AST Stock Up After Analyst’s Forecast

Shares of AST Research Inc. rose as much as 11.5% Monday after an analyst predicted the Irvine computer maker would return to profitability by March.

AST stock prices increased $1.22 a share in heavy Nasdaq trading, closing at $14.19 a share. At one point the stock reached a high of $14.50 a share.

After reaching highs of $33 a share earlier this year, AST stock has fallen as much as 60%. The company has suffered delayed product introductions, manufacturing problems and industry price cuts that led to a nearly $40-million loss for the three months ended Sept. 30.

“I think they’ve seen the worst,” said Jim Poyner, an analyst with Oppenheimer & Co., a brokerage firm in New York, who released a bullish report on the company Monday. “The odds of them returning to profitability in the March quarter look pretty good.”

Poyner said the company is reducing its expenses and getting new products out on time. He said that he spoke with management at AST last week and was told that the company plans to cut 200 additional jobs by the end of March, a move that will further reduce operating expenses. In October, AST said it planned to cut about 700 employees, about 440 of whom were in Orange County.

A robust holiday season for computer sales also may help the company, he added.