-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 CDsv1/gjg7WHI5cqxupaSHE4419AgHQhZA8Is854L7acfmofZGWXdu2h1TYJrqfu
 7THIxJdJNkIfsImaqoaS2w==

<SEC-DOCUMENT>0001181431-03-013611.txt : 20030710
<SEC-HEADER>0001181431-03-013611.hdr.sgml : 20030710
<ACCEPTANCE-DATETIME>20030710135744
ACCESSION NUMBER:		0001181431-03-013611
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030709
FILED AS OF DATE:		20030710

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DAOU SYSTEMS INC
		CENTRAL INDEX KEY:			0001003989
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-RETAIL STORES, NEC [5990]
		IRS NUMBER:				330284454
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		5120 SHOREHAM PL
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92122
		BUSINESS PHONE:		8584522221

	MAIL ADDRESS:	
		STREET 1:		5120 SHOREHAM PL
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92122

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MALCOLM DANIEL J
		CENTRAL INDEX KEY:			0001249853

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-22073
		FILM NUMBER:		03781642

	BUSINESS ADDRESS:	
		STREET 1:		DAOU SYSTEMS INC
		STREET 2:		412 CREAMERY WAY STE 300
		CITY:			EXTON
		STATE:			PA
		ZIP:			19341
		BUSINESS PHONE:		6109682202

	MAIL ADDRESS:	
		STREET 1:		DAOU SYSTEMS INC
		STREET 2:		412 CREAMERY WAY STE 300
		CITY:			EXTON
		STATE:			PA
		ZIP:			19341
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd12819.xml
<DESCRIPTION>FORM 4 FOR DANIEL J MALCOLM
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>
    <schemaVersion>X0101</schemaVersion>

    <documentType>4</documentType>
<periodOfReport>2003-07-09</periodOfReport>
<notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0001003989</issuerCik>
        <issuerName>DAOU SYSTEMS INC</issuerName>
        <issuerTradingSymbol>DAOU</issuerTradingSymbol></issuer>
<reportingOwner>
<reportingOwnerId>
            <rptOwnerCik>0001249853</rptOwnerCik>
            <rptOwnerName>MALCOLM DANIEL J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>  </rptOwnerStreet1>
            <rptOwnerStreet2>  </rptOwnerStreet2>
            <rptOwnerCity>  </rptOwnerCity>
            <rptOwnerState>  </rptOwnerState>
            <rptOwnerZipCode>  </rptOwnerZipCode>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>1</isDirector>
<isOfficer>1</isOfficer>
<isTenPercentOwner>0</isTenPercentOwner>
<isOther>0</isOther>
<officerTitle>President &amp; CEO</officerTitle>
<otherText></otherText></reportingOwnerRelationship></reportingOwner>
<nonDerivativeSecurity>
<securityTitle>
<value>Common Stock, par value $0.001 per share</value></securityTitle>
<transactionDate>
<value>2003-07-09</value></transactionDate>
<deemedExecutionDate>
<value>2003-07-09</value></deemedExecutionDate>
<transactionCoding>
<transactionFormType>4</transactionFormType>
<transactionCode>D</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
<footnoteId id="F1"/></transactionCoding>
<transactionTimeliness>
<value></value></transactionTimeliness>
<transactionAmounts>
<transactionShares>
<value>54167</value></transactionShares>
<transactionValue>
<value>0.52</value></transactionValue>
<transactionAcquiredDisposedCode>
<value>D</value></transactionAcquiredDisposedCode></transactionAmounts>
<postTransactionAmounts>
<sharesOwnedFollowingTransaction>
<value>95833</value></sharesOwnedFollowingTransaction></postTransactionAmounts>
<ownershipNature>
<directOrIndirectOwnership>
<value>D</value></directOrIndirectOwnership>
<natureOfOwnership>
<value></value></natureOfOwnership></ownershipNature></nonDerivativeSecurity>
<nonDerivativeSecurity>
<securityTitle>
<value>Common Stock, par value $0.001 per share</value></securityTitle>
<transactionDate>
<value>2003-07-09</value></transactionDate>
<deemedExecutionDate>
<value>2003-07-09</value></deemedExecutionDate>
<transactionCoding>
<transactionFormType>4</transactionFormType>
<transactionCode>D</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
<footnoteId id="F2"/></transactionCoding>
<transactionTimeliness>
<value></value></transactionTimeliness>
<transactionAmounts>
<transactionShares>
<value>95833</value></transactionShares>
<transactionValue>
<value>0.684</value></transactionValue>
<transactionAcquiredDisposedCode>
<value>D</value></transactionAcquiredDisposedCode></transactionAmounts>
<postTransactionAmounts>
<sharesOwnedFollowingTransaction>
<value>0</value></sharesOwnedFollowingTransaction></postTransactionAmounts>
<ownershipNature>
<directOrIndirectOwnership>
<value>D</value></directOrIndirectOwnership>
<natureOfOwnership>
<value></value></natureOfOwnership></ownershipNature></nonDerivativeSecurity>
<footnotes>
<footnote id="F1">(1) Shares repurchased by the Issuer pursuant to the repurchase rights; price equal to Mr. Malcolm&apos;s cost in 2001 purchased from Issuer.</footnote>
<footnote id="F2">(2) Shares repurchased by the Issuer at fair market value based on 10-day average immediately preceding date of closing.</footnote></footnotes>
<ownerSignature>
<signatureName>Daniel J Malcolm</signatureName>
<signatureDate>2003-07-09</signatureDate></ownerSignature></ownershipDocument>


</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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