ANALYST SCAN

ANALYST PREDICTS ABI TURNAROUND Applied Biosystems Inc. of Foster City, Calif., is about to embark on "a significant turnaround" in profits, said Jonathan W. Osgood, an analyst with Alex. Brown & Sons Inc.'s office in Boston. Osgood rates ABI stock (NASDAQ:ABIO) a "buy."

ABI's second-quarter 1991 profits were 3 cents a share on net sales of $42.2 million. Although the company's profit slipped from 16 cents a share a year ago, Osgood had forecasted only break-even results.

Osgood noted that orders rose faster than sales. This was especially true in Japan, which forms Applied Biosystems' second-largest market. Sales of reagents and chemicals grew 27 percent, but instrument sales fell 10 percent and trended toward flat. Second-quarter production and inventory reductions of $3.3 million hurt gross profit margins. Nonetheless, savings from this and plant consolidations should fatten margins for the year.

Based on second-quarter results, sales growth and improving gross margins, Osgood now forecasts a 21-cent-a-share loss for the year ending June 30. That is better than his prior forecast of a 25-cent loss. Osgood's estimates include a non-recurring charge of 32 cents per share in the first quarter. He is sticking to a 45-cent profit forecast for fiscal 1992.

ABI, which has traded in a 52-range of $6.50 to $15.75, closed Wednesday at $15 a share, up 13 cents. -- Ray Potter

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