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Aug 17, 1998, 12:00am EDT

Deltek executives look to cash in personal stock

Chet Dembeck

Officials at McLean-based Deltek Systems Inc. could walk away with millions of dollars under a plan to sell some of their shares in a new offering.

Company insiders would gross a total $67.1 million by selling 2.9 million shares, according to an Aug. 3 filing with the U.S. Securities and Exchange Commission.

Deltek also will offer 500,000 new shares, raising a total $10.5 million after underwriting costs. The company, which designs accounting and time sheet software, will use the proceeds as capital and for possible acquisitions.

The total 3.4 million shares of common stock will be offered at $23.13 a share. No date for the sale has been announced.

President and Chief Executive Officer Kenneth E. deLaski would sell 300,000 personal shares, grossing $6.9 million. He would retain 3.6 million shares, or 19.4 percent of the company.

Chairman and Treasurer Donald deLaski would sell 969,000 shares, grossing about $22.4 million. He would continue to hold 3 million shares, or 16.3 percent of Deltek.

Alan R. Stewart, Deltek's chief financial officer, said Donald deLaski is selling part of his stock because the 66-year-old founder is getting ready to retire. His 40-year-old son, Kenneth E. deLaski, and his wife, Tena, are selling some of their shares to fund a charitable foundation, he said.

Farley C. Shiner, an analyst who follows Deltek for Richmond-based Scott & Stringfellow, said the sale allows principals to cash in some of their stock without causing a negative market reaction.

"It's much better when a group of stockholders divest some of their wealth in an orderly fashion than to have one of them suddenly sell a million shares," Shiner said.

Others executives and large shareholders who filed to sell some of their shares include: Executive Vice President of Technical Operations Eric F. Brown, 60,000 shares; Tena R. deLanski, 100,000 shares; Donald and Nancy D. deLanski Foundation, 600,000 shares; and Kenneth E. and Tena R. deLanski Foundation, 250,000 shares.

Chester A. Shuman, founder and president of Cambridge, Mass.-based Harper and Shuman Inc., which Deltek acquired in May for $15 million, also filed to sell 416,165 shares. Deltek bought the company, which designs software for architectural and engineering firms, to expand its market.

The secondary offering comes 1-1/2 years after Deltek's initial public offering. Deltek was founded in 1983 and employs 523 people.

The company lost $1.7 million, or 10 cents a share, on revenue of $19.9 million in the second quarter, compared with earnings of $2.4 million, or 14 cents a share, on revenue of $10.5 million a year ago. Deltek attributed the loss to a one-time charge for recent acquisitions.

Shares of Deltek Systems (Nasdaq: DKTK) closed Aug. 10 at $20.50. The 52-week high is $25.25; the 52-week low is $14.