SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. 2)* Forgent Networks, Inc. ------------------------------------------------- (Name of Issuer) Common Stock, par value $.01 per share ------------------------------------------------- (Title of Class of Securities) 34629U103 --------------------------------------- (CUSIP Number) RED OAK PARTNERS, LLC 654 Broadway, Suite 5 New York, NY 10012 Attention: David Sandberg Telephone: (212) 614-8952 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) May 13, 2009 ------------------------------------------------- (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 Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box [X]. 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 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 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.) Page 1 of 9 pagesCUSIP No.: 34629U103 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) Red Oak Partners, LLC 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] 3 SEC USE ONLY 4 SOURCE OF FUNDS AF 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] 6 CITIZENSHIP OR PLACE OF ORGANIZATION New York NUMBER OF 7 SOLE VOTING POWER 0 SHARES BENEFICIALLY 8 SHARED VOTING POWER - 2,285,796 OWNED BY EACH 9 SOLE DISPOSITIVE POWER 0 REPORTING PERSON WITH 10 SHARED DISPOSITIVE POWER - 2,285,796 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,285,796 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.35%** 14 TYPE OF REPORTING PERSON OO _________________________________ ** Based on 31,111,278 shares of common stock of Forgent Networks, Inc. outstanding at March 11, 2009, as reported in Forgent Networks, Inc.'s Quarterly Report on Form 10-Q for the quarter ended January 31, 2009 filed with the Securities and Exchange Commission on March 13, 2009. Page 2 of 9 pages
CUSIP No.: 34629U103 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) The Red Oak Fund, LP 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] 3 SEC USE ONLY 4 SOURCE OF FUNDS WC 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] 6. CITIZENSHIP OR PLACE OF ORGANIZATION United States NUMBER OF 7 SOLE VOTING POWER 0 SHARES BENEFICIALLY 8 SHARED VOTING POWER - 812,177 OWNED BY EACH 9 SOLE DISPOSITIVE POWER 0 REPORTING PERSON WITH 10 SHARED DISPOSITIVE POWER - 812,177 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 812,177 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.61%** 14 TYPE OF REPORTING PERSON PN Page 3 of 9 pages
CUSIP No.: 34629U103 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) Pinnacle Partners, LLC 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] 3 SEC USE ONLY 4 SOURCE OF FUNDS AF 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] 6 CITIZENSHIP OR PLACE OF ORGANIZATION Colorado NUMBER OF 7 SOLE VOTING POWER 0 SHARES BENEFICIALLY 8 SHARED VOTING POWER - 946,950 OWNED BY EACH 9 SOLE DISPOSITIVE POWER 0 REPORTING PERSON WITH 10 SHARED DISPOSITIVE POWER - 946,950 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 946,950 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.05%** 14 TYPE OF REPORTING PERSON OO Page 4 of 9 pages
CUSIP No.: 34629U103 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) Pinnacle Fund, LLLP 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] 3 SEC USE ONLY 4 SOURCE OF FUNDS WC 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] 6 CITIZENSHIP OR PLACE OF ORGANIZATION Colorado NUMBER OF 7 SOLE VOTING POWER 0 SHARES BENEFICIALLY 8 SHARED VOTING POWER - 946,950 OWNED BY EACH 9 SOLE DISPOSITIVE POWER 0 REPORTING PERSON WITH 10 SHARED DISPOSITIVE POWER - 946,950 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 946,950 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.05%** 14 TYPE OF REPORTING PERSON PN Page 5 of 9 pages
CUSIP No.: 34629U103 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) Bear Market Opportunity Fund, L.P. 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] 3 SEC USE ONLY 4 SOURCE OF FUNDS WC 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware NUMBER OF 7 SOLE VOTING POWER 0 SHARES BENEFICIALLY 8 SHARED VOTING POWER - 526,669 OWNED BY EACH 9 SOLE DISPOSITIVE POWER 0 REPORTING PERSON WITH 10 SHARED DISPOSITIVE POWER - 526,669 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 526,669 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.69%** 14 TYPE OF REPORTING PERSON PN Page 6 of 9 pages
CUSIP No.: 34629U103 1. NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) David Sandberg 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] 3 SEC USE ONLY 4 SOURCE OF FUNDS AF 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] 6. CITIZENSHIP OR PLACE OF ORGANIZATION United States NUMBER OF 7 SOLE VOTING POWER SHARES BENEFICIALLY 8 SHARED VOTING POWER - 2,285,796 OWNED BY EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 10 SHARED DISPOSITIVE POWER - 2,285,796 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,285,796 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.35%** 14 TYPE OF REPORTING PERSON IN Page 7 of 9 pages
ITEM 4. Purpose of Transaction. Item 4 as previously filed is amended by adding the following language: On May 13th, 2009 the filing persons filed with the Securities and Exchange Commission a preliminary proxy statement in opposition to the proposed "going private" transactions to be voted on at a Company special meeting currently scheduled to be held June 2, 2009. That statement, when final, will be used to seek votes against the going private proposals. The statement also discloses an intention to nominate candidates for election to the Company's board at the next annual meeting, whether or not the going private proposals are adopted, and advocates certain changes in Company policies. Red Oak and the other filing persons specifically disclaim any intention to assume control of the Company, and stated that they expect a majority of their nominees will be persons not affiliated with Red Oak. The Company has at this time not set a date for its next stockholder meeting to elect directors. Because Red Oak intends to commence a proxy fight to oppose the intended going-private transaction and has expressed the intent to seek a change in control of the Company (even though Red Oak does not itself seek to control the Company), the statements in the preliminary proxy statement are hereby incorporated into this Item 4 in response to parts (a) through (f) of Item 4. The preliminary proxy statement is attached as "Exhibit A ." ITEM 7. Material to be Filed as Exhibits. Item 7 is hereby amended to add the following exhibits: Exhibit A: Preliminary Proxy Statement Page 8 of 9 pages
SIGNATURES After reasonable inquiry and to the best of its knowledge and belief, each of the undersigned certifies that the information set forth in this Statement is true, complete and correct. Dated: May 13, 2009 /s/ David Sandberg - ------------------------- David Sandberg Red Oak Partners LLC By: /s/ David Sandberg ------------------------------- David Sandberg, Managing Member Pinnacle Partners, LLP By: Red Oak Partners LLC, its general partner By: /s/ David Sandberg ------------------------------- David Sandberg, Managing Member The Red Oak Fund, L.P. By: Red Oak Partners LLC, its general partner By: /s/ David Sandberg ------------------------------- David Sandberg, Managing Member Pinnacle Fund, LLLP By: Pinnacle Partners, LLC, its general partner By: Red Oak Partners LLC, its general partner By: /s/ David Sandberg ------------------------------- David Sandberg, Managing Member Bear Market Opportunity Fund, L.P. By: Red Oak Partners, LLC, its investment advisor By: /s/ David Sandberg ------------------------------- David Sandberg, Managing Member Page 9 of 9 pages
x
|
Preliminary
Proxy Statement
|
|
o
|
Confidential,
for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
|
|
o
|
Definitive
Proxy Statement
|
|
o
|
Definitive
Additional Materials
|
|
o
|
Soliciting
Material under Rule 14a-12
|
x
|
No
fee required.
|
o
|
Fee
computed on table below per Exchange Act Rules 14a-6(i)(1) and
0-11.
|
||
1.
|
Title
of each class of securities to which transaction
applies:
|
||
2.
|
Aggregate
number of securities to which transaction applies:
|
||
3.
|
Per
unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is
calculated and state how it was determined):
|
||
4.
|
Proposed
maximum aggregate value of transaction:
|
||
5.
|
Total
fee paid:
|
o
|
Fee
paid previously with preliminary
materials.
|
o
|
Check
box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
|
||
1.
|
Amount
Previously Paid:
|
||
2.
|
Form,
Schedule or Registration Statement No.:
|
||
3.
|
Filing
Party:
|
||
4.
|
Date
Filed:
|
PROXY
STATEMENT OF RED OAK
|
IN
OPPOSITION TO
|
THE
MANAGEMENT OF FORGENT NETWORKS, INC.
|
|
(1)
|
Taking
ASUR private is likely to result in severely limited liquidity for
remaining shareholders.
|
|
(2)
|
The
benefits claimed by the Company from implementing this proposal can for
the most part be obtained without depriving the stockholders of a public
market.
|
|
(3)
|
Paying
out $0.36 per share to only certain holders is wasteful and
unfair.
|
|
•
|
Rightsizing
the Company’s compensation beginning from the top down. The Company should
combine the CEO and COO functions immediately as we firmly believe the
Company does not require a CEO separate from the
COO.
|
|
•
|
According
to the Company’s proxy statement filed in 2008, the CEO/COO and CFO
functions were paid nearly $1 million in FY 2007 and have been paid
salaries nearly equal to the Company’s entire current market
capitalization value since 2003. This level of spending must be reduced to
align with ASUR’s level of profitability. Further, with an
estimated $6 million/year in compensation expense across roughly 55 US
employees and 40 employees in India, we believe the average US Employee
earns more than $90,000/year, an amount we also believe must be managed
better.
|
|
•
|
The
Company should realign service provider costs, including terminating Ernst
& Young as auditor, Winstead PC as legal counsel, and immediately
repricing ASUR’s egregious $360,000/year D&O policy. A
company of ASUR’s size should retain less expensive advisors. We note that
in its Company proxy statement, ASUR claims to pay more than $150,000/year
in legal bills related to being a public company. We are
confident this can be reduced by a significant amount while the Company
remains public.
|
|
•
|
The
Company should implement a reverse stock split in order to regain NASDAQ
compliance with respect to a $1/share price. We recommend a
10-for-1 split, which would leave ASUR with just over 3 million shares
outstanding and could produce a price above
$1/share.
|
|
•
|
The
Company should adopt a significant share repurchase program which would
offer further liquidity to those shareholders who wish to sell while
simultaneously allowing for accretive purchase transactions for the
benefit of remaining shareholders.
|
|
•
|
The
Company should hold annual meetings in a timely manner subsequent to each
fiscal year end. We note that with a July fiscal year end,
ASUR’s 2009 annual meeting should have occurred in the March or April time
frame. No such meeting has yet been announced and shareholders
should be granted their rights to such a meeting on a regular – and timely
– basis. We believe it’s in shareholders’ best interests to
hold the 2009 meeting as soon as
possible.
|
|
•
|
The
Company should elect a board comprised of shareholders with vested
interests. The current Board and management team hold a
combined 2.3% of ASUR’s common stock, which is less than numerous
individual shareholders and institutions. We do not believe
that a board with low ownership delaying its annual meetings represents
good corporate governance. As noted above, we do not seek to
control the Board and welcome a board of independent
holders.
|
/s/
|
|
David
Sandberg
|
|
Red
Oak Partners
|
PURCHASER
|
TRADE
DATE
|
QUANTITY
|
|
Pinnacle
Fund
|
10/28/2008
|
32300
|
|
Red
Oak Fund
|
10/29/2008
|
19291
|
|
Red
Oak Fund
|
10/30/2008
|
3044
|
|
Red
Oak Fund
|
10/31/2008
|
51600
|
|
Pinnacle
Fund
|
10/31/2008
|
51600
|
|
Pinnacle
Fund
|
11/3/2008
|
12000
|
|
Pinnacle
Fund
|
11/5/2008
|
14000
|
|
Red
Oak Fund
|
11/5/2008
|
14000
|
|
Red
Oak Fund
|
11/6/2008
|
8050
|
|
Pinnacle
Fund
|
11/6/2008
|
8050
|
|
Pinnacle
Fund
|
11/7/2008
|
21900
|
|
Red
Oak Fund
|
11/7/2008
|
21900
|
|
Red
Oak Fund
|
11/10/2008
|
30000
|
|
Pinnacle
Fund
|
11/10/2008
|
30000
|
|
Pinnacle
Fund
|
11/11/2008
|
27500
|
|
Red
Oak Fund
|
11/11/2008
|
27500
|
|
Red
Oak Fund
|
11/12/2008
|
9049
|
|
Pinnacle
Fund
|
11/12/2008
|
9051
|
|
Pinnacle
Fund
|
11/13/2008
|
32493
|
|
Red
Oak Fund
|
11/13/2008
|
16000
|
|
Red
Oak Fund
|
11/14/2008
|
5200
|
|
Pinnacle
Fund
|
11/17/2008
|
100
|
|
Pinnacle
Fund
|
11/18/2008
|
38254
|
|
Red
Oak Fund
|
11/18/2008
|
38256
|
|
Red
Oak Fund
|
11/19/2008
|
5500
|
|
Pinnacle
Fund
|
11/19/2008
|
5500
|
|
Pinnacle
Fund
|
11/20/2008
|
20791
|
|
Red
Oak Fund
|
11/20/2008
|
40000
|
|
Red
Oak Fund
|
11/21/2008
|
10339
|
|
Pinnacle
Fund
|
11/21/2008
|
10338
|
|
Pinnacle
Fund
|
11/24/2008
|
800
|
|
Red
Oak Fund
|
12/2/2008
|
5000
|
|
Red
Oak Fund
|
12/3/2008
|
10002
|
|
Pinnacle
Fund
|
12/3/2008
|
10002
|
|
Pinnacle
Fund
|
12/4/2008
|
18774
|
|
Red
Oak Fund
|
12/4/2008
|
18774
|
|
Red
Oak Fund
|
12/5/2008
|
4950
|
|
Pinnacle
Fund
|
12/5/2008
|
4950
|
|
Pinnacle
Fund
|
12/12/2008
|
12710
|
|
Red
Oak Fund
|
12/12/2008
|
12710
|
|
Red
Oak Fund
|
12/15/2008
|
18525
|
|
Pinnacle
Fund
|
12/15/2008
|
18524
|
|
Pinnacle
Fund
|
12/17/2008
|
35100
|
|
Red
Oak Fund
|
12/17/2008
|
35100
|
|
Red
Oak Fund
|
12/18/2008
|
7900
|
|
Pinnacle
Fund
|
12/18/2008
|
7900
|
|
Pinnacle
Fund
|
12/19/2008
|
15600
|
|
Red
Oak Fund
|
12/19/2008
|
15600
|
|
Red
Oak Fund
|
12/22/2008
|
4300
|
|
Pinnacle
Fund
|
12/22/2008
|
4300
|
|
Pinnacle
Fund
|
12/23/2008
|
16700
|
|
Red
Oak Fund
|
12/23/2008
|
16700
|
|
Red
Oak Fund
|
12/26/2008
|
25650
|
PURCHASER
|
TRADE
DATE
|
QUANTITY
|
|
Pinnacle
Fund
|
12/26/2008
|
25650
|
|
Pinnacle
Fund
|
12/29/2008
|
67900
|
|
Red
Oak Fund
|
12/29/2008
|
67900
|
|
Red
Oak Fund
|
12/30/2008
|
31569
|
|
Pinnacle
Fund
|
12/30/2008
|
31569
|
|
Pinnacle
Fund
|
12/31/2008
|
7000
|
|
Red
Oak Fund
|
12/31/2008
|
7000
|
|
Red
Oak Fund
|
2/2/2009
|
143998
|
|
Pinnacle
Fund
|
2/2/2009
|
175997
|
|
Red
Oak Fund
|
2/3/2009
|
45533
|
|
Bear
Fund
|
2/9/2009
|
400
|
|
Bear
Fund
|
2/10/2009
|
1777
|
|
Bear
Fund
|
2/11/2009
|
285300
|
|
Bear
Fund
|
2/12/2009
|
23609
|
|
Bear
Fund
|
2/19/2009
|
80178
|
|
Bear
Fund
|
2/27/2009
|
114405
|
|
Pinnacle
Fund
|
2/27/2009
|
114405
|
|
Bear
Fund
|
3/2/2009
|
700
|
|
Bear
Fund
|
3/3/2009
|
8450
|
|
Pinnacle
Fund
|
3/3/2009
|
8450
|
|
Pinnacle
Fund
|
3/4/2009
|
4600
|
|
Pinnacle
Fund
|
3/5/2009
|
11850
|
|
Bear
Fund
|
3/5/2009
|
11850
|
|
Pinnacle
Fund
|
3/6/2009
|
12500
|
|
Red
Oak Fund
|
3/6/2009
|
12500
|
|
Pinnacle
Fund
|
3/9/2009
|
2300
|
|
Red
Oak Fund
|
3/10/2009
|
5144
|
|
Pinnacle
Fund
|
3/11/2009
|
1900
|
|
Pinnacle
Fund
|
3/16/2009
|
23592
|
|
Red
Oak Fund
|
3/16/2009
|
23593
|