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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to section 13 of 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 16, 1998
NETWORK SIX, INC.
(Exact name of registrant as specified in its charter)
Commission File No. 0-21038
Rhode Island 05-036-6090
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
475 Kilvert Street, Warwick, Rhode Island 02886
(Address of principal executive offices, including zip code)
(401) 732-9000
(Registrant's telephone number, including area code)
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Item 5. Other Events
The March 16, 1998 Press Release of the Registrant attached hereto as
EXHIBIT 99 is incorporated herein by reference.
Item 7 (c). Exhibits
99 Press Release, dated March 16, 1998, of Network Six, Inc.
SIGNATURES
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 thereunto duly authorized.
Network Six, Inc.
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(Registrant)
Date: March 18, 1998 By: /s/ Dorothy M. Cipolla
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Dorothy M. Cipolla
Chief Financial Officer
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Network Six, Inc.
Current Report on Form 8-K
Dated February 2, 1998
Exhibit Index
Exhibit
No. Exhibits
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99 Press Release dated March 16, 1998
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EXHIBIT 99
NETWORK SIX REPORTS
YEAR END RESULTS
Kenneth C. Kirsch, President and CEO
or
Dorothy M. Cipolla, CFO and Treasurer
March 16, 1998
Network Six, Inc. of Warwick, RI announced today its year-end results for 1997.
Revenues for the year were $11.5 million, up 56% from the previous year's level
of $7.3 million. Net income of $406,950 in 1997 was an improvement of $2.17
million from 1996's loss of $1.76 million. Earnings per diluted share in 1997
were $.25 compared to a loss of $2.71 per diluted share in 1996.
Kenneth C. Kirsch, Network Six's President and CEO commented, "We are very
pleased with our results for 1997. We substantially increased our revenues and
returned the company to profitability. We paid off our bank line completely and
replaced it with a new $1.5 million credit facility, which we have yet to tap.
Two projects accounted for the lion's share of our revenues for 1997: upgrading
the InRHODES integrated information system for the State of Rhode Island,
Department of Human Services, and implementing an automated child welfare system
for the State of Maine. Both projects are proceeding very well. As a result of
the enactment of federal welfare reform legislation, many changes are required
to the Rhode Island system where our contract was increased considerably from
its original level. The Maine project is on schedule and on budget and will be
one of the premier child welfare systems nationally when completed.
We added several private sector customers, such as GTECH Corporation and MIM
Corporation, to our business base and expect to grow these accounts as well as
augment them with other new
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business opportunities. Our newly formed Network Services Division, moreover,
met all of its internal targets for 1997.
Like many companies in the information technology industry, we are benefiting
from a strong economy and a pent-up demand for automation. As long as this trend
continues, we believe we are well-positioned to capitalize on it."
* * * * * * * * * * * * * * * * * * * * * * * * *
Network Six is a systems integrator for state health and human service agencies,
providing information technology that enables states to become more efficient
and effective. Network Six's systems encompass Health Care, Welfare, Child
Welfare, Child Support Enforcement, Child Care, JOBS, and Medicaid Eligibility
programs. Network Six also provides network and information technology services
to the public and private sector. Network Six's stock is traded on the NASDAQ
National Market under the symbol NWSS. Its website is www.networksix.com.
The following is a recap of Network Six's operating results:
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NETWORK SIX, INC.
Statements of Operations
Years ended December 31, 1997, 1996 and 1995
<TABLE>
<CAPTION>
1997 1996 1995
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<S> <C> <C> <C>
Contract revenue earned $11,460,437 $ 7,344,380 $20,985,012
Cost of revenue earned 8,620,097 7,359,649 19,299,944
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Gross profit (loss) 2,840,340 (15,269) 1,685,068
Selling, general & administrative expenses 2,071,294 2,240,073 4,369,260
Research & development expense - - 185,235
Restructuring - (119,436) 537,221
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Income from operations 769,046 (2,135,906) (3,406,648)
Other deductions (income)
Interest expense 266,030 435,925 396,286
Interest earned (31,934) (38,463) (10,413)
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Income before income taxes 534,950 (2,533,368) (3,792,521)
Income taxes 128,000 (775,023) (1,365,081)
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Net income $ 406,950 $(1,758,345) $(2,427,440)
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Net income (loss) per share:
Basic $0.25 $(2.71) $(3.68)
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Diluted $0.25 $(2.71) $(3.68)
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Shares used in computing net income per share:
Basic 729,927 719,317 709,841
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Diluted 729,927 719,317 709,841
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Preferred dividends declared $ 225,308 $ 187,500 $ 187,500
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</TABLE>
