AST Research, IRVINE
Nature of Business: Manufactures and distributes personal computers. Total Employees: 3,441
In Orange County: 1,500 Stock Listing in The Times: On NASDAQ as “AST”
Ticker Symbol: “ASTA”
Friday’s Stock Close: $18.25
One-week Change: Up $0.25 Analyst Review: “AST is a good low-cost producer of computers. It has done a good job covering themselves in a lot of distribution networks. AST’s revenue and earnings growth has been impressive. In fiscal 1991, the company had a 29% revenue and a 51% earnings growth; for the fiscal year ending in June it looks as if it will have a 38% revenue growth and a 1% increase in earnings. The dramatic drop in earnings growth is due to the decline in gross profits margin because of competitive pricing within the industry. But AST has done a very good job managing declining prices of PCs. It’s not uncommon to see 15% to 20% price cuts every six months or so. Currently, we have a hold on the stock . . . though we continue to believe they’re very well positioned for the long term.” -- Mary G. Meeker, analyst, Morgan Stanley & Co., New York
SALES and PROFITS Dollar amounts in millions
3 Qtrs. 3 Qtrs. ’89 ’90 ’91 ’91 ’92 Sales 456.5 533.8 688.5 477.4 677.8 Profits -7.5 35.1 64.7 44.3 49.9
Corporate Outlook: “AST is a very focused company. We are bringing information processing power outside the Fortune 500 companies into what I call the ‘Fortune 5 million’ companies. We have had a strategy to make sure our products are affordable. We don’t want them to buy from no-name, offshore firms. The next century will be the age of information. And we will continue to be a catalyst for providing enabling technology for development.”
-- Safi U. Qureshey, president / CEO
RETURN INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE
Fiscal year ending June 30 June 30 June 30 3 Qtrs. ’89 ’90 ’91 ’91 52-Week High $7.88 $12.81 $29.25 $26.25 52-Week Low $3.44 $3.63 $8.00 $8.00 Book Value Per Share $9.38 $12.63 $9.34 $8.69 Price Per Share $4.38 $11.94 $20.25 $27.25 Net Earnings (Loss) Per Share* ($0.32) $1.43 $2.13 $1.48 Price-to-Earnings Ratio N/A 8:1 10:1 15:1 Avg. Return on Investor Equity N/A 18% 23% 17%
Fiscal year ending 3 Qtrs. ’92 52-Week High $32.50 52-Week Low $14.50 Book Value Per Share $10.81 Price Per Share $17.75 Net Earnings (Loss) Per Share* $1.57 Price-to-Earnings Ratio 9:1 Avg. Return on Investor Equity 15%
* Information has been restated to reflect a two-for-one stock split effective Jan. 31, 1991.For more information call or write, AST Research Inc.: 16215 Alton Parkway, Irvine, Calif. 92713-9658. (714) 727-4141 Source: AST Research Inc.
