ALR Lands Deal With Computer Retail Chain
Advanced Logic Research Inc., the Irvine personal computer maker, said Wednesday that it has signed its first deal with a major retail chain, while at the same time reporting a 7% increase in earnings for its latest quarter.
ALR computers will now be sold in the 440 stores owned by Intelligent Electronics, an Exton, Pa.-based retail chain that owns Todays Computers Business Centers and Entre Computer Centers. The Pennsylvania firm could add 400 outlets if its pending acquisition of the Connecting Point of America chain is completed.
For the record:
12:00 a.m. May 4, 1990 For the Record
Los Angeles Times Friday May 4, 1990 Orange County Edition Business Part D Page 2 Column 6 Financial Desk 2 inches; 42 words Type of Material: Correction
Advanced Logic Research--The net earnings of Advanced Logic Research for the second quarter last year were stated incorrectly Thursday. The company reported net earnings of $3.2 million for the second quarter ended March 31, a 357% gain over net earnings of $700,000 in the same period a year ago.
“This deal opens doors for ALR’s name exposure and a new channel of distribution,” said Dave Kirkey, ALR’s vice president of marketing. “It will bring a new level of credibility for us in the computer industry. We’re not just another clone, not just another box.”
Under the two-year agreement, Intelligent Electronics will be the exclusive national franchise retailer for ALR’s line of personal computers.
In the past, ALR computers have been sold primarily through a group of about 1,000 resellers and through individual agreements with computer stores. Kirkey said the deal with Intelligent Electronics could help sales in the reseller channel by boosting the company’s name recognition. Intelligent Electronics reported revenue of $700 million last year.
Also Wednesday, ALR reported its quarterly results for the first time since going public on April 11. For the second quarter ended March 31, the company reported net income of $3.2 million, up 7% compared to $3 million for the year-ago period. Sales were a record $44.8 million, up 207% from $14.6 million a year ago.
For the six months ended March 31, the company reported net income of $6.2 million on revenue of $84.3 million, contrasted with net income of $1.5 million on revenue of $27.5 million a year earlier.
Kirkey attributed the improved second-quarter results to growing acceptance of the company’s top-of-the-line computers.
He said the figures do not reflect sales resulting from another agreement announced two weeks ago in which a national distributor, Softsel/Microamerica, agreed to sell ALR’s line of computers.
The company’s underwriters for its stock offering, PaineWebber and Prudential-Bache Capital Funding, announced Wednesday that they would exercise their option to issue 450,000 additional shares of common stock.
After the offering, about 36.9% of ALR’s stock will be in the public’s hands.
The offering will yield about $5.4 million in proceeds for ALR, bringing its total proceeds from going public to $36.8 million.
