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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 21, 1997
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OBJECTIVE SYSTEMS INTEGRATORS, INC.
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(Exact Name of the Registrant as Specified in Its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
000-26886 68-0239619
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(Commission File Number) (I.R.S. Employer Identification No.)
100 Blue Ravine Road, Folsom, California 95630
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(Address of Principal Executive Offices) (Zip Code)
(916) 353-2400
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
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Objective Systems Integrators, Inc. (the "Company") sells its products
throughout the world to customers primarily in the telecommunications industry.
From time to time, certain of the Company's accounts receivable remain
outstanding beyond their payment terms. The Company performs periodic credit
evaluations of its customers' financial condition and maintains an allowance for
doubtful accounts receivable based upon the expected collectibility of all
accounts receivable. During the three months ended June 30, 1997, the Company
provided approximately $5.0 million additional reserves for doubtful accounts
receivable, of which approximately $2.5 million was for the potential exposure
of a single customer that is currently experiencing cash flow shortages.
In addition, on July 21, 1997, the Company issued a press release
announcing that revenues for the three months ended June 30, 1997 will be lower
than had been expected at approximately $5.0 million and projecting a net loss
for the quarter in the range of $14.0 million to $15.5 million or approximately
$0.43 to $0.47 per share. Further details regarding this announcement are
contained in the Company's press release dated July 21, 1997 attached as an
exhibit hereto and incorporated by reference herein.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits
EXHIBIT
NUMBER DESCRIPTION
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99.1 Press Release
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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 hereunto duly authorized.
Dated: July 22, 1997
OBJECTIVE SYSTEMS INTEGRATORS, INC.
By: /s/ David M. Allen
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David M. Allen
Vice President, Finance and
Administration and
Chief Financial Officer
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INDEX TO EXHIBITS
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Exhibit
Number Exhibit Title
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<C> <S>
99.1 Press Release
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EXHIBIT 99.1
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NEWS RELEASE
FOR IMMEDIATE RELEASE
For More Information, Contact:
JoAnne Martz - Director of Investor Relations - (916) 353-2567
[email protected]
OSI SAYS RESULTS FOR FOURTH QUARTER WILL BE BELOW EXPECTATIONS
Results will reflect disappointing revenues and significant expense
charges of approximately $7.0 million taken during the quarter
FOLSOM, CALIF., JULY 21, 1997 -- Objective Systems Integrators, Inc.
(Nasdaq:OSII) today announced that revenues for the fourth quarter of fiscal
1997, ended June 30, will be lower than had been expected. Revenues for the
quarter will be approximately $5.0 million, and the company currently projects a
net loss for the quarter in the range of $14.0-15.5 million, or $0.43-0.47 per
share. The net loss, which was larger that had been anticipated, resulted from
lower-than-expected revenues and certain significant charges. The company
provided approximately $5.0 million additional reserves for doubtful accounts,
of which $2.5 million related to a single customer that is experiencing cash
flow shortages. In addition, nonrecurring expenses of approximately $2.0
million were related primarily to a previously announced management
restructuring.
David M. Allen, OSI's chief financial officer, said, "While we were
disappointed that we did not achieve our revenue targets for the fourth quarter,
we were pleased that customer orders increased significantly over the third
quarter of fiscal 1997 and were significantly greater than revenues in the
quarter. This enabled the company to make substantial progress in achieving its
goal of growing backlog."
He added, "We are still optimistic about OSI's potential, as future sales
prospects look promising. We continue to believe that our NetExpert (TM)
software and related, configurable application components will meet
telecommunications service providers' growing needs for management and
operations support system solutions. In fiscal 1998, we plan to continue
building backlog. OSI has a strong balance sheet, with approximately $42.0
million in cash and investments and no debt as of June 30, 1997."
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OSI plans to release its final results for fiscal 1997 in early August.
The estimated ranges of revenues and losses discussed above depend on
finalization of the company's year-end review process.
ABOUT OSI
Objective Systems Integrators provides software that simplifies network
integration and management by enabling the object-oriented modeling of complex
networks and business processes. The company's flagship product, NetExpert (TM),
is a TMN-based framework that provides a distributable base for easily
customized applications using programmerless expert rules. This approach greatly
reduces time to market for OSI customers who need to integrate emerging
technologies and quickly generate revenue with new services. Headquartered in
Folsom, Calif., OSI has offices throughout the United States and in Asia, the
Pacific Rim, and Europe.
Facsimile copies of company news releases may be obtained by calling
Company News On Call (800-758-5804--623-150 for OSI). Other investor relations
literature and information may be obtained by calling 800-741-1069.
OSI's home page on the World Wide Web is:http://www.osi.com/
NOTICE TO READERS
This news release contains forward-looking statements that are based on
current expectations. A wide variety of risks and uncertainties could cause
actual results to differ materially. These include, but are not limited to, the
growth rate of the communications industry and the related requirement for
Operations Support Systems (OSSs) and network management systems, as well as
OSI's continued ability to develop and successfully market new solutions for
that global marketplace. Additional risks are described in the company's SEC
report on Form 10-K for the year ended June 30, 1996, and Forms 10-Q for the
quarterly periods ended September 30 and December 31, 1996, and March 31, 1997.
These documents are available upon request to the Company's Investor Relations
Department and are posted on the company's home page on the World Wide Web in
the Investor Relations section.
