Adaptive Solutions Expects to Post an Operating Profit in the 1997
Fourth Quarter
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BEAVERTON, Ore.--(BUSINESS WIRE)--Jan. 12, 1998--Adaptive
Solutions Inc. (NASDAQ:ADSO) today announced that it expects to
report an operating profit for its fourth fiscal quarter which ended
December 31, 1997.
This result, which is an improvement over earlier expectations of an
operating loss for the quarter, is primarily the result of changes in
and final payments under a technology agreement with Motorola, Inc.
Under the new agreement, Motorola is making payments of approximately
$1.5 million to Adaptive Solutions in two installments during the
fourth quarter of 1997 and the first quarter of 1998. In addition,
Adaptive Solutions began earning fourth quarter revenue as a result
of its purchase of Eastman Kodak Company's optical character recognition
(OCR) business.
As previously disclosed, the company expects to record one-time
fourth quarter write-offs in connection with the OCR acquisition and
transition to its revised business strategy. When the write-offs are
subtracted from the company's operating profit, the result will be a
net loss for the quarter. The company expects to report detailed
fourth quarter and audited full year results on or about February 5,
1998.
"The customer agreement that led to this improved fourth quarter is
an important example of how we are effectively using our existing
technology to fund our transition to a higher-return position as a
leading Computer Assisted Data Entry company," commented Dan Meub,
president and chief executive officer of Adaptive Solutions. "The
second payment under the agreement is also expected to contribute to
a profitable first quarter in 1998 and helps us continue to make the
necessary investments in product, customer and channel development to
generate growth after that. We are very excited about the
integration of the recently-acquired Kodak IMAGELINK OCR product with
EntryLink, our new full-function data entry product line."
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, management of the
transition of the IMAGELINK OCR product line from Kodak, development
of additional sales of the IMAGELINK 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, 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.
Adaptive Solutions, headquartered in Beaverton, Oregon, was founded
in 1988 and pioneered data parallel processing for advanced pattern
recognition, image processing, and intelligent character recognition
applications. Today, Adaptive Solutions provides productive, mission
critical, data entry through standards-based Computer Assisted Data
Entry (CADE) solutions.
CONTACT: Adaptive Solutions, Inc.
Daniel J. Meub, 503/690-1236
or
Harris Massey Herinckx
Fletcher Chamberlin, 503/295-1922
KEYWORD: OREGON
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
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