ARCHIVE BACKGROUND INFORMATION Archive Corporation was founded in 1980 with the purposes to develop, manufacture, and market QIC drives. In 1990 Archive acquired Cipher Data Products, and dominating the market holding a total share of 40%. Through Ciphers 1989 purchase of Irwin Magnetic Systems, Inc., Archive aquired the lead position in the minicartridge market. The Optimem operation, aquired with Cipher, was closed in April 1991. The company now consists of three business units - Arhive technology, Maynard, and Ardat. Cipher was folded into Archive Technology in September 1991, shortly followed by Irwin. A breif outline of each division will now follow - Archive Technology, Inc. Archive Technology makes and sells the company's 5.25" form factor DC6000-based QIC tape drives. It also manufactures the Viper QIC tape drive series, its most recent addition is a 2.1GB drive, which was announced in September 1991. Maynard Elecronics, Inc. Formed in 1982, this division now employs 200 people with an employment growth of 60% in 1990, and sales of $100M - $250M, 25% of which were exports. Maynard buys its drives from ardat, assembling tape backup subsystems for the IBM PC, PS/2, and compatible computers. It is also the software development centre for archive. It offers QIC, DAT and 8mm tape backup products. Ardat, Inc. Ardat markets computer-grade DAT drives manufactured as part of a joint development agreement with matsushita-Kotobuki Electronics Industries Ltd. (MKE) of Japan. Archive companies sell the drives in the Americas, Erope, and New Zealand/Australia. MKE manufactures the drives in Japan and markets them under its own name in Asia. The electronics design is done by Ardat. Shipments of DC2000 drivesare manufactured by MKE and designed and marketed by Ardat. Formed in 1990, it now employs 60 people. Irwin Magnetics Systems, Inc. Irwin was formed in 1983, and now employs 300 people. Its principle product is DC2000. It Has recently been split into two seperate divisions, one feeding into the corporate OEM sales, the other into Maynard, for the Dealer and Distributor Channel. Cipher Data Products, Inc. Established in 1968, aquired by Archive in 1990. It now employs 40 people. It concerntrates on 1/2" drives. TARGET SYSTEMS The company's products compete on the basis of reliability, performance, availability, support and price. Current competition for Archive's products comes from different products that can perform removable media backup. It aims at the Minicomputer, Workstation, Multi-user, and Personal Computer Markets. PRODUCTS TO DATE PRODUCT DATE RELEASED CAPACITY TRANSFER RATE FORM FACTOR OEM PRICE DAT PXY 100 Q1'90 1.3 - 2GB 183KB/s 5.25"FH 4520 NT Q4'90 1.3 - 2GB 183KB/s 5.25"HH 4330 XT 90 1.3 - 2GB 183KB/s 3.5"HH Boxed 4320 NT 90 1.3 - 2GB 183KB/s 3.5"HH 4322 NT Q2'91 2.6 - 8GB 3.5"HH QIC HORNET 40 40 - 120MB 250/500KB/s 5.25"HH 80 80 - 250MB 500KB/s 5.25"HH VIPER 2060 60/100MB 90KB/s 5.25"HH 2150 150/250MB 112.5KB/s 5.25"HH 2320 320MB 180/240KB/s 5.25"HH 2525 525MB 180/240KB/s 5.25"HH 2650 1990 1.05GB 480KB/s 5.25"HH 2750 1.6GB 600KB/s 5.25"HH 2800* Q1'92 2.1GB 600KB/s 2850* Q1'92 2.1GB 600KB/s 2850C 4.2GB 1.6MB/s SCORPION 5240 40MB 250KBits/s 3.5"HH 5540 40MB 500KBits/s 3.5"HH 5920 1980 20/27MB 90KB/s 5.25"HH 5945 1981 45/60MB 90KB/s 5.25"HH * Latest Products. Note. It counts on Third party developers to write software. MANUFACTURING LOCATIONS Manufacturing is consolidated in Singapore, with assembly in the US. Ardat however has its products manufactured by a third party , as part of a joint development and purchase agreement. The DC2000 product is Manufactured by MKE. CHANNELS Sales are channeled through Archive technology for OEM sales (12 people approx.), this counts for 50% of total sales. Dealer and distributor sales are conducted via Maynard. These two divisions gain the majority of the profit, giving Ardat only a transfer charge to recover production costs. Sales for the two divisions are split as follows: Archive Technology : 4mm - OEM 5-10% (Pending Decisions) VARs 60-70% Distributors 20-35% DC2000 - Do not Proactively Market (Irwin's Product) DC600 - OEM 64% (But eroding quickly) - Distributors - Not compensating OEM Accounts = Compaq, DEC, HP, IBM, NCR, Unisys, QIC - Texas Instruments, Olivetti, Sun. Maynard : Mainly Dealers & Some End Users (Principle product DC600) Distributors = Hamilton Avnet, Arrow Electronics, Thame, Sears, Computerland. Note. Irwin used to be 50% OEM & 50% Reseller Channel In 1990 28% of total revenue were from International sales, the companies primary objective for the comming years is to achieve a 50/50 split between the Domestic and International market. With this aim in- mind it has realigned its european sales and administration to increase the number of European OEM and Distributor customers, integrating Ciphers European servicce operation. FINANCIAL Financially Archive is unstable, this is due to the principle Debt and interest payments for the Cipher aquisition. 1991 1990 1989 1988 1987 Sales Rev. 345,600,000 293,234,000 181,409,000 122,669,000 88,806,000 Net Income. -11,500,000 11,537,000 15,320,000 10,535,000 6,085,000 SUMMARY ARCHIVEs'MARKET SHARE BY MARKET 1986 1987 1988 1989 1990 1991 4mm 17 22 DC600 58 58 48 49 46 41 DC2000 89 74 60 60 42 38 It can be seen that Archive has decreased its market share in those markets with a slower growth rate, and is increasing their share of the fastest growing market, ie. The DAT Market. It has realigned its structure in-line with this theme. It is because of this, and their strong presence in the OEM market place that they are considered are No. 1 competitor in the DAT market. However their weak financial standing is a continual threat to their future.