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 19, 1997
-----------------
Adage, Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 33-31797 04-2225121
------------ -------- ----------
7505 Technology Drive, West Melbourne, Florida 32904
----------------------------------------------------
Registrant's telephone number, including area code 407-984-1414
------------
(Former name or former address, if changed since last report.)
<PAGE>
Item 5 - Other Events
The registrant issued a press release dated November 14, 1997 announcing
operating results for the quarter and nine months ended September 30, 1997. The
press release is appended as exhibit 1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized
Adage, Inc.
(Registrant)
Date: November 19, 1997
By: /s/ William P. Kelly
--------------------------
Vice President Finance/CFO
SUMMARY: Adage, Inc. (NASDAQ: ADGE)
Announces 3rd Quarter Results
Change in Certifying Accountants
Company Contact:
William P. Kelly
VP of Finance and CFO
Adage, Inc.
407-984-1414
WEST CHESTER, PENNSYLVANIA NOVEMBER 14, 1997 ... ADAGE, INC. (NASDAQ: ADGE)
Adage, Inc., a producer of wireless communications products, reported
operating results for the third quarter ended September 30, 1997.
Revenues for the quarter were $11.0M, a decrease of $.6M (5.4%) from the
same period in 1996 and a decrease of $2.6M (19.4%) from the second quarter
of 1997. Earnings from continuing operations were $128K compared to $156K for
the same period in 1996, and $48K for the second quarter ended June 30, 1997.
Certain expense items were classified which resulted in a restatement of the
quarter 2 results. The restatment did not change net earnings.
Revenues in the company's core product lines, two-way land mobile products,
increased 10.2% from 1996 on the strength of a long-term contract with the
U.S. Army which started this year. This improvement, however, was offset by
lower customer demand in the load management and component product lines.
Increased earnings reflect the initial benefit associated with the consolidation
of operations in the West Melbourne, Florida facility from Lawrence, Kansas.
Management expects to realize additional cost improvements in future quarters
as the consolidation program continues. Additionally, the company significantly
upgraded its manufacturing capability with an investment in state-of-the-art
surface-mount equipment. This investment will improve throughput and first-pass
quality.
The company also announced a change in its certifying accountants. Ernst &
Young LLP have been selected as the certifying accountants for 1997. William
P. Kelly, VP of Finance and CFO stated that "Ernst & Young is a welcome
addition. They will contribute to and strengthen our management and financial
teams".
ADAGE, INC.
CONDENSED FINANCIAL STATEMENTS OF INCOME
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30
1997 1996
---- ----
000's Omitted
Sales $10,973 $11,596
Net Income (Loss) From
Continuing Operations $128 $156
Net Income (Loss) From
Discontinued Operations $92 ($240)
Net Income (Loss) $220 ($84)
Earnings Per Share
Continuing Operations $0.02 $0.03
Discontinued Operations $0.02 ($0.05)
Net Income (Loss) $0.04 ($0.02)
Weighted Average
Common Shares Outstanding 5,030,387 4,126,698
ADAGE, INC.
CONDENSED FINANCIAL STATEMENTS OF INCOME
(Unaudited)
FOR THE NINE MONTHS ENDED SEPTEMBER 30
1997 1996
---- ----
000's Omitted
Sales $34,042 $35,582
Net Income (Loss) From
Continuing Operations ($84) $435
Net Income (Loss) From
Discontinued Operations ($314) ($242)
Net Income (Loss) ($398) $193
Earnings Per Share
Continuing Operations ($0.02) $0.09
Discontinued Operations ($0.06) ($0.05)
Net Income (Loss) ($0.08) $0.04
Weighted Average
Common Shares Outstanding 5,080,977 5,124,473
