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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported) May 29, 1998
Commission File Number 0-25104
CONTINENTAL INFORMATION SYSTEMS
CORPORATION
(Exact name of registrant)
New York 16-0956508
(State of incorporation) (I.R.S. Employer
Identification Number)
One Northern Concourse, P.O. Box 4785, Syracuse, New York 13221-4785
(Address of principal executive offices and zip code)
(315) 455-1900
(Registrant's telephone number)
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ITEM 5. OTHER EVENTS
Continental Information Systems Corporation incorporates
herein by reference the information contained in the press release filed as
Exhibit 99 to this Current Report.
ITEM 7. EXHIBITS
Sequentially
Exhibit No. Numbered Page
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99 Press Release by Continental
Information Systems Corporation
dated May 29, 1998, announcing
discontinuance of Laser Printing
Business and fourth quarter charge 4
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<PAGE>
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.
CONTINENTAL INFORMATION SYSTEMS
CORPORATION
BY: /s/ Jonah M. Meer
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Jonah M. Meer
Senior Vice President,
Chief Operating Officer,
and Chief Financial Officer
Dated: May 29, 1998
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Exhibit 99
For Further Information Contact:
Jonah M. Meer
Chief Operating Officer and Chief Financial Officer
(212) 771-1000
FOR IMMEDIATE RELEASE
CONTINENTAL INFORMATION SYSTEMS CORPORATION
ANNOUNCES DISCONTINUANCE OF ITS LASER PRINTING BUSINESS UNIT
NEW YORK, NY, May 29, 1998 -- Continental Information Systems Corporation
(NASDAQ: CISC) announced that its Board of Directors has decided to discontinue
and liquidate the Company's LaserAccess laser printing business. The Board
concluded that the printing business was unlikely to be able to operate
profitably in the foreseeable future. The Company also decided not to pursue a
previously announced joint venture with another company in the laser printing
business. The Company concluded after additional review that the venture, which
would require a substantial infusion of capital from CIS, would not generate
returns sufficient to justify the additional capital.
"We have spent the last year attempting to develop alternatives that would
enable us to restore our laser printing business to profitability and continue
it as a going concern," said Jonah Meer, Chief Operating Officer and Chief
Financial Officer. "Unfortunately, no viable alternative has emerged, and
management decided that the best course was to close the business rather than
putting in more capital. Closing this ancillary business will enable management
to focus fully on the Company's core businesses."
The Company expects to take a charge in the quarter ending May 31, 1998, related
to the discontinuance of the laser printing business. The charge is currently
estimated at approximately $4 million, primarily consisting of the write-off of
goodwill.
Mr. Meer added, "Regrettably, former LaserAccess management, from whom the
Company purchased the business, failed to deliver the return on our investment
that we hoped for. We will continue to pursue our legal remedies against the
former managers."
Continental Information Systems Corporation is engaged in buying and selling
commercial aircraft and engines, high-speed production laser printing systems
and certain other industrial equipment, in addition to providing real estate
financing and leasing services.
This press release contains forward looking statements that involve risks and
uncertainties. The actual results may differ significantly from those currently
anticipated. Among the factors that could cause actual results to differ
materially are those set forth above and the other risk factors described from
time to time in the Company's reports filed with the SEC. The Company wishes to
caution readers not to place undue reliance on any such forward looking
statements, which statements are made pursuant to the Private Securities
Litigation Reform Act of 1995 and, as such, speak only as of the date made.
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