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): October 23, 1998
Data Systems Network Corporation
(Exact name of registrant as specified in its charter)
Michigan
(State or other jurisdiction of incorporation)
1-13424 38-2649874
(Commission File Number) (IRS Employer Identification No.)
34705 West Twelve Mile Road, Suite 300, Farmington Hills, Michigan 48331
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (248) 489-8700
Not Applicable
(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS.
On October 23, 1998, Data Systems Network Corporation (the
"Company") issued a press release announcing (i) that it is conducting a
search for a new auditing firm and (ii) that the Nasdaq Listing and Hearing
Review Council notified the Company that it has affirmed the June 24, 1998
decision of the Nasdaq Qualifications Hearing Panel to de-list the Company.
On October 26, 1998, the Company issued a press release announcing that it
has been named as a Computer Associates Unicenter TNG Value Added Reseller
and secured a contract valued at over $2 million with the Michigan
Department of Corrections. The press releases are attached hereto as
Exhibits 99.1 and 99.2, and incorporated herein by reference.
ITEM 7: FINANCIAL STATEMENTS AND EXHIBITS
Exhibit 99.1 Press Release, dated October 23, 1998
Exhibit 99.2 Press Release, dated October 26, 1998
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.
November 3, 1998 DATA SYSTEMS NETWORK CORPORATION
By: /s/ Michael W. Grieves
-----------------------------------
Michael W. Grieves
Chairman, President and Chief
Executive Officer
Exhibit 99.1
October 23, 1998
Data Systems Network Corporation Announces
Status of Recent Events
FARMINGTON HILLS, MICHIGAN - Data Systems Network Corporation (OTC:DSYS)
announced today that it is conducting a search for a new auditing firm to
replace Plante and Moran, LLP. The Company also announced that the Nasdaq
Listing and Hearing Review Council notified the Company that it has affirmed
the June 24, 1998 decision of the Nasdaq Qualifications Hearing Panel to de-
list the Company, based on the Company's inability to meet listing
requirements.
"We have already begun to contact other accountants in search of a firm
prepared to assist the Company with its long term plans," Vice President and
CFO John O. Lychos Jr. said. The Auditors told the Company that if asked,
they would decline re-appointment for the 1998 audit. Mr. Lychos added, "We
understand that the audit of 1996 and 1997 was a huge undertaking,
especially given the difficult circumstances at the beginning of the year.
Plante's efforts were appreciated, but this gives us the opportunity to take
some time to search for a long term partner best suited to assist DSNC."
Regarding the Nasdaq decision, Michael W. Grieves, Chairman, President and
CEO said, "We are disappointed with Nasdaq's decision, however, we were not
surprised by their final ruling. When this fiscal year ends and the results
have been audited, we will have three consecutive years of audited financial
statements and will pursue our Company's listing options, either with Nasdaq
or another exchange."
Data Systems provides computer network services and products that enable the
control of complex distributed computing environments and allow companies to
capitalize on their investments in technology and people. The company
provides a wide range of network integration services including
installation, consultation, technical support and training. It also
provides specialized services in network management, application
development, integrated document management systems and Year 2000
consulting. Based in Farmington Hills, Michigan, Data Systems has 16
offices and more than 230 employees.
-0-
For additional information contact
Barbara Hauswirth, Director of Marketing
800-544-2086
Certain statements in this release constitute "forward looking statements"
within the meaning of the federal securities laws. Such statements involve
known and unknown risks and uncertainties, which may cause the company's
actual results, performance or achievements to be materially different than
any future results, performance or achievements implied in this release.
Investors are cautioned that all forward-looking statements involve risks
and uncertainty.
Exhibit 99.2
October 26, 1998
Data Systems Network Corporation Signs On
As Computer Associates Channel Partner and
Closes First Contract
FARMINGTON HILLS, MICHIGAN -- Data Systems Network Corporation (OTC: DSYS)
has been named as a Computer Associates (CA) Unicenter TNG Value Added
Reseller and secured a contract valued at over $2 million dollars with the
Michigan Department of Corrections (MDOC).
The contract involves installing and implementing Computer Associates
Unicenter TNG Framework Enhanced Enterprise Management application on MDOC's
200 servers and 7,000 workstations.
"One of the key deliverables to the State is the ability to rollout patches
and fixes to MDOC's remote locations, replacing the time and expense of
manually making those changes at each MDOC location. With Unicenter TNG and
Unicenter Asset Management, MDOC will have the tools to know exactly what is
connected to their network. Previously they could attain this information
only by visiting the site," said Greg Cocke, Vice President of Sales for
Data Systems Network Corporation.
Data Systems, as an authorized CA business partner, can now provide its
customers comprehensive consulting, customization, installation and support
services for CA's end to end enterprise management solution.
Data Systems provides computer network services and products that enable the
control of complex distributed computing environments and allow companies to
capitalize on their investments in technology and people. The company
provides a wide range of network integration services including
installation, consultation, technical support and training. It also
provides specialized services in network management, application
development, enterprise document management and Year 2000 consulting. Based
on Farmington Hills, Michigan, Data Systems has 16 offices and more than 230
employees.
-0-
For additional information contact
Barbara Hauswirth, Director of Marketing
800-544-2086
The statements made above with respect to Data Systems' expectations of
revenues from this contract are "forward looking statements" within the
meaning of the Securities Exchange Act of 1934 and are subject to a number
of risks and uncertainties. These include general business and economic
conditions, the actual need of this customer for the Company's products and
services, the ability of the Company to successfully meet all of the
requirements of this project and the relative uncertainties in the market
direction of emerging technologies.
