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SEC File Number
SECURITIES AND EXCHANGE COMMISSION 001-14198
Washington, D.C. 20549 ----------
Cusip Number
FORM 12b-25 25387N 10 9
NOTIFICATION OF LATE FILING
(Check One) [X]Form 10-K and Form 10-KSB [ ]Form 20-F [ ]Form 11-K [ ]Form
10-Q and Form 10-QSB [ ]Form N-SAR
For Period Ended: June 30, 1998
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[ ] Transition Report on Form 10-K
[ ] Transition Report on Form 20-F
[ ] Transition Report on Form 11-K
[ ] Transition Report on Form 10-Q
[ ] Transition Report on Form N-SAR
For the Transition Period Ended:
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READ ATTACHED INSTRUCTION SHEET BEFORE PREPARING FORM. PLEASE PRINT OR TYPE
Nothing in the form shall be construed to imply that the Commission has
verified any information contained herein.
If the notification relates to a portion of the filing checked above,
identify the Item(s) to which the notification relates:
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PART I
REGISTRANT INFORMATION
Digital Transmission Systems, Inc.
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Full Name of Registrant
Not Applicable
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Former Name if Applicable
3000 Northwoods Parkway, Building 330
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Address of Principal Executive Office (STREET AND NUMBER)
Norcross, Georgia 30071
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City, State and Zip Code
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PART II
RULES 12b-25(b) and (c)
If the subject report could not be filed without unreasonable effort or expense
and the registrant seeks relief pursuant to Rule 12b-25(b), the following
should be completed. (Check appropriate box)
[X] (a) The reasons described in reasonable detail in Part III of this
form could not be eliminated without unreasonable effort or
expense;
[X] (b) The subject annual report, semi-annual report, transition
report on Form 10-K, Form 20-F, 11-K, Form N-SAR, or portion
thereof, will be filed on or before the fifteenth calendar day
following the prescribed due date; or the subject quarterly
report or transition report on Form 10-Q, or portion thereof,
will be filed on or before the fifth calendar day following
the prescribed due date; and
[ ] (c) The accountant's statement or other exhibit required by Rule
12b-25(c) has been attached if applicable.
PART III
NARRATIVE
State below in reasonable detail the reasons why the Form 10-K and 10-KSB,
11-K, 20-F, 10-Q, and Form 10-QSB, N-SAR, or the transition report or portion
thereof, could not be filed within the prescribed time period. (Attach extra
sheets if needed)
Since the end of the Company's 1998 fiscal year, the Company has made certain
changes in management which have caused the Company to review certain
financial information provided in the audit process for fiscal year 1998. As a
result of this review, the Company has been unable to provide certain
financial information which the Company believes to be in final form to its
independent accountants in a timely manner without unreasonable effort or
expense. The Company is engaged in ongoing discussions with its independent
accountants with respect to the results of operations for fiscal year 1998 and
the proposed audit adjustments therein. The Company continues to work closely
with the independent accountants to finalize the Company's 1998 audit. The
Company intends to complete this process and file its Form 10-K within 15
calendar days of its due date.
PART IV
OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to this
notification
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Clive N.W. Marsh (770) 798-1300
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(Name) (Area Code) (Telephone Number)
(2) Have all other periodic reports required under Section 13 or 15(d) of
the Securities Exchange Act of 1934 or Section 30 of the Investment
Company Act of 1940 during the preceding 12 months or for such shorter
period that the registrant was required to file such report(s) been
filed? If the answer is no, identify report(s).
[X] Yes [ ] No
(3) Is it anticipated that any significant change in results of operations
from the corresponding period for the last fiscal year will be
reflected by the earnings statements to be included in the subject
report or portion thereof? [X] Yes [ ] No
If so, attach an explanation of the anticipated change, both
narratively and quantitatively, and, if appropriate, state the reasons
why a reasonable estimate of the results cannot be made:
Net sales increased by 13%, to $16,396,000 for the year ended June 30, 1998,
from $14,484,000 for the year ended June 30, 1997. Gross profit decreased 9%,
to $4,225,000 for the year ended June 30, 1998 from $4,639,000 for the year
ended June 30, 1997. This decrease is due to a lower margin product mix (i.e.
increased sales of lower margin products) during 1998 over 1997. The net loss
increased from $4,190,000 for the year ended June 30, 1997 to a loss of
$7,036,000 for the year ended June 30, 1998. This increase resulted primarily
from the shift in product mix to a lower margin products, as well as increased
spending in sales and marketing and general and administrative expenses.
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DIGITAL TRANSMISSION SYSTEMS, INC.
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(Name of registrant as specified in charter)
has caused this notification to be signed on its behalf by the undersigned
thereunto duly authorized.
Date September 29, 1998 By /s/ Clive N. W. Marsh
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Controller
