ADVANCED LOGIC RESEARCH REPORTS ITS BEST QUARTER IN OVER FOUR YEARS.IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--Jan. 16, 1996--Advanced Logic Research, 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 :AALR AALR American Association for Leisure and Recreation AALR General Company for Land Reclamation, Development and Reconstruction (stock symbol) ) Tuesday Tuesday: see week. reported a significant increase (264%) in net income to $2.4 million, or $0.20 per share, for its first quarter of fiscal 1996 compared to net income of $0.6 million, or $0.06 per share, for the same quarter of fiscal 1995. Revenue increased 25% to $57.1 million for the first quarter of fiscal 1996 compared to $45.7 million in the same quarter of fiscal 1995. In its immediately preceding quarter ended September 30, 1995, ALR ALR Administrative License Revocation ALR Agricultural Land Reserve (Canada) ALR Automatic Locking Retractor (seat belts) ALR Australian Law Reports (University of Tasmania Library) reported revenue of $53.4 million and net income of $2.0 million, or $0.17 per share. The increase in first quarter fiscal 1996 revenue was primarily attributable to a 76% increase in sales made directly to large domestic and OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers. Sales to these customers increased by $8.3 million to $19.1 million compared to the first quarter of fiscal 1995. As a result, ALR's U.S. sales were 62% of revenue compared to 52% for the first quarter of fiscal 1995. ALR's Chairman of the Board and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Gene Lu stated, "Our high-end, early-to-market, product strategy combined with a streamlining of ALR's worldwide operations has fueled the Company's continued improvement in operating performance. We remain very focused on being a technology-based company and, earlier today, demonstrated our leadership position in the industry by becoming the first PC manufacturer to offer 166-MHz Pentium CPUs across our entire line-up of high-end Pentium-based multi-processor servers. Earlier in January, we announced a value priced mini-tower PC, the ALR EVOLUTION 6, utilizing Intel's Pentium Pro The sixth generation of the Intel x86 family of CPU chips. The term may refer to the chip or to a PC that uses it. Introduced in 1995 as the successor to the Pentium, models from 150 MHz to 200 MHz were released. chip. This system complements ALR s dual processor ready Pentium Pro chip-based system, the ALR EVOLUTION DUAL6, which was announced on November 1, 1995, the day Intel announced its new Pentium Pro processor." The Company's focus on high-end server and desk-top products has resulted in an increase in average system selling price to $2,183 per system in the first quarter of fiscal 1996 compared to $1,858 per system in the year-ago quarter and $2,101 per system in the immediately preceding quarter ended September 30, 1995. This improvement in system mix contributed to an increase in ALR s gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. to 20.9% in the first quarter of fiscal 1996 compared to 17.6% and 19.3% for the quarters ended December 31, 1994 and September 30, 1995, respectively. The Company's 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. as a percentage of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight declined to 16.5% in the first quarter of fiscal 1996 compared to 16.9% in the first quarter of fiscal 1995. However, the Company's selling, general and administrative expenses increased by $1.4 million to $6.7 million, primarily due to an increase in discretionary advertising and promotion expenses related to new product introductions. ALR's net cash position (cash less bank debt) totaled $45.4 million at December 31, 1995 compared to $46.6 million at September 30, 1995. For the first quarter of fiscal 1996, the Company's inventory turns equaled 5.4 and average sales days outstanding in receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed were 44 days compared to 6.5 turns and 50 days for the first quarter of fiscal 1995. ALR's Vice President & CFO See Chief Financial Officer. , Ron Sipkovich noted, "ALR's improving operating performance and strong balance sheet was recognized by Dun & Bradstreet, who last week raised the Company's credit rating to 5A1 the highest rating provided to the most creditworthy cred·it·wor·thy adj. Having an acceptable credit rating. cred  it·wor companies."Founded in 1984, ALR is an industry leader in the design, manufacture, marketing and support of computer systems targeted at the client/server and desktop markets. ALR's comprehensive portfolio of upgradeable, affordably priced products includes sophisticated multiprocessor Multiple processors. A multiprocessor machine uses two or more CPUs for routine processing. See multiprocessing. multiprocessor - parallel processing network servers, high-performance workstations, desktop PCs, Pentium processor add-on A purchase of additional goods before payment is made for goods already purchased. An add-on may be covered by a clause in an installment payment contract that allows the seller to hold a security interest in the earlier goods until full payment is made on the later goods. products and multimedia option kits. ALR markets its products through a worldwide network of VARs, dealers and distributors. The Company also sells direct through ALR's PrimeLine, which can be reached by dialing 800/444-4ALR. Note To Editors: Pentium and Pentium Pro are trademarks of Intel Corporation (company) Intel Corporation - A US microelectronics manufacturer. They produced the Intel 4004, Intel 8080, Intel 8086, Intel 80186, Intel 80286, Intel 80386, Intel 486 and Pentium microprocessor families as well as many other integrated circuits and personal computer networking . -0-
ADVANCED LOGIC RESEARCH, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
(unaudited)
December 31, September 30,
ASSETS 1995 1995
Cash $46,856 $46,580
Accounts receivable, net 27,978 26,524
Inventories, net 33,786 27,088
Other current assets 3,403 3,550
Total current
assets 112,023 103,742
Equipment, furniture
and fixtures, net 2,901 2,764
Other assets 510 714
Total assets $115,434 $107,220
LIABILITIES AND STOCKHOLDERS' EQUITY
Bank debt $ 1,415 $ ---
Other current liabilities 28,149 23,971
Total liabilities 29,564 23,971
Common stock and additional
paid-in capital 55,064 54,792
Retained earnings 30,806 28,457
Total stockholders'
equity 85,870 83,249
Total liabilities
and stockholders'
equity $115,434 $107,220
ADVANCED LOGIC RESEARCH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
(unaudited)
Three Months Ended
December 31,
1995 1994
Net sales $ 57,139 $ 45,718 Cost of sales 45,218 37,665 Gross profit 11,921 8,053
Operating expenses:
Selling, general and
administrative 6,712 5,318
Engineering, research
and development 1,270 1,116
Royalty expense, net 1,429 1,310
Total operating expenses 9,411 7,744
Operating income 2,510 309
Interest income, net 637 557
Income before taxes 3,147 866
Provision for income taxes 787 217
Net income $ 2,360 $ 649
Net income per common and common equivalent share $ 0.20 $ 0.06 Common and common equivalent shares used in per share calculation 12,027 11,555 CONTACT: Advanced Logic Research Inc. Ron Sipkovich, 714/581-6770 or Vic Sial sial: see continent. , 714/581-6770, ext. 4458 |
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