CEO Tells Shareholders to Put Losses in the Past, Focus on AST Recovery

One day after AST Research Inc. reported the biggest quarterly loss in the computer maker’s history, Chief Executive Ian Diery sought to raise investors’ spirits Thursday at AST’s annual shareholders meeting.

The company’s performance last quarter, in which AST lost nearly $129 million, “is full of good news and bad news,” Diery said. Acknowledging that the deep losses were disappointing, he stressed that sales had surged from the previous quarter and that the company is embarking on a solid recovery plan.

Diery outlined a strategy aimed at transforming AST into a nimble computer manufacturer capable of bringing the latest technology to the market rapidly. He also listed what he believes are the company’s strengths, including its respected research heritage and close financial relationship with Samsung Electronics, a Korean company that owns 40% of AST’s stock.

“Our goal is to return to profitability in 1996,” said Diery, who added that the Irvine company is preparing to release a “slew” of new products in the coming months.

As expected, a Samsung-controlled board of directors was formally elected at the meeting, which was held at an Irvine hotel and attracted about 100 shareholders.

During a question-and-answer segment after the meeting, several shareholders criticized the company for failing to market its products effectively and for spending millions of dollars on severance packages for departed executives.

But for the most part, the meeting was an orderly affair and was completed within two hours.