ALR reports net income increase of 58% for its second quarter of fiscal 1997.IRVINE, Calif.--(BUSINESS WIRE)--April 16, 1997--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) ) Wednesday reported an increase of 58% in net income to $3.2 million, or $0.25 per share, for its second quarter of fiscal 1997, compared with net income of $2.0 million, or $0.17 per share, for the second quarter of fiscal 1996. 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 were $55.4 million for the second quarter of fiscal 1997, compared with $55.0 million for the second quarter of fiscal 1996. In its preceding quarter ended Dec. 31, 1996, 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 $56.4 million and net income of $3.2 million, or $0.25 per share. Net income for the first six months of fiscal 1997 increased 46% to $6.4 million, $0.50 per share, compared with income of $4.4 million, $0.36 per share, for the six months ended March 31, 1996. Revenue for the six months ended March 31, 1997, was $111.8 million, compared with $112.2 million for the year-ago period. The $0.4 million increase in revenue in the second quarter of fiscal 1997, compared with the second quarter of fiscal 1996 was primarily due to higher sales to ALR's 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 channel. Revenue to the company's OEM channel increased to $14.8 million, compared with $5.1 million in the year-ago quarter and $9.2 million in the preceding quarter ended Dec. 31, 1996. The company's high-end server sales represented 53% of revenue, compared with 29% of revenue for the year-ago quarter and 50% of revenue for the preceding quarter. ALR's U.S. sales represented 65% of revenue for the first six months of fiscal 1997, compared with 62% for the comparable year-ago period. "In March, ALR delivered the industry's first beyond four-way, scaleable architecture Pentium Pro-based server -- the ALR Revolution 6X6," said ALR's Chairman 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. Eugene Lu. "This flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. has already received excellent reviews from InfoWorld, PC Week magazine and Information Week in the U.K. While conducting their benchmarking tests, InfoWorld reported a performance increase of 34% when moving from four to six CPUs and PC Week calculated a 27% performance improvement over the results achieved by a four-processor PowerEdge 6100 server by Dell Computer Corp. "March also marked ALR's entry into the fast-growing remote access market with the first shipments of its ISDN router A device that enables several users on a network to access the Internet via ISDN. Also known as an ISDN LAN modem, it contains a BRI ISDN port and an Ethernet port. It may also provide several Ethernet ports, which lets it serve as a central Ethernet hub for a small workgroup. , the Autobahn. "Additionally, we were very pleased with recently completed TPC-C A benchmark that measures overall transaction processing performance. See TPC. benchmark tests in which the ALR Revolution Quad6, a scaleable four-way 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. based server, was placed among the top three worldwide price/performance leaders in the highly competitive market for database, application and PC LAN (1) A network of IBM or IBM-compatible PCs. (2) A network of any variety of computers. servers. The ALR Revolution Quad6 was also named the recipient of InfoWorld's 1996 Product of the Year award in the application server category," concluded Mr. Lu. The company's focus on high-end server and desk-top products resulted in an average system selling price of $2,376 in the second quarter of fiscal 1997, compared with $2,143 per system in the year- ago quarter and $2,536 in the preceding quarter ended Dec. 31, 1996. The 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 23.7% in the second quarter of fiscal 1997, compared with 21.0% in the year-ago quarter and 23.6% in the preceding quarter. 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 were 16.2% in the second quarter of fiscal 1997, compared with 17.3% in the year-ago quarter. As a result of the improvement in gross margin and lower operating expenses the company's net margin improved to 5.7% for the second quarter of fiscal 1997, compared with 3.7% for the year-ago quarter and 5.7% in the preceding quarter. ALR's cash position totaled $58.1 million at March 31, 1997, compared with $60.3 million at Sept. 30, 1996. For the second quarter of fiscal 1997, the company's inventory turns equaled 5.8 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 48 days, compared with 6.2 turns and 51 days for the second quarter of fiscal 1996. Founded in 1984, ALR is a pioneer in open multiprocessor Multiple processors. A multiprocessor machine uses two or more CPUs for routine processing. See multiprocessing. multiprocessor - parallel processing Intel-based PC servers, with design, manufacturing, marketing and support targeted at the client/server and high-end desk-top market. ALR's comprehensive portfolio consists of sophisticated multiprocessor network servers, high-performance workstations and personal computers. 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. Information on the company and its products is available at ALR's Web site located at http://www.alr.com . Statements contained in this news release which are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. All forward-looking statements are predictions that are subject to risks and uncertainties, and actual events or results may differ materially from those projected. Such risks and uncertainties are discussed more fully in the documents that the company files from time to time with the Securities and Exchange Commission, including the company's most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . -0-
ADVANCED LOGIC RESEARCH INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
(unaudited)
March 31, Sept. 30,
ASSETS 1997 1996
Cash & cash equivalents $58,147 $60,272
Accounts receivable, net 29,504 25,849
Inventories, net 29,357 23,437
Other current assets 5,599 5,857
Total current assets 122,607 115,415
Equipment, furniture and fixtures, net 3,229 2,760
Other assets 2,650 465
Total assets $128,486 $118,640
LIABILITIES AND STOCKHOLDERS' EQUITY
Bank debt $ -- $ --
Other current liabilities 24,000 21,862
Total liabilities 24,000 21,862
Common stock and additional
paid-in capital 60,010 58,047
Retained earnings 44,476 38,731
Total stockholders' equity 104,486 96,778
Total liabilities and stockholders'
equity $128,486 $118,640
ADVANCED LOGIC RESEARCH INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share data)
(unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
1997 1996 1997 1996
Net sales $55,387 $55,047 $111,803 $112,186
Cost of sales 42,276 43,489 85,404 88,707
Gross profit 13,111 11,558 26,399 23,479
Operating expenses:
Selling, general and
administrative 6,253 6,228 12,875 12,940
Engineering, research
and development 1,453 1,373 2,956 2,643
Royalty expense, net 1,280 1,902 2,571 3,331
Total operating expenses 8,986 9,503 18,402 18,914
Operating income 4,125 2,055 7,997 4,565
Interest income, net 756 630 1,600 1,267
Income before taxes 4,881 2,685 9,597 5,832
Provision for income taxes 1,708 671 3,217 1,458
Net income $3,173 $2,014 $6,380 $4,374
Net income per common and
common equivalent shares $ 0.25 $ 0.17 $ 0.50 $ 0.36
Common and common equivalent
shares used in per-share
calculation 12,831 12,107 12,798 12,066
CONTACT: Advanced Logic Research Inc., Irvine Ron Sipkovich or Vic Sial sial: see continent. , 714/581-6770 Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the : vicsi@alr.com |
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