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ADVANCED LOGIC RESEARCH ANNOUNCES FINANCIAL RESULTS FOR ITS SECOND FISCAL QUARTER AND EXPANDED DISTRIBUTION CHANNEL STRATEGY

 ADVANCED LOGIC RESEARCH ANNOUNCES FINANCIAL RESULTS


FOR ITS SECOND FISCAL QUARTER AND EXPANDED DISTRIBUTION CHANNEL STRATEGY
 IRVINE, Calif., April 29 /PRNewswire/ -- Advanced Logic Research Inc. (NASDAQ: AALR) today announced revenue of $56.4 million for its second fiscal quarter ended March 31, 1992, a 14 percent increase from the $49.4 million reported for its first fiscal quarter ended Dec. 31, 1991. Net income of $933,000 ($.08 per share), based on 11.4 million shares, was up 102 percent from the $462,000 ($.04 per share) reported in the December quarter. In the similar period a year ago, revenue was $60.3 million and net income was $4.0 million ($.40 per share), based on 10.0 million shares. "We have been successful in strengthening our balance sheet during the first half of our fiscal year," said Gene Lu, chairman, president and chief executive officer. "During this period, our cash position increased by $14.0 million to $37.4 million at March 31, 1992, and we were able to reduce inventories by $12.3 million to $36.5 million.
 "The enthusiastic acceptance of our new PowerFlex Flyer 386SX 25-MHz upgradable ISA product line by our channel partners contributed to the increase in our sales over the December quarter," Lu continued. "Shipments of the PowerFlex Flyer reached 8,300 units in the March quarter and sales of the PowerFlex product family totaled $17.9 million. Sales of our i486DX systems grew to $20.2 million, up from $18.4 million in the December 1991 quarter, and $10.6 million in the March 1991 quarter. Although gross margins for the quarter remained depressed at 22 percent of sales, they increased to approximately 25 percent in the month of March.
 "Our international sales grew to a record $25.3 million (45 percent of total sales), compared to $20.2 million in our December 1991 quarter, and $15.3 million in the March 1991 quarter," Lu added.
 "Following the success of the ALR PowerFlex Flyer, we recently introduced nine new Flyer Systems: the ALR Flyer 32DT Series which consists of four models starting at $1,495 for an i486SX/20 CPU and the ALR Flyer 32LCT Series, which consists of three tower style models starting at $2,295 for an i486SX/25 CPU-based machine. These systems utilize ALR's unique CPU upgrade technology and advanced 32-bit memory/data path architecture. ALR also introduced two models of the ALR Flyer MPC, a multimedia product. These new systems strategically position ALR with some of the most competitive high volume entry-level systems in the industry," said Lu. "With volume shipments of the Ranger M, the industry's first fully upgradable i486 notebook computer starting this quarter, I feel we have positioned the company to address the needs of the current marketplace."
 "The enthusiastic reception by end-users of our new entry-level Flyer Series has caused us to focus on the dynamics of this segment of the PC marketplace. Our extensive network of VARs and resellers provide exceptional service and support in their particular areas of expertise. However, there are huge untapped markets, either geographically or philosophically, not targeted by these resellers. We have concluded that to best service the needs of these end-users, we will add the capacity of selling direct. To ensure that this new focus will be complimentary to our current sales channels, we will price the products sold in this manner at list price. We are in the process of expanding our sales, service and support capabilities to aggressively attack this market," concluded Lu.
 For the six-month period ended March 1992, revenue was $105.7 million, and net income was $1.4 million in comparison with revenue of $110.2 million and net income of $7.1 million for the six- month period ended March 1991.
 ALR's comprehensive portfolio of products includes entry-level PCs, high-performance workstations and sophisticated, multi-processor network servers, all of which support the major operating systems and networking protocols. Utilizing a unique, modular approach to performance upgrading, ALR has become known as an industry leader in CPU technology. The company markets its products through a worldwide network of distributors, resellers and major retail organizations.
 ADVANCED LOGIC RESEARCH INC.
 Consolidated Condensed Balance Sheets
 (In thousands)
 (Unaudited)
 March 31, Sept. 30,
 1992 1991
 Assets:
 Cash $37,419 $23,377
 Accounts receivable, net 37,546 48,102
 Inventory, net 36,528 48,831
 Other 9,009 9,720
 Total current assets 120,502 130,030
 Property and equipment, net 6,039 5,682
 Other assets 433 483
 Total assets $126,974 $136,195
 Liabilities and stockholders'
 equity:
 Current liabilities $29,996 $38,791
 Long-term debt 7,500 9,000
 Deferred taxes 2,011 2,493
 Total liabilities 39,507 50,284
 Common stock and additional
 paid-in capital 53,014 52,948
 Retained earnings 34,453 32,963
 Total stockholders' equity 87,467 85,911
 Total liabilities and stockholders'
 equity $126,974 $136,195
 ADVANCED LOGIC RESEARCH INC.
 Consolidated Statements of Income
 (In thousands, except per share data)
 (Unaudited)
 Three Months Ended Six Months Ended
 March 31, March 31,
 1992 1991 1992 1991
 Net sales $56,380 $60,330 $105,734 $110,163
 Cost of sales 43,998 42,079 82,703 77,712
 Gross profit 12,382 18,251 23,031 32,451
 Operating expenses:
 Selling, general and
 administrative 8,462 8,511 16,246 14,972
 Engineering, research
 and development 1,330 957 2,682 1,861
 Royalty expense,
 net 1,228 1,682 2,070 2,879
 Total operating
 expenses 11,020 11,150 20,998 19,712
 Operating income 1,362 7,101 2,033 12,739
 Interest (income)
 expense, net (217) (52) (292) (186)
 Income before minority
 interest and income
 taxes 1,579 7,153 2,325 12,925
 Minority interest 0 123 0 448
 Income before income
 taxes 1,579 7,030 2,325 12,477
 Income taxes 646 3,019 930 5,379
 Net income $933 $4,011 $1,395 $7,098
 Net income per common
 and common
 equivalent share $0.08 $0.40 $0.12 $0.71
 Common and common
 equivalent shares
 used in per share
 calculation 11,428 10,008 11,486 9,932
 -0- 4/29/92
 /CONTACT: James T. Richardson, VP, CFO, 714-581-6770, or Randi Baker, investor relations, 714-581-6770, ext. 458, of Advanced Logic Research/
 (AALR) CO: Advanced Logic Research Inc. ST: California IN: CPR SU: ERN


CH-AL -- LA025 -- 4599 04/29/92 17:05 EDT
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