Advanced Logic Research
Nature of business: Supplies microcomputers for the Intel line Total employees: 550 In Orange County: 400 Stock listing in The Times: On NASDAQ “AdvLog” Ticker Symbol: “AALR” Friday’s stock close: $3.84 One-week change: Up $0.21 Analyst review: “Advanced Logic has a very good clone in the computer market, and the quality of its components are good. Right now its stock trading below book value, however, that’s more reflective of the whole computer industry. Even IBM is down. The industry has gotten so fierce, that a lot of the clone manufacturers are having problems holding margins, and ALR is no exception. Everyone and his mother is getting into the computer business. But Advanced Logic is in a very good position. It has close to $30 million in cash--up from $23 million last year. That’s a positive sign that ALR is in a turn around position. One edge that it has over several of the others is the connection to foreign markets. It has offices all over the world.” --John M. Tuschner, vice president Protective Group Securities, Minneapolis Revenue Dollar amounts in millions
Year 1988 1989 1990 1991 1992 Revenue $37.1 $73.1 $172.0 $228.0 $206.8
Profit Dollar amounts in millions
Year 1988 1989 1990 1991 1992 Profit $2.5 $2.8 $11.5 $14.7 $.549
Corporate outlook: “Competition in the PC industry has escalated in the last six months and has led to accelerated price erosion and changes in distribution methods. ALR has responded to this more intense environment with new competitive products, a reorientation of its distribution approach, and reductions in operating expenses. This approach along with a strong balance sheet provide a foundation for ALR’s success in the future.” --Ron Sipkovich, chief financial officer RETURN ON INVESTMENT: 5-YEAR SUMMARY
Fiscal year ending Sept. 30, ’88 Sept. 30, ’89 52-week high* N/A N/A 52-week low* N/A N/A Book value per share $0.51 $0.93 Price per share* N/A N/A Net earnings per share $0.36 $0.41 Price-to-earnings ratio* N/A N/A Avg. return on investor equity* 7% 4%
RETURN ON INVESTMENT: 5-YEAR SUMMARY
Fiscal year ending Sept. 30, ’90 Sept. 30, ’91 52-week high* $19.25 $20.75 52-week low* $5.50 $4.50 Book value per share $6.58 $8.18 Price per share* $6.00 $12.50 Net earnings per share $1.38 $1.40 Price-to-earnings ratio* 4:1 9:1 Avg. return on investor equity* 21% 17%
Fiscal year ending Sept. 30, ’92 52-week high* $14.50 52-week low* $4.00 Book value per share $7.67 Price per share* $4.75 Net earnings per share $0.05 Price-to-earnings ratio* 95:1 Avg. return on investor equity* 1%
* ALR sold 3.1 million shares in its initial public offering April 19, 1990; net proceeds $36 million. For information, write Advanced Logic Research: 9401 Jeronimo Road, Irvine, Calif. 92718. (714) 581-6770
