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): April 28, 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 April 28, Data Systems Network Corporation issued a press release
announcing certain matters, including that the company had completed its
search for a permanent Chief Financial Officer and that it expected its 1997
audit to be completed within the next few weeks. The press release is
attached hereto as Exhibits 99.1, and incorporated herein by reference.
ITEM 7: FINANCIAL STATEMENTS AND EXHIBITS
Exhibit 99.1 Press Release, dated April 28, 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.
May 7, 1998 DATA SYSTEMS NETWORK CORPORATION
By: /s/ Michael W. Grieves
----------------------------------
Michael W. Grieves
Chairman, President and Chief
Executive Officer
Exhibit 99.1
April 28, 1998
Data Systems Network Corporation Completes
Search for New CFO
FARMINGTON HILLS, MICHIGAN--Data Systems Network Corporation (Nasdaq: DSYSE;
Pacific Stock Exchange: DSY) has announced that it has completed its search
for a permanent Chief Financial Officer, who is in the process of finishing
his current assignment. The company expects to make a formal announcement
in mid-May on the appointment. This new appointment has replaced the
current interim CFO.
Data Systems also announced that:
- - The 1997 audit is expected to be completed within the next few
weeks. The work had been delayed due to the replacement of the
company's previous auditors. The Company is taking every action to
complete the audit as quickly as possible in order to comply with
all regulatory compliance issues. The Company has taken write downs
of nearly all of its inventory and spare parts carried on the
Company's books, and it has significantly increased other reserves
and allowances, resulting in a substantial loss for 1997. The
Company, in consultation with its auditors, Plante Moran, will
determine whether to reflect the charges in 1996 or 1997.
- - Plante Moran has helped the Company detect a problem with product
costing in the accounting system. The Company is addressing the
problem with additional manual controls until the problem can be
fully identified and resolved. It is unlikely that any problem with
the Company's accounting system would have any material effect on
revenues.
Michael W. Grieves, President and CEO of Data Systems Network Corporation
also commented on the effect that the recent events would have on first
quarter 1998 results. "While the Company expects first quarter revenues of
1998 to be greater than first quarter of 1997, we anticipate revenues to be
below forecasts due mainly to the significant amount of focus spent on
correcting the recently announced problems. The Company will also report a
significant increase in backlog over the same period last year. In
addition, certain cost structures, including staffing, were based on higher
revenues and those costs will impact the first quarter as a loss. The
Company has taken steps to reduce its costs and has gone into the second
quarter with a significant backlog of business that was unable to be
realized in first quarter."
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, imaging systems and Year 2000 consulting. Based in Farmington
Hills, Michigan, Data Systems has 21 offices.
Certain statements in this release including those relating to the timing of
completion of the 1997 audit, the effect of the accounting system problem
and projected results for the first quarter of 1998 constitute "forward
looking statements" within the meaning of the federal securities laws and
are subject to a number of risks and uncertainties. These risks and
uncertainties include the time necessary to complete the 1997 audit, the
duration and scope of the review of the accounting system concerns and the
extent and timing of revenues and costs attributable to the first quarter of
1998 or any additional factors described in the Company's reports filed with
Securities and Exchange Commission.
For additional information contact:
Gabe Werba, Durocher, Dixon and Werba
313-259-4947
or
Barbara Hauswirth, Data Systems Network Corporation
800-544-2086
