AST reports Q4 and fiscal year-end results.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)--Aug. 3, 1995--AST 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 :ASTA) Thursday Thursday: see week. announced revenues of $2.468 billion for fiscal year 1995, ended July July: see month. 1, 1995. This compares to revenues of $2.367 billion recorded for fiscal year 1994. The company reported a net loss of $99.3 million and net loss per share of $3.07 for fiscal year 1995, compared to net income of $31.3 million and fully-diluted net income per share of 95 cents posted for fiscal year 1994. Fiscal year 1995 results included fourth quarter revenues of $662.0 million, representing a 13 percent increase over the comparable prior year period. Net loss and net loss per share was $31.6 million and 98 cents, respectively, compared to a net loss of $8.1 million and net loss per share of 25 cents reported during the fourth quarter of fiscal year 1994. "Fiscal year 1995 saw disappointing results," said Safi Qureshey Safi Qureshey (sometimes written Qureshi) is chairman emeritus, cofounder and former CEO of AST Research, Inc., a personal computer manufacturer. He is currently CEO of wireless video technology company Quartics and is involved with several start-up technology companies as an , AST (AST Computer, Irvine, CA) A PC manufacturer founded in 1980 by Albert Wong, Safi Quershey and Tom Yuen (A, S and T). It offered a complete line of PCs that sold through its dealer channel. chairman and chief executive officer. "Manufacturing, new product development and component constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. were key issues addressed during the first three quarters, with lower-than-expected domestic demand and industry pricing pressures experienced during the fourth quarter. However, our international demand remained strong and we have now forged forge 1 n. 1. A furnace or hearth where metals are heated or wrought; a smithy. 2. A workshop where pig iron is transformed into wrought iron. v. a strategic alliance with Samsung that will help position the company for the future." The company also announced it shipped 1,503,000 units during fiscal year 1995, including 1,285,000 desktops and 218,000 notebooks. AST shipped 396,000 units during the fourth quarter, a 14 percent increase over last year's fourth quarter. International Growth Revenue increases during fiscal year 1995 were achieved in large part from growth in worldwide markets. International sales during the period rose 31 percent over fiscal year 1994 to $1.110 billion, including a 40 percent increase in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . Significant year-over-year sales gains were
achieved in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). , Taiwan, Switzerland, Italy, Germany
and the Nordic region. The company expanded its global presence in the
consumer retail market in European Europeanemanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. and Asia/Pacific regions and also maintained its No. 1 market share position in China. AST also was recognized for achieving the second-highest growth rate among top-ten PC manufacturers in Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. International Data Corp. preliminary unit shipment data for the second quarter of calendar year 1995. Fourth quarter fiscal year 1995 international revenues increased 37 percent to $315.9 million. The quarter's total included $195.0 million in Europe and $105.1 million in the company's Asia/Pacific region, representing increases of 41 percent and 33 percent, respectively, over the previous fourth quarter. "The AST brand continues to gain momentum in our European and Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. regions on a year-over-year basis," said Jim Schraith, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "A broad offering of high-quality products, coupled with the ability to deliver from regionalized facilities -- including our new plant in Ireland which ramped-up this year -- has contributed to our ability to grow internationally." Revenues for North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. in fiscal year 1995 declined 11 percent to $1.358 billion as compared to fiscal year 1994. The decline was due in part to AST's decision to de-emphasize sales in the 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, which decreased from $174.1 million in fiscal year 1994 to $21.4 million in fiscal year 1995. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales during the fourth quarter of fiscal year 1995 were $346.1 million, compared to $353.2 million recorded during the prior year period. Lower than expected revenues were caused mainly by slower demand, increased pricing pressures and heightened competition in the domestic retail sector of the market. Balance Sheet Summary At July 1, 1995, total cash and cash equivalents were $95.8 million, with short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings at $156.0 million. Total inventory was $311.5 million, down from $354.7 million at April 1, 1995 and represented inventory turns of 7.8. Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying totaled $394.9 million, which represented 54 days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). . Fiscal Year 1995 Summary Fiscal year 1995 activities included approvals for the recently-completed strategic investment in AST by Samsung Electronics Samsung Electronics (SEC, Hangul:삼성전자; KSE: 005930, KSE: 005935, LSE: SMSN, LSE: SMSD) is a South Korean multinational corporation and the world's largest and leading electronics and information technology company. Co., Ltd. by AST shareholders and the U.S. and Korean governments. The agreements result in an investment of approximately 40 percent in AST, as well as other strategic relationships, including component supply and joint product development, OEM arrangements and cross-licensing of patents. Samsung now holds a total of 17.89 million shares in AST, which includes 5.82 million shares that were acquired in a tender offer from AST stockholders at $22 per share. During the fiscal year, AST also made changes in its organization and management structure to reduce costs and improve product development processes, quality and product availability. The company consolidated mobile systems manufacturing in Taiwan and placed greater emphasis on production and supply management. The structure of AST's sales and marketing efforts were realigned across three geographic regions -- Americas, Europe, Asia/Pacific/Middle East -- with business units organized along the desktop, server and mobile product lines. Each region and business unit is led by its own senior-level executive. Complete product transitions were executed within each business unit, as the company continued to supply its worldwide customer base with the latest technologies. Highlights during the year included new award-winning models to the Ascentia family of notebooks, mid-sized and value-priced Manhattan server systems, Bravo BRAVO Cardiology A clinical trial–Blockade of the GP IIB/IIIA Receptor to Avoid Vascular Occlusion– which evaluated lotrafiban in preventing strokes and acute MI. See GP IIB/IIIA. desktops and Premmia workstations. The company also introduced new models to the Advantage! family of consumer retail systems which contain the fastest Pentium microprocessors This is a list of microprocessors. Intel
During the fourth quarter, AST received industry recognition for its products from several leading publications, including top awards for the Ascentia family from PC World, PC Magazine, Home PC, Byte (BinarY TablE) The common unit of computer storage from desktop computer to mainframe. It is made up of eight binary digits (bits). A ninth bit may be used in the memory circuits as a parity bit for error checking. and other premier magazines. The Advantage! family also received several product honors, including four-star awards from Electronic Entertainment and The New York Daily News New York Daily News Morning daily tabloid newspaper published in New York City. It was founded in 1919 by Joseph Medill Patterson and his cousin Robert McCormick as a subsidiary of the Tribune Co. of Chicago. The first successful tabloid-format newspaper in the U.S. . Corporate Background AST Research AST Research, Inc. was a personal computer manufacturer, founded in Irvine, California in 1980 by Albert Wong, Safi Qureshey and Thomas Yuen. (The name comes from the initials of their first names. Inc., a member of the Fortune 500 list of America's largest industrial and service companies, is one of the world's leading personal computer manufacturers. The company develops PC products ranging from portable systems to superservers sold in more than 100 countries worldwide. Corporate headquarters is located at 16215 Alton Parkway, P.O. Box 57005, Irvine, Calif., 92619-7005. Telephone 714/727-4141 or 800/876-4278. Fax: 714/727-9355. -0-
AST RESEARCH INC.
Condensed Consolidated Balance Sheets
(In thousands)
July 1, July 2,
1995 1994
Assets: Cash and cash equivalents $ 95,825 $ 153,118 Accounts receivable, net 394,927 326,057 Inventories 311,469 333,729 Other current assets 38,911 53,063
Total current assets 841,132 865,967
Property and equipment, net 101,255 103,441 Other assets 79,114 36,212
Total assets $1,021,501 $1,005,620
Liabilities and shareholders' equity:
Current liabilities $ 534,260 $ 420,993
Long-term debt 219,224 215,294
Deferred income taxes and other non-current
liabilities 4,779 7,571
Total liabilities 758,263 643,858
Common stock and additional capital 142,532 141,747 Retained earnings 120,706 220,015 Total shareholders' equity 263,238 361,762
Total liabilities and
shareholders' equity $1,021,501 $1,005,620
-0-
AST RESEARCH, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Quarter Ended Year Ended
(Unaudited)
July 1, July 2, July 1, July 2,
1995 1994 1995 1994
Net sales $ 662,002 $ 584,505 $2,467,783 $2,367,274
Cost of sales 606,887 538,344 2,222,108 2,019,541
Gross profit 55,115 46,161 245,675 347,733
Selling and
marketing 64,174 47,929 233,524 193,053
General and
administrative 16,518 17,077 81,458 74,333
Engineering and
development 8,818 8,632 36,383 38,858
Restructuring credit -- (12,500) -- (12,500)
Operating income
(loss) (34,395) (14,977) (105,690) 53,989
Other income
(expense), net (4,898) 1,623 (17,675) (7,677)
Income (loss) before
taxes (39,293) (13,354) (123,365) 46,312
Provision (benefit)
for taxes (7,662) (5,284) (24,056) 15,003
Net income (loss) $ (31,631) $ (8,070) $ (99,309) $ 31,309
Net income (loss)
per share:
Primary $ (0.98) $ (0.25) $ (3.07) $ 0.96
Fully diluted $ (0.98) $ (0.25) $ (3.07) $ 0.95
Shares used in
computing net
income (loss) per
share:
Primary 32,393 32,330 32,371 32,548
Fully diluted 32,393 32,330 32,371 34,866
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AST RESEARCH, INC.
Computation of Net Income (Loss) per Share
(In thousands, except per share amounts)
Quarter Ended Year Ended
Ended
(Unaudited)
July 1, July 2, July 1, July 2,
1995 1994 1995 1994
Shares used in computing primary earnings (loss) per share: Weighted average shares of common stock outstanding 32,393 32,330 32,371 31,921 Effect of stock options treated as common stock equivalents under the treasury stock method -- -- -- 627 Weighted average common and common equivalent shares outstanding 32,393 32,330 32,371 32,548 Net income (loss) $(31,631) $ (8,070) $(99,309) $ 31,309 Net income (loss) per share - primary $ (0.98) $ (0.25) $ (3.07) $ 0.96 Shares used in computing fully diluted earnings (loss) per share: Weighted average shares of common stock outstanding 32,393 32,330 32,371 31,921 Effect of stock options treated as equivalents under the treasury stock method -- -- -- 685 Shares assumed issued on conversion of Liquid Yield Option Notes -- -- -- 2,260 Weighted average common and common equivalent shares outstanding 32,393 32,330 32,371 34,866 Net income (loss) Net income (loss) - primary earnings per share $(31,631) $ (8,070) $(99,309) $ 31,309 Adjustment for interest on LYONs, net of tax -- -- -- 1,950 Adjusted net income (loss) - fully diluted earnings (loss) per share $(31,631) $ (8,070) $(99,309) $ 33,259 Net income (loss) per share - fully diluted $ (0.98) $ (0.25) $(3.07) $ 0.95 CONTACT: AST Research, Irvine, Calif. Emory Epperson, Media Contact 714/727-7958 or Misty mist·y adj. mist·i·er, mist·i·est 1. Consisting of or marked by mist: a misty rain; a misty night. 2. Ohmart, Analyst Contact 714/727-7728 |
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