Alpha Microsystems, Santa Ana

Nature of Business: Designs, manufactures, markets and services milti-user computer hardware and software products

Total employees: 330

In Orange County: 195

Stock listing in The Times: On NASDAQ as “AlpMic”

Ticker Symbol: “ALMI”

Friday’s Close: $1.50

One-week Change: Down $0.13

Analyst Review: “Alpha Micro has gone through a lot changes recently and is still in a state of flux. There was a big loss in fiscal 1991, which reduced its net worth, and there have been changes in top management and turmoil in the computer industry generally. Who will be the survivors providing the right services is very much up for grabs. Alpha Micro is in an intriguing position. It has little long-term debt and an apparently adequate cash position. On the downside, clearly the company hasn’t been consistently profitable in recent years. But considerings its depressed stock price--of $1.50-- per share, and a book value of $5.30 at the beginning of the year, there is a lot of upside potential.

--Sheldon Grodsky, Director of Research, Grodsky Associates, South Orange, New Jersey

SALES VS. PROFITS

(Dollar amounts in millions)

Fiscal year ending Feb. 25 Feb. 24 Feb. 23 1st Qtr. 1st Qtr. 1990 1991 1992 1992 1993 Net Sales $55.9 $52.8 $49.3 $12.6 $11.8 Net Profit (Loss) $.772 ($7.5) $.304 $.171 ($1.3)

Corporate Outlook: We are positioning our company to live in today’s world with its sluggish economy, price erosion and lower margins. We are changing from a bottoms-up manufacturing company to a manufacturer and integrator of various types of software. Our asset is our worldwide distribution system. We can put a product in the the hands of 500 distributors or dealers as quickly as we can send a fax--and keep them updated to keep them competitive.

--Douglas J. Tullio, president/CEO

RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ending Feb. 25 Feb. 24 Feb. 23 1st Qtr 1990 1991 1992 1992 52-Week High $8.25 $4.25 $3.63 $2.75 52-Week Low $3.75 $1.19 $1.50 $1.50 Book Value Per Share $7.97 $5.61 $5.23 $5.41 Price Per Share $4.00 $2.00 $2.25 $2.38 Net Earnings (Loss) Per Share $0.25 ($2.65) $0.10 $0.06 Price-to-Earnings Ratio 16:1 N/A 23:1 10:1 Avg. Return on Investor Equity 3% N/A 2% 4%

Fiscal year ending 1st Qtr 1993 52-Week High $2.75 52-Week Low $1.63 Book Value Per Share $4.80 Price Per Share $1.75 Net Earnings (Loss) Per Share ($.44) Price-to-Earnings Ratio N/A Avg. Return on Investor Equity N/A

Source: Alpha Microsystems

For more information call or write, Alpha Microsystems, 3501 W. Sunflower Ave., Santa Ana, Calif. 92799. (714) 957-8500.