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) November 14, 1996
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 ISSUED A PRESS RELEASE DATED NOVEMBER 14, 1996 ANNOUNCING
IMPROVED OPERATIONS FOR THE 3RD QUARTER ENDED SEPTEMBER 30, 1996. THE PRESS
RELEASE IS APPENDED AS EXHIBIT 99.1.
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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 there
unto duly authorized.
ADAGE, INC.
/s/ Robert T. Holland
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Robert T. Holland
Vice President - Finance
Date: November 14, 1996
EXHIBIT 99.1
Summary: Adage, Inc. announces improved
operations for the 3rd quarter and
9 months ending September 30, 1996.
Relm Communications' sales increase 16%.
Company Contact: Donald F.U. Goebert
Chairman & President
Adage, Inc.
(610) 430-3900
FOR IMMEDIATE RELEASE:
WEST CHESTER, PENNSYLVANIA, NOVEMBER 14, 1996 .... ADAGE, INC. (NASDAQ-ADGE),
today announced improved operations for the third quarter and nine months
which ended September 30, 1996.
Although the third quarter saw a net loss of ($84,000) or ($.02) per share,
the Company feels that this is a substantial improvement when compared to the
1995 third quarter net loss from continuing operations of ($731,000) or ($.14)
per share. "We feel that our strategies for the wireless communications
equipment business are rapidly bearing fruit," stated Donald Goebert, President
of Adage, Inc.
Once again, Relm Communications, the Company's wireless communications
equipment subsidiary, spearheaded this improvement. Relm's revenue grew 16% to
$11,597,000, an increase of $1.6 million. Manufacturing efficiencies improved as
costs of sales dropped to 76% from 78% in the prior year.
Relm now accounts for more than 60% of the Company's revenues.
Additionally, during the third quarter, Relm reported that it had received a
contract for approximately $40,000,000 from the U.S. Army for wireless
equipment. Shipments of $8,000,000 will start in 1997. In addition, Relm has
announced the introduction of a new line of multi-band programmable radio
scanners which are expected to contribute to its sales growth in 1997.
Revenues for Adage for the third quarter were $18,608,000 a decline of
$649,000 from the prior year quarter. This revenue shortfall was entirely the
result of a $5 million revenue decline at Ft. Orange Paper, resulting from both
decreased volume and price reductions.
For the nine months year-to-date, revenues declined to $59,074,000 from
$62,130,000 in the prior year period, entirely as the result of shortfalls at
Ft. Orange Paper. Net income from continuing operations rose to $193,000 v. a
loss of ($1,032,000) for the nine months of 1995.
Adage, Inc. is a producer of wireless communications equipment and
electronics products, and also has interests in paperboard manufacturing.
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(Tables Follow)
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ADAGE, INC.
Condensed Financial Statement
(Unaudited)
($000 Omitted - Except Per Share Data)
3RD QUARTER ENDED
SEPTEMBER 30,
1996 1995
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Sales $ 18,608 $ 19,257
Cost of Sales $ 14,764 $ 16,247
Net Income (Loss) $ (84) $ (731)
From Continuing Operations
Per Share Net Income $ (.02) $ (.14)
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Weighted Average Common
Shares Outstanding 5,126,698 5,105,440
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* * * * *
NINE MONTHS ENDED
SEPTEMBER 30,
1996 1995
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Sales $ 59,074 $ 62,130
Cost of Sales $ 46,025 $ 50,952
Net Income (Loss) $ 193 $ (1,032)
From Continuing Operations
Per Share Net Income $ .04 $ (.20)
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Weighted Average Common
Shares Outstanding 5,124,473 5,100,875
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