AST Forecasts Loss, Citing Production Delays, Price Cuts
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IRVINE — AST Research Inc. said Wednesday that it expects to post a loss for its current quarter, with no increase in revenue.
The Irvine-based computer manufacturer said that delays in product development will have a negative effect on its performance for the three months ending Oct. 1. Also, AST said, component shortages will hold up delivery of new notebook computers and CD-ROM-equipped desktop personal computers.
Results for the quarter are also being affected by AST’s reduction of prices on some models of personal computers to remain competitive.
Price slashing of computer hardware has been common in recent months among major manufacturers. Several companies have cut prices by as much as 30%, following the lead of Compaq Computer Corp., a Texas-based personal computer manufacturer.
AST said it expects sales for the current quarter to be about the same as for the like period last year: $514 million.
For its fiscal year ended July 30, AST reported a profit of $53.5 million on revenue of $2.37 billion.
The company announced the quarterly forecast after the stock market closed Wednesday. Its stock closed at $18.06, up 31 cents, in Nasdaq trading.
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