SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): March 6, 1997
Effective Management Systems, Inc.
(Exact name of registrant as specified in its charter)
Wisconsin 0-23438 39-1292200
(State or other (Commission File Number) IRS Employer
jurisdiction of Identification No.)
incorporation)
12000 West Park Place, Milwaukee, Wisconsin 53224
(Address of principal executive offices including zip code)
(414) 359-9800
(Registrant's telephone number)
<PAGE>
Item 5. Other Events.
Effective Management Systems, Inc. (NASDAQ: EMSI, EMSIW)
disclosed, on March 6, 1997, that it expects to report an estimated net
loss of $750,000 to $950,000, or 19 cents to 24 cents a share, for the
fiscal first quarter ended February 28, primarily reflecting a delay in
the finalization of a major contract.
EMS continues to expect successful closure of the contract, with
a Fortune 500 manufacturer, during the second quarter ending May 31. The
company also may initiate other specific measures to help improve the
profitability of the current quarter.
The delay in the finalization of this contract, plus some
softness in new-account sales, however, mean that first-quarter revenues
and net results will fall short of initial internal projections.
This filing includes forward-looking statements regarding the
company's expectations of its first quarter financial results and of
closing successfully the contract referenced above. These statements are
subject to certain risks and uncertainties which could cause the actual
results to differ materially from those currently anticipated. Factors
which could affect the actual results include, among others, final
calculation of the first quarter results as well as decisions which the
potential manufacturing customer may make regarding the timing and impact
of the company's product to support the customer's strategic plan. These
factors should be considered in evaluating the forward-looking statements
because no assurance can be given that the actual financial results will
be within the projected range or that the contract ultimately will be
closed.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits
(a) Not applicable.
(b) Not applicable.
(c) Exhibits. The following exhibit is being filed herewith:
(99.1) Press Release, dated March 6, 1997.
<PAGE>
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.
EFFECTIVE MANAGEMENT
SYSTEMS, INC.
(Registrant)
Dated: March 14, 1997 By: /s/ Jeffrey J. Fossum
Jeffrey J. Fossum
Chief Financial Officer &
Assistant Treasurer
(Principal Financial and
Accounting Officer)
<PAGE>
EFFECTIVE MANAGEMENT SYSTEMS, INC.
EXHIBIT INDEX TO FORM 8-K
Exhibit
(99.1) Press Release, dated March 6, 1997
Exhibit 99.1
FOR IMMEDIATE RELEASE 8 a.m. EST, Thursday, March 6, 1997
EMS EXPECTS FIRST-QUARTER NET LOSS DUE TO DELAY IN CONTRACT FINALIZATION
Milwaukee -- Effective Management Systems, Inc. (NASDAQ: EMSI,
EMSIW), the first provider of pre-integrated manufacturing software,
disclosed that it expects to report an estimated net loss of $750,000 to
$950,000, or 19 cents to 24 cents a share, for the fiscal first quarter
ended February 28, primarily reflecting a delay in the finalization of a
major contract.
EMS continues to expect successful closure of the contract, with
a Fortune 500 manufacturer, during the second quarter ending May 31. The
company also may initiate other specific measures to help improve the
profitability of the current quarter.
The delay in the finalization of this contract, plus some
softness in new-account sales, however, mean that first-quarter revenues
and net results will fall short of initial internal projections.
"Our plan for the quarter was predicated on the release of this
important order, to which we have devoted considerable resources during
the last two years," says Michael D. Dunham, president and chief executive
officer of EMS. "Efforts to secure large contracts like this one are part
of our strategy for growing the company, but the vagaries of dealing with
such crucial individual pieces of business sometimes can cause
significant, unanticipated adverse impacts. Unfortunately, that's what
happened here."
"Yet this tactical setback underscores a broader positive
reality: By doubling our revenues and significantly broadening our
capabilities in the last three years, EMS has elevated itself to the next
level in the manufacturing-software business."
EMS's pre-integrated TCM and FACTORYnet I/S software supports
management of manufacturing operations in discrete-manufacturing plants in
the U.S., Asia and Europe.
This press release includes forward-looking statements regarding
the company's expectations of its first quarter financial results and of
closing successfully the contract referenced above. These statements are
subject to certain risks and uncertainties which could cause the actual
results to differ materially from those currently anticipated.
Factors which could affect the actual results include, among
others, final calculation of the first quarter results as well as
decisions which the potential manufacturing customer may make regarding
the timing and impact of EMS's product to support the customer's strategic
plan. These factors should be considered in evaluating the forward-
looking statements because no assurance can be given that the actual
financial results will be within the projected range or that the contract
ultimately will be closed.
For more information, contact Dale Buss, for EMS, at 810/359/9800.
