SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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SCHEDULE 13D*
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO
RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a)
Captaris, Inc.
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(Name of Issuer)
Common Stock, par value $0.01 per share
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(Title of Class of Securities)
14071N104
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(CUSIP Number)
Mr. Charles Frumberg
Emancipation Capital
1120 Avenue of the Americas, Suite 1504
New York, NY 10036
(212) 626-2641
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
January 29, 2008
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(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. [ ]
NOTE: Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. See Rule 13d-7 for
other parties to whom copies are to be sent.
(Continued on following pages)
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* 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 ("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. 641144308 13D Page 2 of 10 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO.
OF ABOVE (ENTITIES ONLY)
Emancipation Capital, LP
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP *
(a) [ ]
(b) [ ]
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(3) SEC USE ONLY
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(4) SOURCE OF FUNDS*
OO
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(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e)
[ ]
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(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF (7) SOLE VOTING POWER
-0-
SHARES
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BENEFICIALLY (8) SHARED VOTING POWER
1,371,756
OWNED BY
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EACH (9) SOLE DISPOSITIVE POWER
-0-
REPORTING
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PERSON WITH (10) SHARED DISPOSITIVE POWER
1,371,756
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(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,371,756
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(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES
* [ ]
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(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
5.1%
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(14) TYPE OF REPORTING PERSON *
PN
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* SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 641144308 13D Page 3 of 10 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO.
OF ABOVE (ENTITIES ONLY)
Emancipation Capital, LLC
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP *
(a) [ ]
(b) [ ]
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(3) SEC USE ONLY
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(4) SOURCE OF FUNDS*
OO
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(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e)
[ ]
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(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF (7) SOLE VOTING POWER
-0-
SHARES
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BENEFICIALLY (8) SHARED VOTING POWER
1,371,756
OWNED BY
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EACH (9) SOLE DISPOSITIVE POWER
-0-
REPORTING
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PERSON WITH (10) SHARED DISPOSITIVE POWER
1,371,756
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(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,371,756
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(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES
* [ ]
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(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
5.1%
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(14) TYPE OF REPORTING PERSON *
OO
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* SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 641144308 13D Page 4 of 10 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO.
OF ABOVE (ENTITIES ONLY)
Emancipation Capital Master, Ltd.
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP *
(a) [ ]
(b) [ ]
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(3) SEC USE ONLY
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(4) SOURCE OF FUNDS*
OO
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(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e)
[ ]
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(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
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NUMBER OF (7) SOLE VOTING POWER
-0-
SHARES
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BENEFICIALLY (8) SHARED VOTING POWER
1,371,756
OWNED BY
--------------------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
-0-
REPORTING
--------------------------------------------------------------
PERSON WITH (10) SHARED DISPOSITIVE POWER
1,371,756
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(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,371,756
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(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES
* [ ]
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(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
5.1%
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(14) TYPE OF REPORTING PERSON *
CO
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* SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 641144308 13D Page 5 of 10 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO.
OF ABOVE (ENTITIES ONLY)
Charles Frumberg
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP *
(a) [ ]
(b) [ ]
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(3) SEC USE ONLY
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(4) SOURCE OF FUNDS*
OO
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(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e)
[ ]
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(6) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF (7) SOLE VOTING POWER
-0-
SHARES
-------------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER
1,371,756
OWNED BY
-------------------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
-0-
REPORTING
-------------------------------------------------------------
PERSON WITH (10) SHARED DISPOSITIVE POWER
1,371,756
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(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,371,756
-----------------------------------------------------------------------------
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES
* [ ]
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(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.1%
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(14) TYPE OF REPORTING PERSON *
IN
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* SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 641144308 13D Page 6 of 10 Pages
Item 1. Security and Issuer.
This statement on Schedule 13D relates to the shares ("Shares") of
common stock, $0.01 par value, of Captaris, Inc. (the "Issuer"). The principal
executive office of the Issuer is located at 10885 N.E. 4th Street, Suite 400,
Bellevue, Washington 98004.
Item 2. Identity and Background.
(a) This statement is filed by:
(i) Emancipation Capital, LP, a Delaware limited partnership
("Emancipation Capital");
(ii) Emancipation Capital, LLC, a Delaware limited liability
company ("Emancipation Capital LLC");
(iii) Emancipation Capital Master, Ltd., a Cayman islands
exempted company ("Emancipation Master Ltd"); and
(iv) Mr. Charles Frumberg ("Mr. Frumberg) who serves as the
managing member of Emancipation Management LLC,
("Emancipation Management") which acts as the investment
manager of Emancipation Master Ltd, (Emancipation Capital,
Emancipation Capital LLC, Emancipation Master Ltd and Mr.
Frumberg are sometimes hereinafter referred to
collectively as the "Reporting Persons");
Emancipation Capital LLC, acts as the general partner of Emancipation
Capital and has voting and dispositive power over the securities held by
Emancipation Capital. The managing member of Emancipation Capital LLC is Mr.
Frumberg. Emancipation Management LLC, acts as the investment manager of
Emancipation Master Ltd. The managing member of Emancipation Management is Mr.
Frumberg.
Each of the Reporting Persons expressly disclaim beneficial ownership
of securities held by any person or entity other than, to the extent of any
pecuniary interest therein, the various accounts under such Reporting Persons'
management and control.
(b) The address of the principal business and principal office of each
of the Reporting Persons is 1120 Avenue of the Americas, Suite 1504, New York,
NY 10036.
(c) The principal business of Emancipation Capital, Emancipation
Capital LLC and Emancipation Master Ltd is investing in securities. Mr. Frumberg
serves as managing member of Emancipation Management.
(d) The Reporting Persons have not, during the last five years, been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) The Reporting Persons have not, during the last five years, been
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding were or are subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject
CUSIP No. 641144308 13D Page 7 of 10 Pages
to, federal or state securities laws or finding any violation with respect to
such laws.
(f) Mr. Frumberg is a US citizen.
Item 3. Source and Amount of Funds or Other Consideration.
As of January 29, 2008, the aggregate amount of funds used to purchase
the Shares held by the Reporting Persons was $5.7 million. The Shares
beneficially owned by the Reporting Persons were acquired with investment funds
in accounts under management.
Item 4. Purpose of Transaction.
The Reporting Persons acquired their Shares for investment in the
ordinary course of business. However, the Reporting Persons believe that the
Shares at current market prices are undervalued. The Reporting Persons feel that
the Issuer's Board needs to form an independent Special Committee to more fully
explore strategic alternatives that maximize value. In the ordinary course of
their investment business, from time to time, representatives of the Reporting
Persons engage in discussions with the management of companies in which they
have invested concerning the business and operations of such companies and
potential approaches to maximizing shareholder value. The Reporting Persons
intend to continue to engage in such discussions with the Issuer and may do so
with other holders of the Issuer's Shares and/or third parties as well.
The Reporting Persons have no present plan or proposal that would
relate to or result in any of the matters set forth in subparagraphs (a)-(j) of
Item 4 of Schedule 13D except as set forth herein or such as would occur upon
completion of any of the actions discussed herein. The Reporting Persons intend
to review their investment in the Issuer on a continuing basis. Depending on
various factors including, without limitation, the Issuer's financial position
and strategic direction, price levels of the Shares, conditions in the
securities market and general economic and industry conditions, the Reporting
Persons may in the future take such actions with respect to their investment in
the Issuer as they deem appropriate including, without limitation, purchasing
additional Shares or selling some or all of their Shares, hedging their
positions and/or otherwise changing their intentions with respect to any and all
matters referred to in Item 4.
Item 5. Interest in Securities of the Company.
(a) As of January 29, 2008, the Reporting Persons beneficially owned,
in the aggregate, approximately 5.1% of the Issuer's outstanding Shares. The
aggregate percentage of Shares reported to be beneficially owned by the
Reporting Persons is based upon 26,645,544 Shares outstanding, which is the
total number of Shares outstanding as of November 1, 2007, as reported in the
Issuer's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007.
CUSIP No. 641144308 13D Page 8 of 10 Pages
(b) The Reporting Persons have the following voting and dispositive
powers over the Shares reported herein:
(i) Emancipation Capital: Beneficial owner, with shared power to
vote or direct the vote and to dispose or direct the disposition, of 1,371,756
Shares, or an aggregate of 5.1% of outstanding Shares.
(ii) Emancipation Capital LLC: Beneficial owner, with shared power
to vote or direct the vote and to dispose or direct the disposition, of
1,371,756 Shares, or an aggregate of 5.1% of outstanding Shares.
(iii) Emancipation Master Ltd: Beneficial owner, with shared power
to vote or direct the vote and to dispose or direct the disposition, of
1,371,756 Shares, or an aggregate of 5.1% of outstanding Shares.
(iv) Mr. Frumberg: Beneficial owner, with shared power to vote or
direct the vote and to dispose or direct the disposition, of 1,371,756 Shares
and, or an aggregate of 5.1% of outstanding Shares.
(c) The following table sets forth all transactions with respect to the
Shares effected during the past sixty (60) days by any of the Reporting Persons,
inclusive of the transaction effected through 4:00 pm, New York City time, on
January 29, 2008. All such transactions were effected in the open market.
Name Date No. of Price Per Transaction
Shares Share (4) Type
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Emancipation Capital 11/30/2007 25,000 4.04 Purchase
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Emancipation Capital 12/03/2007 18,346 4.02 Purchase
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Emancipation Capital 12/04/2007 900 4.05 Purchase
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Emancipation Capital 12/05/2007 10,044 4.15 Purchase
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Emancipation Capital 12/07/2007 15,730 4.44 Purchase
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Emancipation Capital 12/10/2007 20,757 4.44 Purchase
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Emancipation Capital 12/11/2007 54,000 4.42 Purchase
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Emancipation Capital 12/12/2007 10,283 4.34 Purchase
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Emancipation Capital 12/13/2007 4,595 4.27 Purchase
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Emancipation Capital 12/14/2007 13,470 4.29 Purchase
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Emancipation Capital 12/17/2007 37,808 4.23 Purchase
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Emancipation Capital 12/18/2007 19,485 4.20 Purchase
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Emancipation Capital 12/19/2007 5,504 4.09 Purchase
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Emancipation Capital 12/20/2007 20,855 4.19 Purchase
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CUSIP No. 641144308 13D Page 9 of 10 Pages
Name Date No. of Price Per Transaction
Shares Share (4) Type
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Emancipation Capital 12/21/2007 10,000 4.13 Purchase
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Emancipation Capital 12/26/2007 1,300 4.27 Purchase
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Emancipation Capital 12/28/2007 20,000 4.32 Purchase
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Emancipation Capital 12/31/2007 26,697 4.31 Purchase
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Emancipation Capital 01/02/2008 3,303 4.27 Purchase
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Emancipation Capital 01/23/2008 5,900 3.78 Purchase
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Emancipation Capital 01/24/2008 19,100 3.79 Purchase
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Emancipation Capital 01/25/2008 16,760 3.32 Purchase
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Emancipation Capital 01/25/2008 10,600 3.32 Purchase
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Emancipation Capital 01/28/2008 33,200 3.31 Purchase
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Emancipation Capital 01/29/2008 85,000 3.22 Purchase
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(d) No person (other than the Reporting Persons) is known to have the
right to receive or the power to direct the receipt of dividends from, or the
proceeds from the sale of, the Shares.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships
with Respect to Securities of the Company.
Except as otherwise set forth herein, the Reporting Persons do not have
any contract, arrangement, understanding or relationship with any person with
respect to securities of the Issuer.
Item 7. Material to be Filed as Exhibits.
1. Exhibit I - Joint Filing Agreement, dated as of January 31, 2008
CUSIP No. 641144308 13D Page 10 of 10 Pages
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: January 31, 2008
EMANCIPATION CAPITAL, LP
By: Emancipation Capital, LLC, its
general partner
By: /s/ Charles Frumberg
-----------------------------
Name: Charles Frumberg
Title: Managing Member
EMANCIPATION CAPITAL MASTER LTD.
By: /s/ Charles Frumberg
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Name: Charles Frumberg
Title: Director
EMANCIPATION CAPITAL, LLC
By: /s/ Charles Frumberg
-----------------------------
Name: Charles Frumberg
Title: Managing Member
CHARLES FRUMBERG
/s/ Charles Frumberg
----------------------------------------