Hawaiian Telephone Company entered into

a contract with Microform Data Systems, Inc. (Microform),

for Microform to provide a computerized assistance system

that would handle 15,000 calls per hour with a one-second

response time and with a "nonstop" feature to allow automatic

recovery from any component failure. The contract called for

installation of the host computer no later than mid-February

of the next year. Microform was not able to meet the initial

installation date, and at that time, it was determined that

Microform was at least nine months away from providing a

system that met contract specifications. Hawaiian Telephone

canceled the contract and sued Microform for damages.

Did Microform materially breach the contract? Can Hawaiian

Telephone recover damages?