ALR Reports Sales Growth but a Slack 1st Quarter : Technology: The Irvine personal computer manufacturer might have lower year-to-year sales and an earnings dip, chairman says.

Computer maker Advanced Logic Research Inc. reported strong growth in sales and earnings for its fiscal year ended Sept. 30 but cautioned that business has been slackening during the current quarter.

For the first time since the company went public in April, 1990, Chairman Gene Lu warned that the manufacturer of personal computers might report lower year-to-year sales and a quarterly earnings decline. The first quarter ends Dec. 31.

Lu said sales during the first six weeks of the quarter are below those of a year ago.

ALR stock closed Wednesday at $11.25 a share, down $1.25 in over-the-counter trading.

For the year, AST’s sales grew 33%, to $228 million from $172 million a year earlier. Earnings rose 28%, to $14.7 million or $1.40 a share; a year earlier, they were $11.5 million or $1.38 a share.

The company reported strong fourth-quarter results. Sales increased 30%, to $65.3 million from $50.2 million a year earlier. Earnings were up 59%, to $4.3 million or 37 cents a share, from $2.7 million or 27 cents a share.

Analysts said the fourth-quarter results were stronger than expected, considering the recession and poor financial results reported by competitors.

Lu said ALR dealers have been placing fewer orders this quarter, despite brisk sales of current inventory. Sales to major retail chains accounted for 28% of revenue for the year, up sharply form 4% a year earlier, because the company signed up such new retailers as Computerland.

Lu said 30% price cuts introduced earlier this month on 11 ALR models should boost revenues during the current quarter.

James Richardson, chief financial officer of ALR, said the company does not expect to report a loss for the current quarter.

The price cuts and slowdown in orders could mean flat sales and lower profits for ALR this quarter, said Richard Martin, analyst with Prudential-Bache Securities in New York.

But he said it is too early to say whether ALR is finally being affected by a slump in consumer buying because of the recession: “They’ve just had a great quarter, but the outlook isn’t good for the coming quarter. It is hard to tell, but the current problem may be a one-quarter phenomenon.”

Martin said the company can expect to face tougher competition with Compaq, which last week lowered prices on some computers to better compete with such companies as ALR and AST Research Inc. in Irvine.

ALR is counting on some new products--computers for corporate networks and a line of portable notebook computers--to spur growth in 1992, Lu said.

ALR’s Performance

Advanced Logic Research reported a 28% gain in net income for the fiscal year ended Sept. 30, to $14.7 million from $11.5 million the year before. Sales were up 33%, to $228 million from $172 million.

Figures are in thousands, except per-share data.

4th Qtr 4th Qtr 12 Months 12 Months 1991 1990 1991 1990 Revenue $65,333 $50,181 $227,954 $171,994 Net income (loss) 4,266 2,677 14,725 11,506 Per share (loss) $0.37 0.27 $1.40 $1.38

Source: Advanced Logic Research Inc.