ADVANCED LOGIC RESEARCH ANNOUNCES REVENUE AND EARNINGS
FOR ITS 1991 FISCAL YEAR
IRVINE, Calif., Nov. 13 /PRNewswire/ -- Advanced Logic Research Inc. (NASDAQ: AALR) today announced record revenue of $228.0 million for the fiscal year ended Sept. 30, 1991 and $65.3 million for the fourth quarter of fiscal 1991. This reflects an increase of 33 percent over revenue of $172.0 million for fiscal year 1990 and 30 percent over the $50.2 million for the fourth quarter of fiscal 1990.
Net income was $14.7 million ($1.40 per share) for fiscal 1991, compared to $11.5 million ($1.38 per share) for the prior fiscal year. Net income for the fourth quarter of fiscal 1991 increased 59 percent to $4.3 million ($.37 per share), compared to $2.7 million ($.27 per share) for the fourth quarter of fiscal 1990. Weighted average shares outstanding for fiscal 1991 were 10.5 million in comparison with 8.3 million for fiscal 1990. Weighted average shares outstanding for the fourth quarter of fiscal 1991 were 11.5 million, in comparison with 10.0 million in the prior-year period.
For the year, distributors accounted for 30 percent of ALR's worldwide revenue and dealers and resellers contributed 42 percent of ALR's revenue. Sales to major computer store chains grew by $59 million and accounted for 28 percent of worldwide revenue in fiscal 1991, up from only 4 percent of revenue in the prior fiscal year. International sales remained stable at 33 percent of worldwide revenue for fiscal 1991.
In fiscal 1991, revenue from EISA-based systems grew to $128 million, or 56 percent of revenue, as compared to $31 million or 18 percent of revenue for fiscal 1990. Sales of i386DX and i486SX systems totaled $97 million, or 43 percent of revenue, and sales of i486DX systems totaled $40 million or 18 percent of revenue in fiscal 1991.
In addition to lower vendor component costs, the migration to more powerful microprocessors and to EISA-based systems resulted in the improvement of gross margins for fiscal 1991 to 29.4 percent from 27.9 percent in fiscal 1990. ALR's gross margins for the fourth quarter of fiscal 1991 improved to 28.8 percent, in comparison to 24.5 percent reported in the fourth quarter of fiscal 1990.
"We are extremely satisfied with our revenue and profitability growth this year," said Gene Lu, chairman, president and chief executive officer. "We believe this reflects ALR's aggressive penetration of the major computer store channel, our continuing strategy of introducing and delivering aggressively priced state-of- the-art upgradable systems and continuing expansion in the international arena."
The company recently demonstrated two industry firsts at COMDEX '91: the first dual 50-MHz i486DX EISA-based server, the POWERPRO ARRAY, and the first 32-bit 25-MHz i486DX modular upgradable notebook, the VIP M. The company expects to ship its notebook product by the end of the first calendar quarter of 1992.
"On a more cautionary note, the successful introduction of these product lines and strong sales of our BusinessVEISA and PowerFlex families are crucial to our outlook for 1992," said Lu. "Because sales of our existing products in the current quarter-to-date are lower than sales for the corresponding period in the previous quarter, and there is no immediate indication of significant increases in demand from our sales channel partners, revenue and earnings for the quarter ending Dec. 31, 1991 are expected to be lower than the amounts reported for the fourth quarter of fiscal 1991. Revenue could approximate the amount achieved for the quarter ended Dec. 31, 1990. At that revenue level, net income would be below the level earned in the year-ago quarter, principally as a result of higher operating expense levels."
The company continued its aggressive high-end pricing strategy by reducing pricing on its 33-MHz i486DX Model 101 to $1,995 early in November. "After much discussion with our distribution partners, ALR concluded that with sales of systems based on the 50-MHz i486DX microprocessor steadily increasing and the double-clocking' 66-MHz i486DX microprocessors on the horizon, while 33-MHz i486DX component costs are decreasing, now is the time to focus on capturing market share by making 33-MHz i486DX technology affordable," said Lu. "ALR is strategically positioned to take advantage of the rapid pace of change in the microprocessor arena through its award-winning Just Upgrade the CPU!' philosophy."
The company and its products have been singled out for praise by the computer industry press and by business and financial media. Earlier this month, Forbes magazine chose ALR as No. 8 on its list of "The 200 Best Small Companies" in the United States. Last month, Fortune magazine ranked the company as No. 25 on its list of "America's 100 Fastest Growing Companies." ALR's comprehensive portfolio of products includes entry-level PC's, high-performance workstations and sophisticated, dual-processor network servers, and supports 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 computer store chains.
ADVANCED LOGIC RESEARCH INC.
Consolidated Statements of Income
(In thousands, except per share amounts)
Three Months Ended 12 Months Ended
Sept. 30, Sept. 30,
1991 1990 1991 1990
Net sales $65,333 $50,181 $227,954 $171,994
Cost of sales 46,493 37,882 160,857 124,044
Gross profit 18,840 12,299 67,097 47,950
Selling, general and
administrative 9,858 5,352 32,922 20,122
and development 1,318 990 4,321 3,214
net 1,077 1,161 5,050 3,667
expenses 12,253 7,503 42,293 27,003
Operating income 6,587 4,796 24,804 20,947
expense, net (93) (199) (390) 509
Income before minority
interest and income
taxes 6,680 4,995 25,194 20,438
Minority interest 0 279 447 1,022
Income before income
taxes 6,680 4,716 24,747 19,416
Income taxes 2,414 2,039 10,022 7,910
Net income $4,266 $2,677 $14,725 $11,506
Net income per common
equivalent share $0.37 $0.27 $1.40 $1.38
Common and common
used in per share
calculation 11,485 10,005 10,483 8,343
ADVANCED LOGIC RESEARCH INC.
Consolidated Condensed Balance Sheets
Sept. 30, Sept. 30,
Cash and cash equivalents $23,377 $31,433
Trade accounts receivable, net 48,102 32,205
Inventory, net 48,831 35,437
Other 9,720 4,320
Total current assets 130,030 103,395
Equipment, furniture and
fixtures, net 5,682 3,191
Other assets 483 240
Total assets $136,195 $106,826
Liabilities and stockholders'
Current liabilities $38,792 $37,975
Long-term debt, excluding
current portion 9,000 12,000
Deferred income taxes 2,493 184
Total liabilities 50,285 50,159
Minority interest in subsidiary 0 2,080
Common stock and additional paid-in
capital 52,948 36,618
Retained earnings 32,962 17,969
Total stockholders' equity 85,910 54,587
Total liabilities and stockholders'
equity $136,195 $106,826
/CONTACT: James T. Richardson, VP, CFO, or Randi Baker, investor relations, 714-581-6770, of Advanced Logic Research/
(AALR) CO: Advanced Logic Research Inc. ST: California IN: CPR SU: ERN KJ-SE -- LA017 -- 4044 11/13/91 14:54 EST