ADAPTIVE SOLUTIONS ANNOUNCES THIRD QUARTER
RESULTS, COMMENTS ON OUTLOOK
Beaverton, OR - November 3, 1997 -- Adaptive Solutions Inc.
(NASDAQ:ADSO) today announced results for the third quarter ended
September 30, 1997. The company also commented on its improved
outlook based on the recently announced acquisition of a new product
line from Eastman Kodak.
Total revenue for the 1997 third quarter was $507,000, compared with
$986,000 for the 1996 third quarter. The net loss for the 1997 third
quarter was $355,000 or $0.05 per share, down from a net loss of
$1,817,000 or $0.26 per share for the 1996 third quarter.
"Our revenue this quarter was somewhat lower than we expected earlier
in the year," commented Dan Meub, president and chief executive officer
of Adaptive Solutions. "This was in large part due to lower than expected
revenues from our previously announced development contract with
Northrop Grumman which were limited by Motorola's inability to deliver
its VECOMP chip in the time frame originally planned.
"Last week's announcement of our acquisition of the Imagelink OCR
product and service business from Eastman Kodak is much more
significant to Adaptive's future than the latest earnings might indicate,"
continued Meub. "We have been planning this acquisition for some time
and expect to provide major product enhancements and market building
sales and service activities in the near term. Our plans call for significantly
improved revenue growth in the fourth quarter as we rebuild Adaptive
around a product and customer focused business. While we do expect
fourth quarter acquisition write-offs and some investment in service and
sales infrastructure to support this new business, we also believe the
Kodak Imagelink OCR business will provide the basis for profitability as
we move into 1998.
"This quarter represents the end of Adaptive Solutions' transition from
being a technology component provider to a more product focused
company as we become a leader in Computer Assisted Data Entry
(CADE) solutions," Meub said. "The Imagelink OCR acquisition is the
first major move of our new corporate strategy which is articulated on
our new web site - www.asi.com."
"Our company is excited about providing next generation solutions to
Kodak's current and new customers that will be unique in their
completeness and reliability," Meub concluded. "First, as a top tier
Kodak reseller, we will be providing market-leading production scanners
and micro-imagers which offer our customers added convenience and
security. Second, with our Kodak third party service agreement, our
solutions will be backed by the Kodak Professional Services organization
worldwide. And third, upcoming product solutions will build on the
proven Kodak OCR product line, breaking new ground as we
incorporate new image processing, recognition, forms validation, as well
as advanced character recognition technology also acquired from
Kodak."
Adaptive Solutions was founded in 1988 and pioneered data parallel
processing for advanced pattern recognition, image processing, and
intelligent character recognition applications. The company currently
designs and markets advanced solutions for Computer Assisted Data
Entry to corporate-wide data management systems. Additional
information is available on the company's web site at
www.asi.com.
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, a
shortfall in revenues generated from the Imagelink product line, management of the
transition of the Imagelink product line from Kodak, development of additional
sales of the Imagelink products from new and existing customers, implementation
of the company's plans to add to the acquired product line, successful completion
of expected contracts, continued expansion and maintenance of partnerships and
availability of necessary hardware. These risks and uncertainties are discussed in
greater detail in the company's Form 10-K and Form 10-Q reports to the S.E.C.
Imagelink and Kodak are trademarks of the Eastman Kodak Company.
For Tables see asi.com |
