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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): April 17, 1997
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MECON, INC.
______________________________________________________________________________
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 0-27048 94-2702-762
_______________________________ _______________________ ___________________
(STATE OR OTHER JURISDICTION OF (COMMISSION FILE NUMBER) (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION
NUMBER)
200 Porter Drive, Suite 100
San Ramon, California 94583
____________________________________ ____________________________________
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE) (ZIP CODE)
(510) 838-1700
______________________________________________________________________________
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
Not applicable.
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______________________________________________________________________________
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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MECON, INC.
ITEM 5. OTHER EVENTS
On April 17, 1997, MECON, Inc. issued the press release attached as
Exhibit 99.1, the content of which is hereby incorporated by this reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
EXHIBIT NO. DESCRIPTION OF EXHIBITS
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99.1 Press Release dated April 17, 1997
SIGNATURE
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.
MECON, INC.
Dated: April 17, 1997 By /s/ David J. Allinson
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DAVID J. ALLINSON, Chief Financial Officer
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EXHIBIT INDEX
EXHIBIT NO. ITEM PAGE NO.
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99.1 Press Release dated April 17, 1997
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
April 17, 1997
Media Contact: Eleanor Anderson-Miles
510-838-1700 ext. 105
Investor Contact: David Allinson
510-838-1700 ext. 150
HEALTHCARE BENCHMARKING LEADER MECON ANNOUNCES
MANAGEMENT CHANGES AND RENEWED FOCUS ON HISTORICAL STRENGTHS
SAN RAMON, CA., April 17 -- MECON, Inc. (NASDAQ: MECN), a leading provider of
benchmarking data and cost management tools for healthcare delivery systems,
announced a series of management changes and corrective measures in response to
the previously announced, preliminary, unaudited results for the fourth quarter
ended March 31, 1997.
The Company announced a realignment of its senior management team. Les
Schmidt, the Company's President and Chief Executive Officer, has resigned to
pursue other interests. Vasu Devan, Chairman of the Company, will add to his
current position the additional roles of President and Chief Executive Officer,
positions he had held previously. David Allinson has agreed to remain at MECON
in his former capacity as Vice President of Finance and Chief Financial Officer.
MECON also announced a number of strategic and operational changes intended
to improve the Company's financial performance. As a first step, the Company
will renew its
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strategic emphasis on its historical strengths in benchmarking-based cost
management solutions and refocus its activities in the core markets served by
MECON's PEERView, OPTIMIS and value added services. "While we recognize that
the additional healthcare market sectors targeted by the Company's recently
increased investments in product development do represent growth
opportunities for MECON in the future, our near-term goals are to concentrate
on the Company's demonstrated leadership position in benchmarking-based cost
management for health care providers," stated Vasu Devan, CEO of MECON.
In addition, the Company has taken action intended to reduce its ongoing
quarterly operating expense base. As part of this expense reduction effort,
the Company expects to immediately decrease its workforce by 38 employees and
incur a charge of approximately $750,000 during the first quarter of fiscal
1998. "These streamlining actions and the reduction in the Company's overall
quarterly operating expenses, along with our renewed focus on MECON's
historical growth markets, have been implemented in an effort to expedite the
Company's return to profitability and growth," stated Mr. Devan. "While we do
not anticipate an immediate return to MECON's historical operating results,
the Company continues to benefit from its strong balance sheet and its
ongoing base of recurring subscription and license revenue." The Company
expects to report audited results for its fiscal year ended March 31, 1997 in
late May 1997.
MECON is a leading provider of benchmark-based cost management solutions
to healthcare decision-makers across the continuum of care. The Company's
proprietary data,
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family of premium quality easy-to-use software products and services combine
to produce and sustain optimum performance in healthcare delivery systems.
The foregoing text contains forward-looking statements that involve risks and
uncertainties. The actual results of the Company could differ materially
from those projected in the forward-looking statements as a result of the
Company's annual audit for the fiscal year ended March 31, 1997, as well as
the impact of risks detailed from time to time in the Company's filings with
the Securities and Exchange Commission, including its most recent forms
10-QSB and 10-KSB. Readers should carefully review the risk factors described
in these documents.
