-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, AibNb9K0GIJYY1OmcJfjeyLoxwk/wIYR3TkDBiMPS8YoYckmgBX60WyPgLJOahN1 ZlpEK+NFHlVubiQ6EvhtGA== 0000725182-95-000014.txt : 19950427 0000725182-95-000014.hdr.sgml : 19950427 ACCESSION NUMBER: 0000725182-95-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950425 ITEM INFORMATION: Other events FILED AS OF DATE: 19950426 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: AST RESEARCH INC /DE/ CENTRAL INDEX KEY: 0000725182 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPUTERS [3571] IRS NUMBER: 953525565 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13941 FILM NUMBER: 95531123 BUSINESS ADDRESS: STREET 1: 16215 ALTON PKWY CITY: IRVINE STATE: CA ZIP: 92718 BUSINESS PHONE: 7147274141 8-K 1 FORM 8-K DATED 04/25/95 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported) APRIL 25, 1995 AST RESEARCH, INC. (Exact name of registrant as specified in its charter) DELAWARE (State or other jurisdiction of incorporation) 0-13941 95-3525565 (Commission File Number) (IRS Employer Identification No.) 16215 ALTON PARKWAY IRVINE, CALIFORNIA 92718 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (714) 727-4141 NOT APPLICABLE (Former name or former address, if changed since last report.) Exhibit Index on Page 2 Page 1 of 9 ITEM 5. OTHER EVENTS The Registrant's earnings press release for the year and quarter ended April 1, 1995 dated April 25, 1995 is attached as Exhibit 99 to this Report. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibit Sequential Number Description Page No. 99 Press release issued by the Registrant on April 25, 1995, 3-9 announcing earnings for the year and quarter ended April 1, 1995.
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AST Research, Inc. _______________________________________ (Registrant) By Bruce C. Edwards Executive Vice President and Chief Financial Officer Date: April 25, 1995 Page 2 of 9 EX-99 2 FOR IMMEDIATE RELEASE Media Contact: Emory Epperson (714) 727-7958 Analyst Contact:Misty Ohmart (714) 727-7728 AST REPORTS THIRD QUARTER RESULTS IRVINE, Calif., April 25, 1995 -- AST Research Inc. (ASTA-NASDAQ) today announced revenues of $670.2 million for the third quarter of fiscal year 1995, ended April 1, 1995, representing a 13 percent increase over revenues of $591.3 million recorded during the third quarter of fiscal year 1994. Revenues for the first nine months of fiscal year 1995 were up slightly over last year at $1.8 billion. AST reported a net loss of $7.2 million, representing a net loss per share of 22 cents during the third quarter of fiscal year 1995, compared to a net income of $13.2 million and fully-diluted earnings per share of 38 cents during the prior year period. "Third quarter revenues were at near record levels and rose sequentially after seasonally-brisk sales in the second quarter," said Safi Qureshey, AST chairman and chief executive officer. "Our increased revenue level, coupled with a significant reduction in our net loss, indicates we are making progress in our return to profitability." AST shipped a total of 400,000 units worldwide during the third quarter of fiscal year 1995, representing a 20 percent gain over the prior year quarter. The quarter's total was comprised of 351,000 desktops and 49,000 notebooks, with Pentium-based systems representing 37 percent of desktop system revenues. For the first nine months of fiscal year 1995, the company has shipped more than 1.1 million systems. International sales of $333.4 million recorded during the third quarter of fiscal year 1995 were 43 percent higher than the prior fiscal year period, while North American sales decreased six percent to $336.8 million. Record revenues of $245.0 million were reached in the European region, representing a 52 percent increase over last year's third quarter, while Asia/Pacific sales increased 27 percent to $72.0 million. AST was recognized as one of the fastest-growing top-ten PC manufacturers in Western Europe according to the latest reports from International Data Corp. According to DIA Stelacon, a Swedish market research firm, the company replaced Compaq as the No. 1 market share holder in Sweden during the first quarter of calendar year 1995. AST expanded its global presence into the consumer retail markets throughout the European and Asia Pacific regions and also maintained its No. 1 market share positions in China according to Dataquest and the Middle East according to IDC. In North America, consumer retail channel revenue performance increased 74 percent for the third quarter of fiscal year 1995 as compared to the prior year period. IDC reported AST as Canada's fastest-growing PC manufacturer and A.C. Nielsen placed AST over Apple and IBM as Canada's second-largest PC supplier in the Nov. - Dec., 1994 period. IDC also ranked AST as the No. 1 market share holder in the Canadian consumer retail market. At April 1, 1995, total cash and cash equivalents were $67.5 million, with short-term borrowings at $100.0 million. Total inventory was $354.7 million, up slightly from $351.4 million at December 31, 1994. Accounts receivable totaled $465.0 million, which represented 62 days sales outstanding. THIRD QUARTER HIGHLIGHTS Increased revenues and unit shipments during the third quarter resulted from continued improvements in AST's worldwide operations model, which includes manufacturing, component procurement, supply/demand planning and new product introduction functions. Volume increased 35 percent over the previous quarter at the company's Fort Worth production facility, representing a 58 percent increase in units built per employee, with output gains of 49 percent achieved at AST Ireland. The company also successfully completed transition of all mobile systems production to Taiwan. "We are continuing to make headway in improving our internal processes through diligent focus on cost reductions, product development, quality and product and component availability," said Jim Schraith, AST president and chief operating officer. "With greater cross-functional teamwork in all areas, strides have been made toward achieving on-time product introductions, just-in- time component procurement and accurate supply/demand planning." New products shipped during the third quarter included the feature-packed Ascentia 910N and 810N notebook systems, which gives users one of the industry's longest battery life and largest color displays. The Ascentia 910 received several industry performance honors, including Best Buy awards from PC World and BYTE and a Recommended Seal from PC Digest. Also introduced were enhanced models to the Advantage! family of multimedia PCs for the consumer retail market and the high-power Premmia MX P/75 mid-range business desktop. The company also solidified executive management within its desktop, server and mobile product divisions, complementing efforts realized during the previous two quarters in strengthening leadership and structure for its three operating regions. Operations in the Americas, Europe and Asia Pacific regions have been decentralized, to provide greater efficiencies and cost controls. Work is also underway to phase in changes to the company's new product introduction process, which will involve reengineering processes and communications between manufacturing, supply/demand planning, component procurement, finance and the product division groups. During the third quarter, AST entered into an agreement providing for an investment by Samsung Electronics Co., Ltd., of up to 40.25 percent in AST, as well as other strategic relationships, including component supply and joint procurement. Since the announcement of the agreement on Feb. 27, Samsung has issued and extended until June 1 its tender offer to purchase 5.82 million shares of outstanding AST stock. The agreement has also passed review from the Federal Trade Commission concerning the Hart-Scott-Rodino antitrust act. OUTLOOK "Our intense focus on manufacturing, new product introduction processes and component procurement is improving our supply and allowing us to better fulfill demand for our desktop, notebook and server systems," said Qureshey. "While we have made progress over the last three quarters, we are continuing our efforts to expand operational efficiency, realize further cost reductions and expand demand creation to return to a market share growth position. These improvements, coupled with our new relationship with Samsung Electronics, are intended to solidify AST's position as a leading supplier of personal computers throughout the world." CORPORATE BACKGROUND AST Research Inc. is ranked number 287 on the Fortune 500 list of America's largest industrial companies and is one of the world's leading personal computer manufacturers. The company develops PC products ranging from portable systems to superservers. AST, a $2.367 billion company, is represented in 100 countries and operates 45 subsidiaries and sales offices worldwide. Corporate headquarters is located at 16215 Alton Parkway, P.O. Box 57005, Irvine, Calif. 92619-7005. Telephone: (714) 727-4141 or (800) 876-4278. Fax: (714) 727-9355. # # # AST RESEARCH, INC Condensed Consolidated Balance Sheets (In thousands)
April 1, July 2, 1995 1994 (Unaudited) Assets: Cash and cash equivalents $ 67,464 $ 153,118 Accounts receivable, net 465,022 326,057 Inventories 354,702 333,729 Other current assets 49,461 53,063 Total current assets 936,649 865,967 Property and equipment, net 103,126 103,441 Other assets 66,993 68,904 Total assets $ 1,106,768 $ 1,038,312 Liabilities and shareholders' equity: Current liabilities $ 569,325 $ 431,493 Long-term debt 216,282 215,294 Deferred income taxes and other non-current liabilities 6,241 7,571 Total liabilities 791,848 654,358 Common stock and additional capital 142,150 141,747 Retained earnings 172,770 242,207 Total shareholders' equity 314,920 383,954 Total liabilities and shareholders' equity $ 1,106,768 $ 1,038,312
AST RESEARCH, INC. Computation of Net Income (Loss) per Share (In thousands, except per share amounts)
Three Months Ended Nine Months Ended (Unaudited) (Unaudited) April 1, April 2, April 1, April 2, 1995 1994 1995 1994 Shares used in computing primary earnings (loss) per share: Weighted average shares of common stock outstanding 32,376 32,103 32,364 31,784 Effect of stock options treated as common stock equivalents under the treasury stock method 0 977 0 728 Weighted average common and common equivalent shares outstanding 32,376 33,080 32,364 32,512 Net income (loss) $ (7,234) $ 13,214 $ (69,437) $ 39,379 Net income (loss) per share - primary $ (0.22) $ 0.40 $ (2.15) $ 1.21 Shares used in computing fully diluted earnings (loss) per share: Weighted average shares of common stock outstanding 32,376 32,103 32,364 31,784 Effect of stock options treated as equivalents under the treasury stock method 0 983 0 805 Shares assumed issued on conversion of Liquid Yield Option Notes 0 4,093 0 1,649 Weighted average common and common equivalent shares outstanding 32,376 37,179 32,364 34,238 Net income (loss) Net income (loss) - primary earnings per share $ (7,234) $ 13,214 $ (69,437) $ 39,379 Adjustment for interest on LYONs, net of tax 0 890 0 1,066 Adjusted net income (loss) - fully diluted earnings (loss) per share $ (7,234) $ 14,104 $ (69,437) $ 40,445 Net income (loss) per share - fully diluted $ (0.22) $ 0.38 $ (2.15) $ 1.18
AST RESEARCH, INC. Condensed Consolidated Statements of Operations (In thousands, except per share amounts)
Three Months Ended Nine Months Ended (Unaudited) (Unaudited) April 1, April 2, April 1, April 2, 1995 1994 1995 1994 Net sales $ 670,176 $ 591,349 $ 1,805,781 $ 1,782,769 Cost of sales 583,234 490,243 1,615,222 1,481,197 Gross profit 86,942 101,106 190,559 301,572 Selling and marketing 58,934 50,031 169,347 145,124 General and administrative 22,913 19,968 67,665 57,256 Engineering and development 9,016 9,579 27,566 30,226 Operating income (loss) (3,921) 21,528 (74,019) 68,966 Other expense, net (5,121) (1,506) (12,777) (9,300) Income (loss) before taxes (9,042) 20,022 (86,796) 59,666 Provision (benefit) for taxes (1,808) 6,808 (17,359) 20,287 Net income (loss) $ (7,234) $ 13,214 $ (69,437) $ 39,379 Net income (loss) per share: Primary $ (0.22) $ 0.40 $ (2.15) $ 1.21 Fully diluted $ (0.22) $ 0.38 $ (2.15) $ 1.18 Shares used in computing net income (loss) per share: Primary 32,376 33,080 32,364 32,512 Fully diluted 32,376 37,179 32,364 34,238
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