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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 2, 2002

TIER TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)

California   000-23195   94-3145844
(State or other jurisdiction
of incorporation)		   (Commission
File Number)		   (IRS Employer
Identification No.)

1350 Treat Boulevard, Suite 250
Walnut Creek, California
 
 
 
94597
(Address of principal executive offices)       (Zip Code)

(925) 937-3950
(Registrant's telephone number, including area code)


Item 2. Acquisition or Disposition of Assets.

        On September 2, 2002, Tier Technologies, Inc., a California corporation (the "Company"), closed the sale to Oakton Limited of substantially all of the assets and certain liabilities of Tier Technologies (Australia) Pty Limited, ADC Consultants Pty Limited, and GC Simsion, GR Bowles & Associates Pty Limited (collectively "Tier Australia"). Purchase consideration for the sale totaled approximately $4.1 million in cash (based on current exchange rates) and selling costs are approximately $1.8 million (based on current exchange rates). The purchase price was determined by arms-length negotiations between representatives of the Company and Oakton Limited. The description of the transaction contained in this Item 2 is qualified in its enterity by reference to the full text of the Sale of Business Agreement, a copy of which was previously filed with the Company's Form 8-K filed August 20, 2002.


Item 7. Financial Statements and Exhibits.

(b)
Pro Forma Financial Information.
(c)
Exhibits.

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SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

    TIER TECHNOLOGIES, INC.

 
 
By:
/s/  LAURA B. DEPOLE      
Laura B. DePole
 Chief Financial Officer

Date: September 17, 2002
 
 
 

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Unaudited Pro Forma
Condensed Consolidated Financial Information

        On September 2, 2002, the Company completed the sale of substantially all of the assets and certain liabilities of Tier Australia. The unaudited pro forma financial information is filed as part of this current report to reflect the Company's disposition of Tier Australia.

        The pro forma condensed consolidated financial statements have been adjusted to exclude the effect of Tier Australia for each respective financial statement period. The adjustments presented in the pro forma condensed consolidated statements of operations represent the pro forma historical results of Tier Australia. The adjustments presented in the pro forma condensed consolidated balance sheet assume that the disposition of Tier Australia occurred on June 30, 2002.

        The unaudited pro forma condensed consolidated financial statements are presented for illustrative purposes only and are not necessarily indicative of the operating results or financial position that would have actually occurred if the disposition had been consummated as of the date indicated, nor are they necessarily indicative of future operating results or financial position.

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TIER TECHNOLOGIES, INC.

PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

June 30, 2002

(in thousands)
(unaudited)

 
   Company
   Adjustments
    
   Pro Forma
  
ASSETS                        
Current assets:                        
  Cash and cash equivalents   $ 46,025   $ 4,509   (2,4)   $ 50,534  
  Short-term investments     15,501               15,501  
  Accounts receivable, net     28,543               28,543  
  Prepaid expenses and other current assets     4,857     1,600   (2,5)     6,457  
   
 
     
 
    Total current assets     94,926     6,109         101,035  

Equipment and software, net
 
 
7,916
 
 
 
 
 
 
 
7,916
 
Notes and accrued interest receivable from related parties     2,051               2,051  
Goodwill and other acquired intangible assets, net     32,660               32,660  
Long-term investments     33,542               33,542  
Other assets     5,122               5,122  
Net assets of discontinued operations     4,105     (4,105 ) (2,4)     —  
   
 
     
 
Total assets   $ 180,322   $ 2,004       $ 182,326  
   
 
     
 

LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:                        
  Accounts payable   $ 1,153             $ 1,153  
  Accrued liabilities     5,543   $ 1,797   (3)     7,340  
  Accrued subcontractor expenses     597               597  
  Accrued compensation and related liabilities     3,222               3,222  
  Purchase price payable     1,775               1,775  
  Liabilities of discontinued operation     —     1,545   (4)     1,545  
  Other current liabilities     2,248               2,248  
   
 
     
 
    Total current liabilities     14,538     3,342         17,880  
Long-term debt, less current portion     282               282  
Other liabilities     286               286  
   
 
     
 
Total liabilities     15,106     3,342         18,448  
   
 
     
 

Shareholders' equity:
 
 
 
 
 
 
 
 
 
 
 
 
  Common stock, no par value     163,519     3,389   (1,5)     166,908  
  Notes receivable from shareholders     (1,773 )             (1,773 )
  Accumulated other comprehensive loss     (587 )             (587 )
  Retained earnings (deficit)     4,057     (4,727 ) (1,2,3)     (670 )
   
 
     
 
Total shareholders' equity     165,216     (1,338 )       163,878  
   
 
     
 
Total liabilities and shareholders' equity   $ 180,322   $ 2,004       $ 182,326  
   
 
     
 
(1)
Record acceleration of vesting of stock options of employees of discontinued operation resulting in a charge of $1,902.
(2)
Record proceeds from sale of assets and liabilities of $3,961 in cash and $113 in escrow funds included in other current assets. These proceeds were converted into U.S. dollars using the June 30, 2002 exchange rate.
(3)
Record selling costs.
(4)
Reclassify cash of $548 and liabilities of $1,545 of discontinued operation retained by the Company.
(5)
Record proceeds of $1,487 from exercise of in-the-money accelerated options.

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TIER TECHNOLOGIES, INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Nine Months Ended June 30, 2002 and 2001

(in thousands, except per share data)
(unaudited)

 
   For the nine months ended June 30,
 
   2002(1)
   2001(1)
Revenues(2)   $ 71,404   $ 74,032
Cost of revenues(2)     42,751     46,121
   
 
Gross profit     28,653     27,911
Costs and expenses:            
  Selling and marketing     3,997     4,741
  General and administrative     12,039     12,728
  Depreciation and amortization     4,096     3,804
   
 
Income from continuing operations     8,521     6,638
Interest income (expense), net     1,103     669
   
 
Income from continuing operations before income taxes     9,624     7,307
Provision for income taxes     3,561     2,645
   
 
Income from continuing operations, net of income taxes   $ 6,063   $ 4,662
   
 

Income from continuing operations, net of income taxes:
 
 
 
 
 
 
  Per common share   $ 0.36   $ 0.37
   
 
  Per diluted share   $ 0.34   $ 0.35
   
 
Shares used in computing basic income from continuing operations per share     16,705     12,576
   
 
Shares used in computing diluted income from continuing operations per share     17,944     13,177
   
 
(1)
No pro forma adjustments were necessary for the nine months ended June 30, 2002 and 2001 as the operations of Tier Australia were reported as discontinued operations for these periods in the Quarterly Report on Form 10-Q filed August 13, 2002.

(2)
Revenues and cost of revenues for the nine months ended June 30, 2002 and 2001 include reimbursable expenses.

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TIER TECHNOLOGIES, INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

For The Fiscal Year Ended September 30, 2001

(in thousands, except per share data)
(unaudited)

 
   Company
   Adjustments(1)
   Pro Forma
Revenues(2)   $ 116,648   $ (20,607 ) $ 96,041
Cost of revenues(2)     71,936     (13,387 )   58,549
   
 
 
Gross profit     44,712     (7,220 )   37,492

Costs and expenses:
 
 
 
 
 
 
 
 
 
  Selling and marketing     7,887     (1,615 )   6,272
  General and administrative     21,238     (5,002 )   16,236
  Depreciation and amortization     7,193     (2,041 )   5,152
   
 
 
Income from operations     8,394     1,438     9,832
Interest income (expense), net     707     81     788
   
 
 
Income before income taxes     9,101     1,519     10,620
Provision for income taxes     3,549     338     3,887
   
 
 
Net income   $ 5,552   $ 1,181   $ 6,733
   
 
 
Basic net income per share   $ 0.44         $ 0.53
   
       
Shares used in computing basic net income per share     12,687           12,687
   
       
Diluted net income per share   $ 0.41         $ 0.50
   
       
Shares used in computing diluted net income per share     13,455           13,455
   
       
(1)
Adjustments reflect the elimination of Tier Australia's operations, net of intercompany transactions.

(2)
Revenues and cost of revenues for the fiscal year ended September 30, 2001 do not include reimbursable expenses.

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TIER TECHNOLOGIES, INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

For The Fiscal Year Ended September 30, 2000

(in thousands, except per share data)
(unaudited)

 
   Company
   Adjustments(1)
   Pro Forma
Revenues(2)   $ 109,424   $ (26,452 ) $ 82,972
Cost of revenues(2)     66,712     (16,629 )   50,083
   
 
 
Gross profit     42,712     (9,823 )   32,889

Costs and expenses:
 
 
 
 
 
 
 
 
 
  Selling and marketing     7,378     (1,539 )   5,839
  General and administrative     22,923     (5,617 )   17,306
  Other nonrecurring charges     2,195     —     2,195
  Depreciation and amortization     6,100     (1,928 )   4,172
   
 
 
Income from operations     4,116     (739 )   3,377
Interest income (expense), net     899     4     903
   
 
 
Income before income taxes     5,015     (735 )   4,280
Provision for income taxes     2,696     (449 )   2,247
   
 
 
Net income   $ 2,319   $ (286 ) $ 2,033
   
 
 
Basic net income per share   $ 0.19         $ 0.16
   
       
Shares used in computing basic net income per share     12,344           12,344
   
       
Diluted net income per share   $ 0.18         $ 0.16
   
       
Shares used in computing diluted net income per share     12,740           12,740
   
       
(1)
Adjustments reflect the elimination of Tier Australia's operations, net of intercompany transactions.

(2)
Revenues and cost of revenues for the fiscal year ended September 30, 2000 do not include reimbursable expenses.

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TIER TECHNOLOGIES, INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

For The Fiscal Year Ended September 30, 1999

(in thousands, except per share data)
(unaudited)

 
   Company
   Adjustments(1)
   Pro Forma
  
Revenues(2)   $ 91,976   $ (20,091 ) $ 71,885  
Cost of revenues(2)     56,236     (12,168 )   44,068  
   
 
 
 
Gross profit     35,740     (7,923 )   27,817  

Costs and expenses:
 
 
 
 
 
 
 
 
 
 
  Selling and marketing     6,095     (1,727 )   4,368  
  General and administrative     19,596     (3,787 )   15,809  
  Purchased in-process technology     4,000     —     4,000  
  Reserve for contract dispute     1,856     —     1,856  
  Depreciation and amortization     3,864     (1,340 )   2,524  
   
 
 
 
Income (loss) from operations     329     (1,069 )   (740 )
Interest income (expense), net     1,321     (41 )   1,280  
   
 
 
 
Income before income taxes     1,650     (1,110 )   540  
Provision (benefit) for income taxes     644     (939 )   (295 )
   
 
 
 
Net income   $ 1,006   $ (171 ) $ 835  
   
 
 
 
Basic net income per share   $ 0.08         $ 0.07  
   
       
 
Shares used in computing basic net income per share     12,056           12,056  
   
       
 
Diluted net income per share   $ 0.08         $ 0.06  
   
       
 
Shares used in computing diluted net income per share     12,869           12,869  
   
       
 
(1)
Adjustments reflect the elimination of Tier Australia's operations, net of intercompany transactions.

(2)
Revenues and cost of revenues for the fiscal year ended September 30, 1999 do not include reimbursable expenses.

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QuickLinks

SIGNATURES
Unaudited Pro Forma Condensed Consolidated Financial Information
TIER TECHNOLOGIES, INC. PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET June 30, 2002 (in thousands) (unaudited)
TIER TECHNOLOGIES, INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Nine Months Ended June 30, 2002 and 2001 (in thousands, except per share data) (unaudited)
TIER TECHNOLOGIES, INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS For The Fiscal Year Ended September 30, 2001 (in thousands, except per share data) (unaudited)
TIER TECHNOLOGIES, INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS For The Fiscal Year Ended September 30, 2000 (in thousands, except per share data) (unaudited)
TIER TECHNOLOGIES, INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS For The Fiscal Year Ended September 30, 1999 (in thousands, except per share data) (unaudited)