Technology, LLC, S Squared
Capital II Management, LLC and S Squared Technology Partners, L.P. Seymour
L. Goldblatt disclaims any beneficial ownership interest of the shares held
by any funds for which S Squared Technology, LLC, S Squared Capital II
Management, LLC or S Squared Technology Partners, L.P. acts as an
investment adviser, except for that portion of such shares that relates to
his economic interest in such shares, if any.
(6) All percentages are based on 8,019,567 shares of Common Stock outstanding
on September 30, 2006 plus 1,001,342 shares issued in the Rights Offering.
5
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Kenneth A. Goldblatt
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2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Citizenship or Place of Organization:
United States
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5. Sole Voting Power:
827,743(7)
Number of ---------------------------------------------------------------
Shares 6. Shared Voting Power:
Beneficially -0-
Owned by ---------------------------------------------------------------
Each Reporting 7. Sole Dispositive Power:
Person With 827,743
---------------------------------------------------------------
8. Shared Dispositive Power:
-0-
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
827,743
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10. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (11)
9.18%(8)
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12. Type of Reporting Person (See Instructions)
IN
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----------
(7) Represents combined holdings of S Squared Technology, LLC, S Squared
Capital II Management, LLC and S Squared Technology Partners, L.P. Kenneth
A. Goldblatt disclaims any beneficial ownership interest of the shares held
by any funds for which S Squared Technology, LLC, S Squared Capital II
Management, LLC or S Squared Technology Partners, L.P. acts as an
investment adviser, except for that portion of such shares that relates to
his economic interest in such shares, if any.
(8) All percentages are based on 8,019,567 shares of Common Stock outstanding
on September 30, 2006 plus 1,001,342 shares issued in the Rights Offering.
6
ITEM 1.
(a) Name of Issuer: eLoyalty Corporation
(b) Address of Issuer's Principal Executive Offices: 150 Field Drive,
Suite 250, Lake Forrest, IL 60045
ITEM 2.
(a) Name of Person Filing: This statement is filed on behalf of S Squared
Technology, LLC ("SST"), S Squared Capital II Management, LLC
("SSCIIM"), both Delaware limited liability companies, S Squared
Technology Partners, L.P. ("SSTP"), a Delaware limited partnership,
and Seymour L. Goldblatt ("Seymour") and Kenneth A. Goldblatt
("Kenneth"), both United States citizens. SST, SSCIIM and SSTP are
registered investment advisers. Seymour is the President of each of
SST, SSCIIM and SSTP and owns a majority of the interests in SST.
Kenneth owns a majority of the interests in each of SSCIIM and SSTP.
An agreement among SST, SSCIIM, SSTP, Seymour and Kenneth in writing
to file this statement on behalf of each of them is attached as
Exhibit A hereto. This statement relates to shares held for the
accounts of multiple private investment funds for which SST, SSCIIM or
SSTP acts as investment adviser.
(b) Address of Principal Business Office or, if none, Residence: 515
Madison Avenue, New York, NY 10022
(c) Citizenship: SST and LLC SSCIIM are both Delaware limited liability
companies, SSTP is a Delaware limited partnership, and Seymour and
Kenneth are both United States citizens
(d) Title of Class of Securities: Common Stock; $.01 par value.
(e) CUSIP Number: 290151307
ITEM 3. SST, SSCIIM and SSTP are registered investments advisers. Seymour and
Kenneth are control persons of SST, SSCIIM and SSTP
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: 827,743
(b) Percent of class: 9.18%
(c) Number of shares as to which the person has:
(i) Sole power to vote or to direct the vote: 827,743
7
(ii) Shared power to vote or to direct the vote: -0-.
(iii) Sole power to dispose or to direct the disposition of: 827,743
(iv) Shared power to dispose or to direct the disposition of: -0-.
Instruction. For computations regarding securities which represent a right to
acquire an underlying security see Section 240.13d3(d)(1).
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 [ ].
Instruction: Dissolution of a group requires a response to this item.
ITEM 6. Ownership of More than Five Percent on Behalf of Another Person.
The limited partners of (or investors in) each of private investment funds for
which SST, SSCIIM or SSTP acts as investment adviser have the right to
participate in the receipt of dividends from, and proceeds from the sale of, the
shares held for the accounts of such funds in accordance with their respective
limited partnership interest (or investment percentages) in such funds.
ITEM 7. Identification and Classification of the Subsidiary Which Acquired the
Security Being Reported on By the Parent Holding Company
ITEM 8. Identification and Classification of Members of the Group
If a group has filed this schedule pursuant to Section 240.13d-1(b)(1)(ii)(J),
so indicate under Item 3(j) and attach an exhibit stating the identity and Item
3 classification of each member of the group. If a group has filed this schedule
pursuant to Section 240.13d-1(c) or Section 240.13d-1(d), attach an exhibit
stating the identity of each member of the group.
ITEM 9. Notice of Dissolution of Group
Notice of dissolution of a group may be furnished as an exhibit stating the date
of the dissolution and that all further filings with respect to transactions in
the security reported on will be filed, if required, by members of the group, in
their individual capacity. See Item 5.
ITEM 10. Certification
(a) The following certification shall be included if the statement is
filed pursuant to Section 240.13d-1(b):
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired and are held in
the ordinary course of business and 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.
8
SIGNATURES
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.
Dated: February 14, 2007
S Squared Technology, LLC
By: /s/ Seymour L. Goldblatt
------------------------------------
Seymour L. Goldblatt
President
S Squared Capital II Management, LLC
By: /s/ Seymour L. Goldblatt
------------------------------------
Seymour L. Goldblatt
President
S Squared Technology Partners, L.P.
By: /s/ Seymour L. Goldblatt
------------------------------------
Seymour L. Goldblatt
President
/s/ Seymour L. Goldblatt
----------------------------------------
Seymour L. Goldblatt
/s/ Kenneth A. Goldblatt
----------------------------------------
Kenneth A. Goldblatt
The original statement shall be signed by each person on whose behalf the
statement is filed or his authorized representative. If the statement is signed
on behalf of a person by his authorized representative other than an executive
officer or general partner of the filing person, evidence of the
representative's authority to sign on behalf of such person shall be filed with
the statement, provided, however, that a power of attorney for this purpose
which is already on file with the Commission may be incorporated by reference.
The name and any title of each person who signs the statement shall be typed or
printed beneath his signature.
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Section 240.13d-7 for other
parties for whom copies are to be sent.
ATTENTION: INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE FEDERAL
CRIMINAL VIOLATIONS (SEE 18 U.S.C. 1001)
9
EXHIBIT INDEX
Exhibit A -- Agreement among SST, SSCIIM, SSTP, Seymour and Kenneth to file this
statement jointly on behalf of each of them.
10