SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 13, 1996
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Adage, Inc.
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(Exact name of registrant as specified in its charter)
Pennsylvania 33-31797 04-2225121
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400 Willowbrook Lane, West Chester, Pa 19382
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Registrant's telephone number, including area code 610-430-3900
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(Former name or former address, if changed since last report.)
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ITEM 5 - OTHER EVENTS
THE REGISTRANT RELEASED A QUARTERLY SHAREHOLDER'S REPORT WHICH
INCLUDED A LETTER FROM THE CHAIRMAN AND PRESIDENT. THIS LETTER IS
APPENDED AS EXHIBIT 1.
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Pursuant to the requirements of Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
ADAGE, INC.
/s/Robert T. Holland
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Robert T. Holland
Vice President - Finance
Date: September 13, 1996
EXHIBIT 1
Dear Shareholder:
I am pleased to announce that RELM Communications, our wholly owned subsidiary,
has received a contract for approximately $40,000,000 from the U.S. Army for
wireless communications equipment. This is our largest contract to date, and
will generate about $8,000,000 in revenue annually for the next five years.
Net income for the second quarter of 1996 increased to $75,000 or $.01 per share
versus a loss from continuing operations of ($47,000) or ($.01) per share for
the same quarter in 1995. For the first half, net income grew to $277,000 or
$.05 per share, as compared to a loss from continuing operations for the first
half of 1995 of ($301,000) or ($.06) per share.
First Half 1996 First Half 1995
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Sales $ 23,986 $ 23,213
Operating Income 942 452
Operating Margin 3.9% 1.9%
This improved profitability was generated by RELM Communications, our wireless
communications equipment subsidiary.
Adage is strongly committed to expanding its position in the wireless
communications equipment market. RELM has recently announced the appointment of
Dr. John S. Gregory as Chief Scientist. In this role, Dr. Gregory will direct
efforts to maximize the technology transfers inherent in the Company's strategic
alliances with Motorola, Tadiran Ltd. of Israel and Stanilite Electronics of
Australia. He will also spearhead the Company's continued development of digital
wireless communication equipment.
Recently RELM introduced three new wireless communication products to complement
its existing product line.
o A line of UHF Desktop Base Stations and Repeaters which offer
enhancements that upgrade the management of channel assignments and
better communicate channel changes to all system users. These new base
stations and repeaters offer our customers standard features which are
only available as add-on options on competitor's systems.
o A new series of "Jerk and Run" units which combine a hand held radio
with a vehicular-mounted amplifier and battery changer. This unit
allows fire, police, search and rescue and other emergency personnel to
have the mobility of a hand-held radio, combined with the effective
range and reliability of a mobile radio mounted in a vehicle.
o A line of In Band and Cross Band Mobile Repeaters which will allow our
customers to select any combination of RELM SL and SM Series radios to
best serve their individual needs, thus adding even more flexibility to
the RELM product offerings.
Very truly yours,
Donald F.U. Goebert
Chairman and President
