AST Research Reports 80% Rise in 3rd-Period Revenue

Thanks in part to its July acquisition of Tandy Corp.’s computer manufacturing business, AST Research Inc. on Tuesday reported a rise in quarterly profit and and a hefty 80% increase in revenue.

Earnings for the company’s first quarter, which ended Oct. 2, were $8.2 million, or 26 cents a share, compared to profit of $7.6 million, or 24 cents a share, for the corresponding period a year earlier. Sales soared to $514.4 million--a record three-month tally in the company’s 13-year history--from $286.4 million.

“There is strong interest in our new products,” said Safi Qureshey, the Irvine-based company’s president and chief executive officer. “We feel very satisfied with these results.”

The performance came in slightly below Wall Street’s expectations, however. AST’s stock fell 75 cents a share to close at $18.75 in Tuesday’s Nasdaq trading.

The company did not break out sales figures for its four new manufacturing plants--three in Texas and one in Scotland. The company bought the plants from Ft. Worth-based Tandy Corp. for $105 million, making AST the nation’s fourth-largest personal computer manufacturer.

Yet even without the additional revenue from the purchase, AST’s sales “would have been up sharply,” said Richard Chu, an analyst with the brokerage Cowen & Co. in Boston. Chu estimated that the Tandy plants contributed about $80 million during the quarter.

“Along with several other big-name computer makers, AST continued to post gains--presumably at the expense of more marginal players,” Chu said.

AST Earnings Increase

AST Research reported first-quarter earnings of $8.2 million, or 26 cents a share, on revenue of $514.4 million. During the period, the Irvine-based computer firm completed its acquisition of Tandy Corp.’s personal computer operations. The $111.7-million deal made AST the nation’s fourth-largest computer manufacturer. Dollar amounts in millions except data per share.

Percent 1993 1994 change Total revenue $286.4 $514.4 80.0 Net earnings 7.6 8.2 7.9 Earnings per share 0.24 0.26 8.3

Source: AST Research; Bloomberg Business News;

Researched by JANICE L. JONES / Los Angeles Times