



================================================================================

                                    FORM 8-K



                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

          Date of Report (date of earliest event reported) May 6, 1997


                       ADVANCED MACHINE VISION CORPORATION
             (Exact name of registrant as specified in its charter)


                                   California
                 (State or other jurisdiction of incorporation)


                0-20097                            33-0256103
       (Commission File Number)      (I.R.S. Employer Identification No.)

         2067 Commerce Drive
            Medford, Oregon                           97504
(Address of principal executive offices)           (Zip Code)

                                  541-776-7700
              (Registrant's telephone number, including area code)

                                   ARC Capital
          (Former name or former address, if changed since last report)



                            Total Number of Pages: 24


================================================================================

================================================================================


<PAGE>


Item 2.           Acquisition or Disposition of Assets
                  ------------------------------------

                  On May 6, 1997,  Advanced Machine Vision  Corporation sold all
                  of the outstanding  stock of Pulsarr Holding BV ("Pulsarr") to
                  Barco NV of  Belgium  for $8.4  million  in cash.  The sale of
                  Pulsarr  followed  an  unsolicited  offer  from Barco with the
                  price being determined by arms-length negotiations. Pulsarr is
                  engaged  in the  design  and  manufacture  of  machine  vision
                  sorting equipment for the food processing industry.  Pulsarr's
                  assets   and   liabilities   included   principally   accounts
                  receivable, inventory, property, plant and equipment, accounts
                  payable, bank borrowings, accruals, mortgages and other items.

Item 5.           Other Events
                  ------------

                  On April 9,  1997,  Mr.  Asif  Ahmad  and Dr.  Nagaraj  Murthy
                  resigned as members of Advanced Machine  Vision  Corporation's
                  Board of Directors. Simultaneously, the size of the  board was
                  reduced from nine to seven members.

Item 7.           Financial Statements and Exhibits
                  ---------------------------------

                  b.  Unaudited Proforma Financial Information

                      Balance Sheet at March 31, 1997

                      Statement  of  Operations for the Year Ended  December 31,
                      1996

                      Statement  of  Operations for the Quarter Ended  March 31,
                      1997

                  c.  Exhibits

                      Share  Purchase   Agreement   between  Barco  NV  and  ARC
                      Netherlands BV dated April 29, 1997


                                   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.

                                                     ARC CAPITAL


Date:   May 9, 1997                           By: /s/ Alan R. Steel
                                                  ------------------------------
                                                  Vice President of Finance and
                                                  Chief Financial Officer



<PAGE>


Item 7.b.         Unaudited Proforma Financial Information
                  ----------------------------------------

                  Introductory Information
                  ------------------------
                  On May 6,  1997,  Advanced  Machine  Vision  Corporation  (the
                  "Company" or "AMV") sold all of the outstanding  capital stock
                  of Pulsarr  Holding BV  ("Pulsarr") to Barco NV of Belgium for
                  $8.4 million in cash,  resulting in a gain of approximately $5
                  million.  The Company had  purchased  Pulsarr on March 1, 1996
                  for cash of $6.5  million and notes  payable of $1.3  million.
                  The gain on the sale of  Pulsarr  is  largely  a result of the
                  previous  reduction in the carrying value of AMV's  investment
                  in  Pulsarr  due to  the  $4.9  million  charge  for  acquired
                  in-process  technology  the  Company  recorded  in the quarter
                  ended March 31, 1996 in conjunction with this acquisition.

                  The unaudited  proforma  statement of operations  for the year
                  ended December 31, 1996 and the unaudited  proforma  statement
                  of  operations  for the  quarter  ended  March  31,  1997 were
                  prepared as if the sale had  occurred at the  beginning of the
                  periods presented.  The unaudited proforma balance sheet as of
                  March 31, 1997 was  prepared as if the sale had taken place on
                  March 31, 1997.

                  The unaudited  proforma  financial  information is intended to
                  provide information about the continuing impact of the sale by
                  showing  how  it  might  have  affected  historical  financial
                  statements if it had been consummated at an earlier date. This
                  information is not necessarily indicative of future operations
                  or the actual  results  that would have  occurred had the sale
                  been  consummated  at the  beginning  of the  earliest  period
                  presented. This information should be read in conjunction with
                  the  accompanying  notes to the unaudited  proforma  financial
                  information.


<PAGE>

                       Advanced Machine Vision Corporation
                        Unaudited Proforma Balance Sheet
                                 March 31, 1997
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
(in thousands)
<S>                                                <C>                 <C>                <C>        
                                                                                  Proforma
                                                                     --------------------------------
                                                    Historical       Adjustments (A)        Results
                                                   -----------       ---------------      -----------
ASSETS
Current assets:
     Cash and cash equivalents                     $     2,710         $     7,005        $     9,715
     Accounts receivable, net                            4,931              (2,371)             2,560
     Inventories                                         8,479              (3,576)             4,903
     Prepaid expenses and other assets                     630                (501)               129
                                                   -----------         -----------        -----------

         Total current assets                           16,750                 557             17,307

     Property, plant and equipment, net                  6,297              (1,888)             4,409
     Intangible assets, net                              7,546              (1,500)             6,046
     Other assets                                        1,467                (263)             1,204
                                                   -----------         -----------        -----------

                                                   $    32,060         $    (3,094)       $    28,966
                                                   ===========         ===========        ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Accounts payable                              $     2,378         $    (1,563)       $       815
     Short-term borrowings                                 799                (799)                --
     Accrued liabilities                                 1,621                (630)               991
     Customer deposits                                   2,471              (1,403)             1,068
     Accrued payroll                                       942                  --                942
     Warranty reserve                                      469                 (66)               403
     Current portion of long-term liabilities            1,443                (153)             1,290
                                                   -----------         -----------        -----------

         Total current liabilities                      10,123              (4,614)             5,509
                                                   -----------         -----------        -----------

Long-term liabilities, less current portion             14,551              (3,689)            10,862
                                                   -----------         -----------        -----------

Shareholders' equity:
     Common stock                                       25,986                  --             25,986
     Common stock warrants                               2,403                  --              2,403
     Additional paid in capital                          2,797                  --              2,797
     (Accumulated deficit)                             (23,601)              5,010            (18,591)
     Cumulative translation adjustment                    (199)                199                 --
                                                   -----------         -----------        -----------

         Total shareholders' equity                      7,386               5,209             12,595
                                                   -----------         -----------        -----------

                                                   $    32,060         $    (3,094)       $    28,966
                                                   ===========         ===========        ===========

                See accompanying notes to the unaudited proforma financial information.
</TABLE>
<PAGE>


                       Advanced Machine Vision Corporation
                   Unaudited Proforma Statement of Operations
                      For the Year Ended December 31, 1996
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------

(in thousands, except per share amounts)

                                                                                  Proforma
                                                                     --------------------------------
                                                    Historical       Adjustments (B)        Results
                                                   -----------       ---------------      -----------
<S>                                                <C>                 <C>                <C>
Net sales                                          $    29,938         $     8,432        $    21,506
Cost of sales                                           15,794               5,558             10,236
                                                   -----------         -----------        -----------
Gross profit                                            14,144               2,874             11,270
                                                   -----------         -----------        -----------
Operating expenses:
     Selling and marketing                               4,662                 994              3,668
     Research and development                            4,038                 721              3,317
     General and administrative                          3,549                 798              2,751
     Goodwill amortization                                 633                 100                533
     Charge for acquired in-process
         technology                                      4,915               4,915                 --
     Charge for royalty expense                            647                  --                647
                                                   -----------         -----------        -----------
                                                        18,444               7,528             10,916
                                                   -----------         -----------        -----------
Income (loss) from operations
     before other income and expense                    (4,300)             (4,654)               354
Other income and expense:
     Investment and other income                           190                  21                169
     Interest expense                                   (1,150)               (214)              (936)
                                                   -----------         -----------        -----------
Income (loss) from operations
     before income taxes                                (5,260)             (4,847)              (413)
Provision for (benefit from) income taxes                   --                  --                 --
                                                   -----------         -----------        -----------
Net income (loss)                                  $    (5,260)        $    (4,847)       $      (413)
                                                   ===========         ===========        ===========
Earnings (loss) per share                          $     (0.46)                           $     (0.04)
                                                   ===========                            ===========
Weighted average shares outstanding                     11,486                                 11,486
                                                   ===========                            ===========











                    See accompanying notes to the unaudited proforma financial information.
</TABLE>

<PAGE>


                       Advanced Machine Vision Corporation
                   Unaudited Proforma Statement of Operations
                      For the Quarter Ended March 31, 1997
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------

(in thousands, except per share amounts)

                                                                                  Proforma
                                                                     --------------------------------
                                                    Historical       Adjustments (B)        Results
                                                   -----------       ---------------      -----------
<S>                                                <C>                 <C>                <C>
Net sales                                          $     9,337         $     2,210        $     7,127
Cost of sales                                            4,730               1,403              3,327
                                                   -----------         -----------        -----------
Gross profit                                             4,607                 807              3,800
                                                   -----------         -----------        -----------
Operating expenses:
     Selling and marketing                               1,253                 226              1,027
     Research and development                            1,019                 154                865
     General and administrative                          1,032                 295                737
     Goodwill amortization                                 199                  26                173
                                                   -----------         -----------        -----------
                                                         3,503                 701              2,802
                                                   -----------         -----------        -----------
Income (loss) from operations
     before other income and expense                     1,104                 106                998
Other income and expense:
     Investment and other income                            57                   2                 55
     Interest expense                                     (360)                (67)              (293)
                                                   -----------         -----------        -----------
Income (loss) from operations
     before income taxes                                   801                  41                760
Provision for (benefit from) income taxes                   32                  --                 32
                                                   -----------         -----------        -----------
Net income (loss)                                  $       769         $        41        $       728
                                                   ===========         ===========        ===========
Earnings (loss) per share                          $      0.06                            $      0.06
                                                   ===========                            ===========
Weighted average shares outstanding                     13,086                                 13,086
                                                   ===========                            ===========














                   See accompanying notes to the unaudited proforma financial information.
</TABLE>

<PAGE>



                       Advanced Machine Vision Corporation
                Notes to Unaudited Proforma Financial Information
--------------------------------------------------------------------------------

 (A) To record the sale of Pulsarr for $8.4 million, as summarized below:

     Sales price                                                $     8,400,000
     Less:  estimated transaction costs                                (170,000)
     Less:  basis in stock of Pulsarr                                (3,220,000)
                                                                ---------------

     Gain on sale of Pulsarr                                    $     5,010,000
                                                                ===============



     Cash received from sale                                    $     8,400,000
     Less:  estimated transaction costs                                (170,000)
     Less:  payment of notes payable
        issued in conjunction with purchase of Pulsarr               (1,094,000)
     Less:  payment of intercompany note payable
        to Pulsarr                                                     (131,000)
                                                                ---------------

     Net cash from sale of Pulsarr                              $     7,005,000
                                                                ===============

(B)  To remove the  operations of Pulsarr for the ten months ended  December 31,
     1996 and the quarter ended March 31, 1997.



<PAGE>


                                  Exhibit Index
                                  -------------


     10   Share Purchase Agreement between Barco NV and ARC Netherlands BV dated
          April 29, 1997.





