Adaptive Solutions Reports Revenueÿ Gains for First Quarter
=======================================================
ÿÿ BEAVERTON, Ore.--(BUSINESS WIRE)--April 21, 1998--Adaptive
Solutions Inc. (NASDAQ:ADSO) today announced results for its first
quarter ended March 31, 1998.
ÿÿ Total revenue for the three months ended March 31, 1998 was
$1,268,000, an increase of 75% from revenue of $725,000 in the first
quarter of 1997.ÿ The 1998 first quarter results include one-time
charges of $678,000 to write off in-process research and development
expense related to the previously announced acquisition of Mimetics,
S.A., a French recognition software company acquired in March, 1998.
If these one-time charges are excluded from 1998 first quarter
results, the company would have had a net loss of $206,000 or $0.03
earnings per share.ÿ Including the charges, the net loss for the
latest quarter was $884,000 or $0.12 per share, compared with a net
loss of $278,000 or $0.04 per share a year ago.
ÿÿ "The first quarter results demonstrate continued progress in our
transition to becoming a leading Computer Assisted Data Entry
company," commented Dan Meub, president and chief executive officer
of Adaptive Solutions. "Revenue included our first product sale from
the acquisition of the Kodak OCR product line in late October, 1997
and one month of revenue from Mimetics, S.A.ÿ With the Kodak OCR and
Mimetics business now fully transitioned, we expect substantially
larger contributions from these sources in future quarters.ÿ First
quarter revenue also included the second and final payment of
$750,000 from our restructured technology agreement with Motorola,
Inc. In accordance with our plan, we are using the proceeds from the
company's earlier technology expertise to fund the transition to our
new strategy.
ÿÿ "Looking forward, we are encouraged with the expanding pipeline
of prospective sales of our new full-function EntryLink data-entry
product line which builds on the strength of the acquired Kodak
Imagelink OCR products," continued Meub. "We have several potential
multi-unit sales in process with government customers, where the
sales cycle is somewhat extended and the timing is uncertain.ÿ Based
on the number of opportunities and progress with potential prospects,
however, we remain optimistic that we will generate increased product
revenue from the EntryLink line as it is fully launched this quarter.
Early customer response to our upcoming new product introductions has
been very positive.ÿ Moreover, we continue to build revenue from
service contracts with the Kodak installed base and also expect
growing product and R&D revenue from Mimetics."
ÿÿ This press release contains forward-looking statements which
involve risks and uncertainties that could cause actual results to
differ materially from those anticipated in the forward-looking
statements, including, without limitation, development of additional
sales of Kodak OCR products from new and existing customers,
implementation of the company's plans to add to the acquired product
line, successful completion of expected contracts and continued cost
control.ÿ These risks and uncertainties are discussed in greater
detail in the company's reports to the S.E.C.
ÿÿ Adaptive Solutions, headquartered in Beaverton, Ore., was
founded in 1988 and pioneered data parallel processing for advanced
pattern recognition, image processing, and intelligent character
recognition applications.ÿ Today, Adaptive Solutions provides
productive, mission critical, data entry through standards-based
Computer Assisted Data Entry (CADE) solutions.
*T
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ADAPTIVE SOLUTIONS
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ CONSOLIDATED INCOME STATEMENT
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (unaudited)
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (000, except per share data)
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Quarter Ended
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 3/31/98ÿÿÿÿÿÿÿÿÿ 3/31/97
Net Product Revenueÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $ 1,022ÿÿÿÿÿÿÿÿÿÿÿ $ 676
Service Revenueÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 187ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ -
R & D Revenueÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 56ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 49
Other Revenueÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 3ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ -
TOTAL REVENUEÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1,268ÿÿÿÿÿÿÿÿÿÿÿÿÿ 725
Cost of Product Revenueÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 213ÿÿÿÿÿÿÿÿÿÿÿÿÿ 240
Research & Developmentÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 613ÿÿÿÿÿÿÿÿÿÿÿÿÿ 284
Sales & Marketingÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 476ÿÿÿÿÿÿÿÿÿÿÿÿÿ 202
General & Administrativeÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 191ÿÿÿÿÿÿÿÿÿÿÿÿÿ 285
In-process research and developmentÿÿÿÿÿÿÿÿÿÿÿ 678ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ -
TOTAL OPERATING COSTS AND
ÿÿ EXPENSESÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 2,171ÿÿÿÿÿÿÿÿÿÿÿ 1,011
OPERATING LOSSÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (903)ÿÿÿÿÿÿÿÿÿÿÿ (286)
Interest Incomeÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 24ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 34
Interest (Expense)/Other Incomeÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (5)ÿÿÿÿÿÿÿÿÿÿÿÿ (17)
Gain (Loss) on Sale of Assetÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ -ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (9)
LOSS BEFORE
ÿÿ INCOME TAXESÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (884)ÿÿÿÿÿÿÿÿÿÿÿ (278)
Income Tax Expenseÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ -ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ -
NET LOSSÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $ (884)ÿÿÿÿÿÿ $ÿÿÿ (278)
NET LOSS PER SHARE
ÿÿÿ Basic and dilutedÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $ (0.12)ÿÿÿÿÿÿ $ÿÿ (0.04)
SHARES USED IN CALCULATING
ÿÿÿ NET LOSS PER SHARE:
ÿÿÿÿÿ Basic and dilutedÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 7,390ÿÿÿÿÿÿÿÿÿÿÿ 6,972
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ADAPTIVE SOLUTIONS
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ CONSOLIDATED BALANCE SHEET
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (000)
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 3/31/98ÿÿÿÿÿÿÿÿ 12/31/97
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (unaudited)
Cash and cash equivalentsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $ÿÿ 1,815ÿÿÿÿÿÿÿ $ÿÿ 1,892
Restricted cashÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ -ÿÿÿÿÿÿÿÿÿÿÿÿÿ 160
Short-term investmentsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ -ÿÿÿÿÿÿÿÿÿÿÿÿÿ 337
Accounts receivable, netÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1,126ÿÿÿÿÿÿÿÿÿÿÿÿÿ 915
Inventory, netÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 522ÿÿÿÿÿÿÿÿÿÿÿÿÿ 536
Prepaid expenses and other assetsÿÿÿÿÿÿÿÿÿÿÿÿÿ 118ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 72
TOTAL CURRENT ASSETSÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 3,581ÿÿÿÿÿÿÿÿÿÿÿ 3,912
Fixtures and Equipment, netÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 743ÿÿÿÿÿÿÿÿÿÿÿÿÿ 679
Intangible Assets, netÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 632ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 99
Other Assetsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 49ÿÿÿÿÿÿÿÿÿÿÿÿÿ 148
TOTAL ASSETSÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $ÿÿ 5,005ÿÿÿÿÿÿÿ $ÿÿ 4,838
Accounts payableÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $ÿÿÿÿ 313ÿÿÿÿÿÿÿ $ÿÿÿÿ 286
Accrued expensesÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 847ÿÿÿÿÿÿÿÿÿÿÿÿÿ 452
Current portion of capital
lease obligationsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 172ÿÿÿÿÿÿÿÿÿÿÿÿÿ 254
Deferred revenueÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 422ÿÿÿÿÿÿÿÿÿÿÿÿÿ 183
Royalties payableÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 40ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ -
Notes payableÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 184ÿÿÿÿÿÿÿÿÿÿÿÿÿ 376
TOTAL CURRENT LIABILITIESÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1,978ÿÿÿÿÿÿÿÿÿÿÿ 1,551
Capital lease obligations, less
ÿÿ current portionÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 22ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 38
Long-term debtÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 287ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ -
TOTAL STOCKHOLDERS' EQUITYÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 2,718ÿÿÿÿÿÿÿÿÿÿÿ 3,249
TOTAL LIABILITIES AND
ÿÿ STOCKHOLDERS' EQUITYÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $ÿÿ 5,005ÿÿÿÿÿÿÿ $ÿÿ 4,838
*T
ÿÿ CONTACT:ÿ Adaptive Solutions, Inc.
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Daniel J. Meub, 503/690-1236
ÿÿÿÿÿÿÿÿÿÿÿÿÿ or
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Harris Massey Herinckx
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Fletcher Chamberlin, 503/973-9226
ÿÿ KEYWORD:ÿ OREGON
ÿÿ INDUSTRY KEYWORD:ÿ COMPUTERS/ELECTRONICS COMED EARNINGS
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