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Technology Stocks : ADSOD-Adaptive solutions -- Ignore unavailable to you. Want to Upgrade?

To: tonyt who wrote (355)	1/12/1998 11:27:00 AM
From: tonyt	Read Replies (1) \| Respond to of 477

Adaptive Solutions Expects to Post an Operating Profit in the 1997 Fourth Quarter =================================================== 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 Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com Copyright 1998, Business Wire