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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): JULY 20, 1998
CITATION COMPUTER SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
MISSOURI 0-20284 43-1174397
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
424 S. WOODS MILL ROAD, SUITE 200, ST. LOUIS, MISSOURI 63017
(Address of principal executive offices, Zip Code)
Registrant's telephone number, including area code: (314) 579-7900
NOT APPLICABLE
(Former name or former address, if changed since last report.)
Form 8-K Page 1
CITATION Computer Systems, Inc.
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ITEM 5. OTHER EVENTS
On July 20, 1998, Registrant issued a Press Release, a copy of which is
included herewith as EXHIBIT 99.1, announcing its results of operations for the
three months ended June 30, 1998.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
Exhibit No. Description
99.1 Text of Press Release, dated July 20, 1998, issued by CITATION
Computer Systems, Inc.
Form 8-K Page 2
CITATION Computer Systems, Inc.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CITATION COMPUTER SYSTEMS, INC.
By /s/ Richard D. Neece
-----------------------------
Richard D. Neece, President
Date: July 29, 1998
Form 8-K Page 3
CITATION Computer Systems, Inc.
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EXHIBIT INDEX
Exhibit No. Description
99.1 Text of Press Release, dated July 20, 1998, issued by CITATION
Computer Systems, Inc.
Form 8-K Page 4
CITATION Computer Systems, Inc.
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EXHIBIT 99.1
- --------------------------------------------------------------------------------
The Best Information Systems Value in Healthcare! CITATION (R)
NEWSRELEASE
FOR MORE INFORMATION CONTACT:
Rick Neece, CITATION 314/579-7900
Ned Maniscalco for CITATION 314/982-1700
FOR IMMEDIATE RELEASE
CITATION COMPUTER SYSTEMS REPORTS FIRST-QUARTER RESULTS
ST. LOUIS, JULY 20,1998--CITATION Computer Systems, Inc. (NASDAQ; CITA)
today announced first-quarter results for its 1999 fiscal year.
For its fiscal first quarter, which ended June 30, 1998, CITATION reported
a loss of $0.03 a share, compared with a loss of $0.04 per share for the first
quarter of the prior year. Of the current-year per-share loss, $0.02 resulted
from ongoing operations. The remaining loss of $0.0l per share was attributable
to the sale of CITATION's financial systems business.
J. Robert Copper, CITATION's chairman and chief executive officer,
stated, "While we are obviously not pleased with our first-quarter results, we
believe that we made strategic progress with the sale of our financial systems
business and the potential business combination with MEDASYS Digital Systems,
which will allow us to focus on our core clinical business. In addition, the
first customers for our new Windows NT(R) products, C-COM (communications and
clinical data base system) and C-LAB (laboratory information system), received
shipments of those products at the end of the quarter.
"Because C-COM and C-LAB shipped late in the quarter, we didn't see their
impact on quarterly earnings," Copper said. "Going forward, though we expect
these products to make a positive contribution."
Revenues for the first quarter of fiscal 1998 totaled $3.4 million,
compared with $4.3 million for the same period last year. The decline in
revenues was principally in system sales, which declined by $800,000. The
company noted that revenues were affected both by the sale of the financial
systems business and by customers waiting for new products to become available
before making purchasing decisions.
-more-
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CITATION Computer Systems, Inc.
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Strong cost control programs resulted in generally reduced expenses in the
first quarter of the current year when compared with the same period a year
ago, keeping the operating loss down. In particular, selling and
administrative expense was down more than 29 percent from the year-ago
quarter.
Copper also noted that CITATION's discussions with MEDASYS Digital
Systems about a business combination are continuing and that both companies
are optimistic that they will complete the transaction. He added that
combining companies on two continents, as well as preparing for dual listings
on the Paris and NASDAQ stock exchanges, is a complex and time-consuming
process.
CITATION Computer Systems, Inc. is a provider of client/server clinical
and managed care systems for the healthcare enterprise. CITATION's clinical
and managed care systems are found in approximately 370 healthcare facilities
throughout the United States, Canada, the United Kingdom, Ireland,
Asia-Pacific, and other countries.
The preceding discussions of expected future results constitute
forward-looking statements. Actual results could differ from expected results
due to various factors, including whether final costs exceed estimates and
other factors discussed in company filings with the Securities and Exchange
Commission.
CITATION--THE BEST INFORMATION SYSTEMS VALUE IN HEALTHCARE
(Table attached)
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CITATION Computer Systems, Inc.
Page Three
CITATION Computer Systems, Inc.
Condensed Summary of Operations
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
------------------
(unaudited)
6/30/98 6/30/97
------- -------
<S> <C> <C>
Net system sales and service revenues:
System sales $1,336 $2,178
Service revenue 2,078 2,104
------- -------
Total revenues 3,414 4,282
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Cost of products and services sold:
System costs 1,052 1,748
Service costs 661 419
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Total cost of products and services sold 1,713 2,167
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Gross profit 1,701 2,115
Research and development 602 532
Selling and administrative expense 1,263 1,789
Loss on sale of Financial products 70 -
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Operating loss (234) (206)
Other income (expense) 25 (41)
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Loss before income taxes (209) (247)
Benefit for income taxes (79) (94)
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Net loss $ (130) $ (153)
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Net loss per share - basic and diluted $ (0.03) $ (0.04)
======= =======
Weighted average shares outstanding -
Basic and diluted 3,811 3,803
======= =======
</TABLE>
