Advanced Logic Raises Stakes in Competition With Computer Rival : Sales: The Irvine-based PC maker has cut its prices 10%-25% as part of a burgeoning marketing war with Compaq.

Fighting for its life against its bigger computer-industry rivals, Advanced Logic Research Inc. said Thursday that it has cut its prices 10% to 25% on its entire line of personal computers.

ALR officials at the Irvine-based PC maker, which has lost money for the past two quarters, said the cuts were in direct response to product moves by Compaq Computer Corp. in Houston, which fired the latest broadside in the PC price wars earlier this week with discounts up to 20%.

Compaq also eliminated list prices, or manufacturers’ suggested prices, for its entire product line. ALR followed suit and extended its factory warranty from one year to five years. Dave Kirkey, ALR’s vice president for worldwide marketing, said the company’s prices are 10% to 20% below Compaq’s.

Analysts have offered pessimistic views for ALR’s outlook for several quarters, but the company says its $30-million cash cushion and engineering skills can shield it.

ALR reported a loss of $900,000, or 8 cents a share, for its first fiscal quarter, which ended Dec. 31. That compared with a profit of $500,000, or 4 cents a share, for the same period a year earlier. Three-month sales were $42.5 million, down from $49.4 million.

“I think ALR will have a very difficult time competing with Compaq and Dell in the dealer channel,” said Antoine J. Tristani, an analyst at SouthCoast Capital, an investment bank in Austin, Tex. “They have a bleak earnings outlook. But I don’t think they’re on the death watch.”