Advanced Logic Hit for a Loss in Second Consecutive Quarter

IRVINE —  Advanced Logic Research Inc., injured in the computer price war, reported a loss for its latest quarter.

The computer maker, based in Irvine, posted a loss of $915,000, or 8 cents a share, for its first fiscal quarter, which ended Dec. 31. That contrasted with a profit of $462,000, or 4 cents a share, for the same period a year earlier.

Revenue was down 14% to $42.5 million from $49.4 million a year earlier. The company blamed the decline on a transition from selling its computers through various middlemen to selling them directly to consumers.

Lower domestic sales for the quarter were partially offset by a 28% increase in international sales, which accounted for 61% of the total. That compared to 41% of sales for the same period a year earlier.

Because the company lost money for two consecutive quarters, its lenders--Sanwa Bank and Hong Kong & Shanghai Bank--will cancel its credit lines at the end of February. ALR repaid $2.6 million of its borrowings on the credit lines last month and is seeking new financing sources.

“The last two quarters were a challenging period for ALR,” President Gene Lu said in a statement.

ALR laid off about 100 people in October in an attempt to control its costs and continued to reorganize its operations during the quarter.

Lu said the company has revamped its North American distribution system and plans a new series of products to serve the ever-changing computer market.