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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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) February 19, 1998
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MDSI MOBILE DATA SOLUTIONS INC.
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(Exact name of registrant as specified in its charter)
Canada
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(State or other jurisdiction of incorporation)
0-28968 Not applicable
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(Commission File Number) (IRS Employer Identification No.)
135-10551 Shellbridge Way
Richmond, British Columbia, Canada V6X 2W9
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (604) 270-9939
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
On February 19, 1998 the Registrant issued a press release
announcing that it expects earnings for the first quarter ended March 31, 1998
to be below analysts' expectations due to delays in the signing of certain
contracts.
(c) Exhibits.
99.1 Press Release issued February 19, 1998.
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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.
MDSI MOBILE DATA SOLUTIONS INC..
March 5, 1998 By /s/ Erik Dysthe
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Date Erik Dysthe,
Chief Executive Officer
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EXHIBIT INDEX
Exhibit
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99.1 Press Release issued February 19, 1998
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[MDSI LOGO] EXHIBIT 99.1
FOR IMMEDIATE RELEASE
NEWS RELEASE
MDSI DISCUSSES FIRST QUARTER OUTLOOK
Richmond, BC, February 19, 1998 -- MDSI Mobile Data Solutions Inc. (Nasdaq:
MDSIF; TSE, ME: MMD) announced today that it expects earnings for the first
quarter ended March 31, 1998 to be below analysts' expectations due to delays in
the signing of certain contracts. The Company now anticipates that first quarter
earnings will range from $0.00 per share to $0.10 per share. The delays in
signing these contracts have impacted the ability of the Company to commence
work as planned and as a result, the Company anticipates that it will not
recognize significant revenue on these contracts during the first quarter.
While there can be no assurance that the Company will enter into each of these
contracts, the Company believes that revenues associated with such contracts
will be recognized in future quarters.
Said Ken Miller, President of MDSI, "We continue to believe the fundamentals of
our business are strong and that MDSI is well positioned to take advantage of
the opportunities in our markets. Our customers are typically large companies in
the utility, telephone, cable, public safety, field service, taxi and delivery
markets worldwide and over the last several months we have experienced an
increase in the time necessary to complete the negotiation and signing of
certain contracts with some of these large customers. MDSI is generally selected
by these customers through a competitive bidding process. Under the Company's
revenue recognition policy, contract revenues for software and services are
recognized on a percentage of completion basis and therefore delays in
initiating work on contracts will delay the recognition of revenues."
This release contains forward-looking statements which are made under the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995 and
involve a number of risks and uncertainties that could materially affect future
results. Among these risk factors are dependence on large contracts and
concentration of customers, integration of acquisitions, potential fluctuations
in quarterly operating results, and the management of growth. In addition, the
expected financial results contained in this press release are preliminary and
the Company has not yet finalized its financial results for the quarter. Further
information regarding these and other key risk factors which could affect the
Company's financial results are included in the Company's Form 10-K for its
fiscal year ended December 31, 1996, filed with the SEC.
The Company will report its results for the first quarter ended March 31, 1998
during the week of April 27, 1998.
MDSI is a leading provider of mobile data solutions for the management of
mobile workforces to companies seeking to improve their competitive edge.
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For further information contact: R#-.98.02.04
Nancy McLeod, Investor Relations MDSI Mobile Data Solutions Inc.
Ph: (604) 270-9939 Fax: (604) 270-1310 web site: www.mdsi-advantex.com
Shareholders' Line: 800-665-4789
