Adaptive Solutions Announces Bank Loan Agreement.BEAVERTON, Ore.--(BUSINESS WIRE)--Aug. 13, 1998--Adaptive Solutions Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADSO) announced today that it has agreed to a line of credit for up to $2 million with Silicon Valley Bank. Borrowings under this line of credit are based on a formula tied to the company's accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and certain restrictive covenants Restrictive covenants Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. which are more fully disclosed in the company's 10-Q. The credit agreement calls for interest to be paid at the prime rate plus 1.5%. Currently, the company expects to use approximately $350,000 of the line based on the borrowing base formula and restrictive covenants. "We are pleased to have this financing in place to support our future operations," said Daniel J. Meub, president and chief executive of Adaptive Solutions. "Sales opportunities for our computer assisted data entry products are taking longer than expected to close. This agreement will help us get through this new product ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale period." "At the same time," continued Meub, "we havereduced our expenses and combined our product development and marketing organizations under Chuck Hall, now our VP of products. Combined with the ongoing sales efforts that will be supported by this loan facility, these moves are aimed at improving our returns to our shareholders." 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, development of additional sales from the company's new EntryLink product line, continued sales of the acquired ImageLink product line, the timing and size of such revenues and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , and compliance with the restrictive covenants of the loan agreement. These risks and uncertainties are discussed in greater detail in the company's reports to the S.E.C. Adaptive Solutions, headquartered in Beaverton, Oregon Beaverton is a city in Washington County, Oregon, United States, seven miles west of Portland in the Tualatin River Valley. As of May 2006, its population is estimated to be 84,270,[1] 9.1% more than the 2000 census figure of 76,129. , was founded in 1988 and pioneered data parallel processing parallel processing, the concurrent or simultaneous execution of two or more parts of a single computer program, at speeds far exceeding those of a conventional computer. for advanced pattern recognition, image processing, and intelligent character recognition In computer science, intelligent character recognition (ICR) is an advanced optical character recognition (OCR) system that allows fonts and different styles of hand writing to be learned by a computer during processing to improve accuracy and recognition levels. applications. Today, Adaptive Solutions provides productive, mission-critical data entry through standards-based Computer Assisted Data Entry (CADE) solutions.
CONTACT: Adaptive Solutions, Inc. Harris Massey Herinckx
Daniel J. Meub Fletcher Chamberlin
President and CEO I.R. Counsel
503/690-1236 503/973-9226
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