U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 12b-25
NOTIFICATION OF LATE FILING
SEC File Number
0-22991
CUSIP Number
64121L 10 3
[x] Form 10-KSB
For Period Ended: Fiscal Year Ended September 30, 1999
Nothing in this 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: N/A
Part I - Registrant Information
Full Name of Registrant Network Systems International, Inc.
200 N. Elm Street
(Address of Principal Executive Office)
Greensboro, NC 27401
(City, State and Zip Code)
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 box if appropriate)
[ ](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-KSB, Form 20-
F, 11-K or 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 12-b25(c) has been attached if
applicable.
Part III - Narrative
Stated below is the reason why Form 10KSB could not be filed
within the prescribed period:
In late November, the Registrant's Chief Financial
Officer ("CFO"), the key member of the Registrant's limited
accounting staff, suffered an unexpected illness. This
illness caused the CFO to be absent from work for three
weeks. The CFO's absence significantly delayed preparation
of the Registrant's financial statements, and delayed the
preparation of data needed by the Registrant's auditors for
completion of the audit. This delay could not be eliminated
without unreasonable effort or expense.
Part IV - Other Information
(1) Name and telephone number of person to contact in
regard to this notification is Michael Spohn (336) 271-8400.
(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.
Operating results for the 1999 fiscal year are
anticipated to show net income of $584,356, compared to net
income of $1,967,078 for the 1998 fiscal year. The decrease
in net income is attributable to the significant one-time
charges incurred in the third quarter that is discussed in
our 10-Q filing for the third quarter. Additionally, the
software industry as a whole, including the Company,
experienced a temporary slowdown in demand for software and
hardware as the Company's customers and prospects have
focused on their Year 2000 readiness and deferred purchases
until year 2000.
Network Systems International, Inc. has caused this
notification to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: December 29, 1999
By: /s/ Michael Spohn
Michael Spohn, CFO
