<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): June 26, 1998
DAOU SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
0-22073 330284454
(Commission File Number) (IRS Employer Identification No.)
5120 Shoreham Place, San Diego, California 92122
(Address of principal executive offices, including zip code)
(619) 452-2221
(Registrant's telephone number, including area code)
<PAGE>
ITEM 5. OTHER EVENTS.
The registrant incorporates by reference herein the press release dated
June 26, 1998, attached hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
(i) Exhibit 99.1
Press Release dated June 26, 1998.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: July 6, 1998 DAOU SYSTEMS, INC.
By: /s/ DANIEL J. DAOU
------------------------------
Daniel J. Daou, President
<PAGE>
EXHIBIT 99.1
Contact: Chris Caramanico
Corporate Director of Marketing
800/578-3268
[email protected]
www.daou.com
DAOU SYSTEMS MERGES WITH RESOURCES IN HEALTHCARE INNOVATIONS, FURTHER
EXTENDING ITS TECHNOLOGY REACH
SAN DIEGO, June 26, 1998--DAOU Systems, Inc. (NASDAQ:DAOU) announced
today a merger with Resources in Healthcare Innovations (RHI), an information
technology services firm with a nationwide customer base of more than 150
hospitals.
RHI implements most major healthcare software systems for organizations
nationwide, including applications from such software leaders as HBO &
Company, Shared Medical Systems, IDX, Eclipsys, and Cerner.
The value of the merger is stated at $54 million and will be accounted for as
a pooling of interests merger. The addition of RHI's staff of 150 will
increase overall DAOU employment to 738.
"We believe that this merger is an important step in DAOU's transition from a
healthcare networking company to a tactical professional services firm with a
broad base of technological expertise. We look forward to exploring the
synergies between our cumulative clients," said Daniel Daou, president of
DAOU Systems, Inc.
RHI is one of the few companies that implement most major healthcare software
systems. With this merger, DAOU is now able to implement the vast majority of
applications available in today's marketplace. This enhances DAOU's ability
to provide full service, turnkey solutions to healthcare enterprises; while
assisting them in obtaining their strategic objectives.
"There is a natural cultural fit between DAOU and RHI," said Parker Hinshaw,
Chairman and CEO of RHI and a 28-year veteran of healthcare information
technology. "The services DAOU provides are complementary to our service
offerings, creating advantages for our employees as well as our clients."
Following the merger, Hinshaw and his management team will remain employed
with DAOU. Hinshaw will become the President of the new business unit,
DAOU-RHI Inc. No layoffs are expected. RHI will become a wholly-owned
subsidiary of DAOU and will continue to operate from its Indianapolis base.
DAOU Systems is a nationwide provider of integrated professional services and
technology solutions to the healthcare information technology market. DAOU
provides a full array of consulting, strategic, managerial and technical
services to the healthcare industry.
Headquartered in San Diego, DAOU operates five regional sales offices and
seven operation centers across the country. DAOU provides integrated voice,
video and Internet solutions to complement the company's strong data
networking and application background. DAOU offers one of the widest arrays
of services available to healthcare payers and providers alike.
With 738 employees, DAOU has provided services to more than 1,300 healthcare
organizations, including 50% of the nation's top 100 integrated delivery
networks.
Statements in this press release concerning DAOU Systems' and RHI's separate
or combined business outlook or future economic performances, revenues, or
other financial items, anticipated synergies and product or service line
growth, together with other statements that are not historical facts, are
forward-looking statements. Any such
<PAGE>
statements are only predictions, reflecting the best judgment of DAOU Systems
and RHI based upon currently available information and involve numerous risks
and uncertainties that could cause actual results to differ materially from
those stated in such statements. Such factors include the company and
industry risks set forth under the caption "Risk Factors" in the company's
Annual Report on Form 10-KSB for the year ended December 31, 1997. These
risks include specific acquisition-related risks, such as difficulties in the
assimilation of the operations and personnel of an acquired business, the
diversion of management's attention from other business concerns, risks of
entering markets in which DAOU has limited direct prior experience, and the
potential loss of key employees of an acquired business. The forward-looking
statements contained in this press release or in other public statements of
DAOU Systems and RHI should be considered in light of those factors.
