8-K

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 3, 2004

A.D.A.M., INC.

(Exact name of registrant as specified in its charter)

Georgia	0-26962	58-1878070
(State or other jurisdiction of incorporation)	(Commission file number)	(I.R.S. Employer Identification No.)

1600 RiverEdge Parkway, Suite 100, Atlanta, Georgia 30328-4696

(Address of Principal Executive Offices)

Registrant’s telephone number, including area code: (770) 980-0888

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-(c))

Item 2.02               Results of Operations and Financial Condition.

                On November 3, 2004, A.D.A.M., Inc. issued a press release announcing its financial results for the three and nine months ended September 30, 2004. A copy of the press release is furnished herewith as Exhibit 99.1.

Item 9.01               Financial Statements and Exhibits.

The following exhibit is being furnished with this report pursuant to Item 2.02 of this Form 8-K:

Exhibit No.	Description
99.1	Press Release of Registrant Regarding Financial Results for the Third Quarter Ended September 30, 2004.

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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.

		A.D.A.M., Inc.
Date: November 3, 2004	By:	/s/ ROBERT S. CRAMER, JR.
		Robert S. Cramer, Jr. Chief Executive Officer
	By:	/s/ KEVIN S. NOLAND
		Kevin S. Noland President, Chief Operating Officer and Corporate Secretary (acting principal financial and accounting officer)

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EXHIBIT INDEX

ExhibitNumber	Exhibit Name
99.1	Press Release dated November 3, 2004

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EX-99.1

EXHIBIT 99.1

HOLD FOR RELEASE UNTIL 7:30am ET November 3, 2004

A.D.A.M. Announces Third Quarter Earnings of $0.05 Per Share

Revenues increase 22%, Healthcare-related revenues climb 47%

Atlanta, GA — November 3, 2004 — A.D.A.M., Inc. (Nasdaq: ADAM), a leading developer of interactive health information and decision support tools for the healthcare and education markets, today announced financial results for the third quarter ended September 30, 2004.

A.D.A.M, Inc. reported net income for the third quarter of 2004 of $405,000, or $0.05 per fully diluted share, as compared to net income of $86,000, or $0.01 per fully diluted share, in the year ago quarter.  Revenues for the quarter ended September 30, 2004 were $2,278,000 compared to revenues of $1,873,000 in the year-ago period, an increase of approximately 22%.

A.D.A.M. reported net income for the nine-month period ended September 30, 2004 of $945,000, or $0.11 per fully diluted share, as compared to net income of $511,000, or $0.06 per fully diluted share, for the nine months ended September 30, 2003.  Revenues for the nine-month period ended September 30, 2004 were $5,962,000 compared to revenues of $6,151,000 during the same period last year.  The decrease in revenues for the nine-month period was due to the expiration of a content license agreement with WebMD Corp. that contributed approximately $600,000 of revenue in the first quarter of 2003.

Revenues from the Company’s healthcare-related business increased approximately 47%, to $1,567,000 for the three months ended September 30, 2004 as compared to $1,063,000 for the year ago quarter. Revenues from healthcare represent approximately 69% of the Company’s total revenues for the three-month period ended September 30, 2004.

On a sequential performance basis, revenues for the third quarter of 2004 increased approximately 18% as compared to the second quarter of 2004, net income increased approximately 29%, and cash and investments increased approximately 23%.  As of September 30, 2004, the Company’s cash and investments were $6,411,000, an increase of $1,857,000 as compared to $4,554,000 as of December 31, 2003.

Robert S. Cramer, Jr., A.D.A.M.’s Chairman and CEO, commented: “Our results today demonstrate A.D.A.M.’s ability to grow its business. With a number of new initiatives in place, and seven consecutive quarters of profitability behind us, we anticipate a strong year-end finish and believe we are well positioned for 2005.”

Conference Call Information

A.D.A.M. will hold its third quarter earnings conference call today, November 3, 2004, at 10:00 A.M. ET. To participate in the call, please dial (877) 829-1372 approximately five minutes prior to the start time.  International callers may dial (706) 679-8134.

Forward-Looking Statements

Except for historical information, all of the statements, expectations and assumptions contained in this press release are forward-looking statements. These statements, especially revenue, net income and cash flow forecasts, involve a number of risks and uncertainties that could cause actual results, performance or developments to differ materially. Factors that could affect the company’s actual results, performance or developments include general economic conditions, development of the Internet as a source of health information, pricing actions taken by competitors, demand for the company’s health information, and changes in laws and regulations that impact how the company conducts its business. A.D.A.M. disclaims any obligation or duty to update any of its forward-looking statements.

About A.D.A.M., Inc.

For more than a decade, A.D.A.M.’s unique, visually engaging health content, decision support tools and educational products have been helping millions of people “get smart” about their health and wellness. With one of the largest consumer-oriented medical information libraries in the world, A.D.A.M. markets its solutions to leading healthcare and pharmaceutical organizations, government, employers, and educational institutions. To learn more about A.D.A.M., visit www.adam.com or call 1-800-408-ADAM.

For further information, contact:

Victor Thompson

A.D.A.M., Inc.

(770) 425-7877

###

A.D.A.M., Inc.

Condensed Consolidated Statements of Operations

and Summary Balance Sheet Data

(In thousands, except per share data)

(Unaudited)

	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2004		2003		2004		2003
Total Revenues	$	2,278	$	1,873	$	5,962	$	6,151
Operating expenses:
Cost of revenues	457		420		1,185		1,296
General and administrative	458		487		1,206		1,312
Product and content development	407		281		1,007		1,124
Sales and marketing	430		392		1,227		1,353
Depreciation and amortization	146		217		443		588
Total operating expenses	1,898		1,797		5,068		5,673
Operating income	380		76		894		478
Interest income (expense), net	25		10		51		33
Net income	405		86		945		511
Basic net income per common share	$	0.05	$	0.01	$	0.12	$	0.07
Basic weighted average number of common shares outstanding	7,904		7,421		7,881		7,163
Diluted net income per common share	$	0.05	$	0.01	$	0.11	$	0.06
Diluted weighted average number of common shares outstanding	8,735		8,325		8,649		7,973

	Summary Balance Sheet Data
	9/30/2004		12/31/2003
Cash and cash equivalents	$	2,686	$	4,554
Accounts receivable, net	1,316		1,407
Investments, short term	2,725		—
Total current assets	7,196		6,355
Investments, long term	1,000		—
Goodwill	2,043		2,043
Total assets	12,073		10,496
Deferred revenue	2,854		2,295
Short term debt	12		11
Total current liabilities	3,612		2,940
Total liabilities	3,639		2,976
Shareholders' equity	8,434		7,520
Working capital	3,584		3,415