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1994-10-03
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Delphi to Move Part of Boston-Area Workforce to New York
Sep. 30--Delphi Internet Services Corp. of Cambridge plans to move a portion
of the company to New York, but its top official says it will not abandon the
Boston area.
Between 20 and 30 workers, primarily in marketing, will move to New York,
said chief executive Alan Baratz. In an interview Sept. 14, Baratz had said
the 150-worker company had run out of space at its Cambridge offices and could
possibly leave the region.
Baratz said this week that only a portion of the company will move, and the
rest will remain in the Boston metropolitan area. "We will be here," he said.
If the company outgrows its office space outside Harvard Square, it will lease
space elsewhere in the region, he said.
Because partners and potential partner companies are in New York, it makes
sense to move marketing staff there, Baratz said.
Additionally, "we're absolutely out of space, and we need to take the pressure
off," he said.
A unit of Rupert Murdoch's News Corp., Delphi is one of the country's largest
general interest online computer services. Among the large services,
it offers the most complete access to the Internet - the web of
interconnecting networks that host discussion groups and hold a vast amount of
information. However, analysts say Delphi's growth has been limited because it
is a text-only service, while competitors are highly graphical and easier to
use.
Baratz said the number of subscribers had jumped 20 percent in the two months
he has been with the company.
In addition to providing Internet access, Delphi offers content from partner
companies, such as Murdoch's Fox television. It has also signed deals to
provide educational material to schools and is looking to provide services to
businesses. END!C1?GL-DELPHI
**********************************
Delrina delivers Internet Messaging for the Masses in new WinComm
SAN JOSE, CALIF. Sept. 30, 1994--Delrina Corp.
(NASDAQ:DENAF, TSE:DC) Friday announced the immediate availability of a new
version (1.1) of Delrina WinComm PRO, a powerful and easy-to-use Windows-based
on-line communications software package.
WinComm PRO has been upgraded with many new features and now includes Delrina
Internet Messenger, a full-featured, off-line electronic mail package that
enables users to easily connect to the Internet through almost any Internet
service provider. It has an easy-to-use graphical front end (GUI) for sending,
receiving and managing Internet e-mail.
The Internet is a vast collection of computer networks that now link
individuals in more than 100 countries. With connectivity estimated to be
growing by 20% a month, and an estimated 30 million people already connected,
the Internet has become the third largest communications network behind the
telephone system and cable TV, and an increasingly important business tool.
Much of the "hype" surrounding the Internet revolves around products such as
Mosaic and Gopher, which are utilities that make it easier to navigate through
the maze of Internet servers to hunt for information -- called "surfing."
However, the exchange of e-mail messages with other Internet users, whether
for business or personal correspondence, is by far the most common and
practical activity for the majority of users.
In a recent survey of over three hundred InfoWorld readers on their thoughts
about the information superhighway, one-third (28.9%) cited electronic mail as
the most vital application today, and half those surveyed (50.8%) cited e-mail
to be the foremost application they would use three years from now (InfoWorld,
Sept. 26, 1994 Enterprise Computing Section: Special Report). The Internet is
viewed as one of the lanes for exchanging messages on the information
superhighway. "Electronic mail on the Internet has an enormous practical
benefit and we want to provide customers with a robust messaging capability in
a package that is easy to install and use," said Delrina President Mark
Skapinker. "Making connectivity to the Internet simple enough for the average
person is the essential component. Internet Messenger is designed to become
for the Internet, what WinFax has become for PC faxing."
*******************************************
Review & Preview: HDTV Passes Crucial Field Test
Anyone who still thinks construction of the infobahn means all the world
soon will become one giant neural net hasn't been paying attention. True,
more and more information is being shipped on electrons that whiz along at
the speed of light. The problem is figuring out how to tap into the flow,
and that discussion frequently plods along at horse-and-buggy velocity,
Barron's reports. No wonder people tune out.
Take high-definition television, for example, which already claims the
dubious distinction of having the longest and still
unfinished-standard-setting process in U.S. history (Barron's, June 4,
1990). Seven years of pushing and pulling at the technology resulted, in
mid-September, in a report that HDTV had passed its first exhaustive field
test with flying colors. A Zenith Electronics spokesman modestly notes this
was a "very significant development" not least because much of the
technology has been developed by Zenith. The media, on the other hand,
merely yawned and ignored the announcement.
Or worse. On Sept. 21 -- just two days after the test results were released
-- the New York Times ran a story under the dour headline, "A Rough Start
for Digital TV." But the story was focused not on HDTV but on the problems
encountered by DirecTV, which uses digital technology to beam television
signals via satellite. Although the two approaches have a distant family
resemblance, the only accurate part of the Times' confident statement that
DirecTV is offering "the long-awaited digital television signal" was in the
words "long-awaited." Indeed. Converting to HDTV broadcast, in other words,
requires both an entirely new transmission system and a nation full of new
television sets. Neither of those changes can occur until everyone agrees on
the standards for both senders and receivers.
Therein has been the source of much delay, with even presumably settled
matters getting revisited with idiosyncratic quirkiness. One change that
HDTV will foster, for example, is in picture shape, from the current
width-to-height ratio of 4-to-3 to a wide-screen ratio of 16-to-9 that is
more compatible with films. That issue was resolved years ago. Nonetheless,
this past summer the American Society of Cinematographers almost derailed
the agreement by abruptly announcing that a more appropriate ratio would be
2-to-1. The filmmakers were roundly ignored, which is the only reason the
HDTV saga continues to lurch forward.
With the mid-September test results, however, the path looks clear for HDTV
to meet a schedule that includes having the sets for sale in local appliance
stores by late 1996. "This has gone on a lot longer than anyone
anticipated," concedes Paul Misener, spokesman for an industry committee
that is advising the Federal Communications Commission on the technology. On
the other hand, he adds, "it started out as just better television and now
it's an advanced digital-bit TV system, so the bottom line is that the wait
has been worth it."
Well, maybe. Because the other thing about HDTV is that it won't be cheap.
Zenith Chairman and Chief Executive Jerry K. Pearlman is forecasting a
$1,500 premium over the current cost of rear-screen projectors, or roughly
$3,300 for a 50-inch set. If that sounds a mite rich, he hastens to point
out that this is comparable to the inflation-adjusted price of TV sets 40
years ago -- when they looked more like fish bowls than windows overlooking
the information highway.
*********************************
Motorola Planning Foray Into Computer Manufacturing
Motorola Inc., a giant in microchips and communications gear, plans a major
new foray into computer manufacturing, confidently predicting it can tear
big chunks of market share away from rivals within a year.
Ed Staiano, president of the company's general-systems division, which
includes cellular-phone operations, said Motorola plans to begin
manufacturing workstations and servers using the new PowerPC microprocessor,
which Motorola developed with International Business Machines Corp. and
Apple Computer Inc. Workstations are powerful desktop machines often used in
science, engineering and financial analysis; servers act as hosts for
networks.
Most, if not all, of the computers will be made for about 20 to 30
manufacturers and resellers, which Motorola declined to identify. France's
Cie. des Machines Bull is one of them, according to industry sources.
Motorola will also make PowerPC "motherboards," which are the main circuit
boards for computers, for other computer makers and eventually may enter the
personal-computer market as well.
Mr. Staiano said he expects shipments of between 250,000 and 300,000
workstations, servers and PowerPC motherboards combined in 1995. Motorola
officials didn't specify how many computers it plans to ship, but the
overall forecast indicates that Motorola expects to make significant inroads
into the workstation and server markets, which will have combined 1994 unit
shipments of about one million units.
Motorola is aggressively pricing low-end workstations as low as $3,790 and
servers as low as $6,965, levels that are close to price leaders such as
Hewlett-Packard Co. Mr. Staiano projected revenue growth from the line would
increase 50% annually.
"We intend to be very aggressive," Mr. Staiano said.
Other workstation makers suggest Motorola may be letting its enormous
success in pagers and cellular phones go to its head. The rapid spread of
wireless communications around the world has made Motorola one of the two
fastest-growing companies among the ranks of major American multinationals.
Motorola's revenues this year are expected to jump about 30% to $22 billion.
But the workstation and server markets are fiercely competitive and
dominated by the other fastest-growing multinational, Hewlett-Packard, as
well as by Sun Microsystems Inc., IBM and Digital Equipment Corp.
"I certainly won't lose much sleep about it," said Wim Roelandts, general
manager for computer systems for Hewlett-Packard. "The overall workstation
market is maturing, so it will be very difficult to grow from zero." Added
Bob Pearson, a workstation marketing director for Sun: "Just putting product
out with a good price does not guarantee volume in the workstation
business."
Moreover, Motorola has already flopped in previous attempts to become a
major workstation and server manufacturer. It was Mr. Staiano who had
proclaimed Motorola's "coming-out party" in 1990 when it launched a line of
servers. He conceded in an interview last week that business never took off,
in part, because of a defective operating system. Motorola's share of the
$10.25 billion server market is about 2%. The company also tried to develop
a market for building computers for resellers and manufacturers a few years
ago, but didn't succeed. Its computer sales are expected to amount to only
about $500 million, or 2%, of Motorola's projected 1994 revenue.
David Card, an analyst at International Data Corp., Framingham, Mass., said
Motorola might make gains in the relatively new server market, but
workstation makers are too entrenched. "They could gain significant share in
servers, but not workstations or PCs," he said.
But Motorola says it has learned to become an extremely efficient, low-cost
manufacturer. "We intend to be the price leader" in workstations and
servers, Mr. Staiano said.
Moreover, Motorola asserts that the PowerPC microprocessor is a powerful,
inexpensive platform for high-end computers. Apple is selling a line of
PowerPC personal computers, and IBM is selling PowerPC workstations.
Motorola is getting into the workstation business again to drive the
PowerPC effort, Mr. Staiano said, adding that "we have a lot of people who
have asked us to put this together."
But in the near term, any Motorola success is apt to come first out of the
hide of its PowerPC partner, IBM. Motorola's first workstations and servers
will use IBM's "AIX" version of the Unix operating system for workstations
and servers. IBM, too, had vowed to unseat Hewlett-Packard and Sun as market
leaders when it launched its line of RS6000 servers and workstations about
three years ago, but remains back in the pack with less than 100,000 unit
shipments a year combined. Sun expects to ship about 300,000 workstations
alone this year.
Soon, though, Motorola officials say they intend to build workstations and
servers supporting other operating systems, including Microsoft Corp.'s NT
and perhaps Apple's Macintosh system, which is to be broadly licensed for
the first time. Mr. Staiano, moreover, doesn't rule out Motorola entering
the high-volume business of personal-computer manufacturing. Sources close
to the company say they expect such an announcement soon.
**************************************
Superconductor Technologies receives $1.9 million contract to deve
high-speed cryocooled workstation with Sun Microsystems, Ross Technologies and
nCHIP Corp.
SANTA BARBARA, CALIF. Oct. 3, 1994-- Superconductor
Technologies Inc. (STI) (NASDAQ:SCON) Monday announced that it has received a
$1.9 million contract from the Naval Research Laboratory (NRL) to evaluate
high-speed cryocooled workstations with SUN Microsystems Inc., ROSS Technology
and nCHIP Inc.
The ROSS- and nCHIP-manufactured hyperSPARC subassembly will be packaged
within Superconductor Technologies' cryogenic subsystem and integrated with
SUN SPARC workstations. Anticipated results for the nine-month program,
funded by the Advanced Research Projects Agency (ARPA), is a speed increase of
up to 40 percent. By optimizing the chip for cold temperatures, future
increases of 100 percent could be reached.
''It has long been known that cooling conventional CMOS circuits improves
performance and reliability,'' said David Ditzel, chief scientist for SUN's
SPARC technology business. ''Because of the advancements in cryocooling and
cryopackaging technologies brought forth in the high-temperature
superconducting (HTS) industry, widespread commercial adaptation of cryocooled
electronics could now become economically feasible.''
''Cryoelectronics is not a new concept,'' explained Frank Patten, program
manager for ARPA. ''The microwave, military and medical industries have
utilized cryocooling for decades. We are looking at taking cooling one step
further by applying it to commodity applications such as high-speed
workstations and file servers.
''We believe that cryoelectronics could quickly grow into a large industry,
and it's our goal to make sure that the United States is at the forefront of
the technology.''
Technological advances in silicon processing have permitted reductions in
device size and allowed the fabrication of much more compact integrated
circuits (ICs). At the same time, the trend toward smaller, faster computers
has increased microprocessor power dissipation and thus added to the
heat-removal requirements.
Because higher IC temperatures degrade circuit reliability and reduce speed,
heat removal by forced air is becoming less practical and the requirement for
active cooling of the central processor is rapidly approaching.
As manufacturers consider the addition of active cooling to the computer,
the concept of operating the ICs at low temperatures immediately becomes
attractive because lower temperatures can increase the speed of the ICs and
improve their reliability.
Daniel C. Hu, president and chief executive officer of Superconductor
Technologies, explained that the adaptation of its cryogenic systems is more
than a revenue opportunity for the company. ''By broadening the application
of our cryogenic systems for conventional CMOS electronics, STI will be able
to increase the sales volume of its cryogenic systems, thus bringing down the
cost of our HTS cellular and aerospace filtering systems.
''It also provides us a stepping stone into a next-generation cooled CMOS
system that utilizes HTS as the interconnects for the multichip packaging.''
The STI cooling system is used to cool high-temperature superconductor (HTS)
cellular base station filters that the company will ship for testing by its
strategic partner in the fall of 1994. The cooler system is approximately the
size of a quart milk carton and combines state-of-the-art refrigeration and
packaging technology.
The system is capable of cooling microelectronics components down to minus 230
degrees Celsius. The cooler, which uses the same amount of electricity as a
light bulb, uses a gas bearing that eliminates wear by allowing the
compressor's piston to float on a cushion of helium gas.
SUN Microsystems is an integrated portfolio of businesses that supply
distributed computing technologies, products and services. Its innovative open
client-server computing solutions include networked workstations and
multiprocessing servers, operating- systems software, silicon designs and
other value-added technologies.
According to analysts, the company's products command the largest share of one
of the computer industry's fastest-growing market segments: workstations and
servers. Founded in 1982, SUN is a Fortune 120 company with headquarters in
Mountain View, Calif.
nCHIP provides electronic packaging products that reduce system costs while
providing increased performance and density. As the MCM industry's leading
noncaptive manufacturer, nCHIP introduced advanced MCM technology to
mainstream applications such as workstations. nCHIP is located in San Jose,
Calif.
ROSS Technology was incorporated in August 1988 and is a fully funded, wholly
owned subsidiary of Fujitsu Ltd. Functioning autonomously within the Fujitsu
corporate umbrella, ROSS is fully responsible for all operational aspects of
its SPARC program. ROSS' objective is to drive SPARC, the industry's dominant
RISC architecture, to increased market share throughout the 1990s.
ROSS will accomplish this by continuing to produce the world's most
architecturally advanced SPARC microprocessor products, implemented in
world-class CMOS technology, which span the full performance and price range
of computer applications.
Superconductor Technologies is a leading commercial supplier of
high-temperature superconductor (HTS) and cryoelectronic products for the
cellular communications, high-speed computing, medical imaging and aerospace
electronics markets. With headquarters in Santa Barbara, Superconductor
Technologies designs and manufactures HTS-based subsystems for
high-performance applications.
****************************
Western Digital announces the first fully integrated graphics and
video accelerator -- the RocketCHIP WD9710
MOUNTAIN VIEW, CALIF. -Oct. 3, 1994--Western Digital
Corp. (NYSE:WDC) Monday announced the WD9710, the newest member of the
RocketCHIP product family of display controller devices.
The WD9710 is the first product to combine all the elements of a complete
graphics accelerator, a high-performance RAMDAC, a fully programmable clock,
video scaler, interpolator, filter and color convertor.
"Multimedia on the desktop is emerging as one of the most significant PC
market segments in recent years," said Leonard Sharp, vice president of
marketing for Western Digital's Imaging business unit, located in Mountain
View.
"Motion video content, primarily on CD-ROM, is proliferating, but many users
are dissatisfied with the performance and image quality. The WD9710 enables
PC and add-in board manufacturers to provide TV-quality video playback with
state-of-the-art Windows performance at a graphics-only price point."
The WD9710 incorporates a high-performance, pipelined 64-bit architecture
throughout the graphics and motion video engines. The 64-bit graphics and
motion video pipeline contains a 320 MB per second DRAM memory for processing
two 32-bit per pixel operations per clock cycle.
This allows ultimate acceleration for 8-, 16-, 24- and 32-bit color depth.
For maximum memory bandwidth the graphics engine interfaces to both standard
DRAM and advanced EDO (Extended Data Out) DRAMs.
Motion video processing and display are accomplished in the motion video
engine for optimal performance with built-in logic for YUV to RGB color space
conversion, horizontal and vertical scaling/interpolation, shared framed
buffer control, chroma key and live motion video data stream input via the PCI
bus or VAFC (Vesa Advanced Feature Connector) port.
Unlike other competitive offerings that process motion video via the processor
or external hardware, the WD9710 provides performance, functionality and
integration for multimedia playback of true color motion video at 30 frames
per second in VGA and SVGA formats.
For additional functionality and performance, a full 24-bit RAMDAC and
programmable clock synthesizer are also integrated into the WD9710. These
features have been added to glue-less 32-bit interfaces for both VESA-VL and
PCI (peripheral component interconnect) systems buses for full flexible,
value-added performance.
"The WD9710 provides cost-effective, integrated graphics acceleration and
motion video in a single device without compromising performance," said
Michael Hawkey, marketing manager for the WD9710. "The motion video features
provide full-screen, television quality video for the price-sensitive
mainstream PC buyer."
The WD9710 is the first device in a series of high-level graphics accelerated,
video-capable products from Western Digital's Imaging business unit. Product
will begin sampling in November, and is available in 208-pin PQFP (plastic
quad flat packs) starting with standard OEM pricing at $35/10,000.
The WD9710 has been developed to provide the highest level of performance for
Microsoft Windows 3.11, Windows-95, Windows NT, OS/2, SCO UNIX and AutoCAD.
Hardware acceleration is also provided for Microsoft/Intel's Display
Controller Interface (DCI), the extended device driver interface for direct
access to display frame buffers for increased motion video display performance.
Hardware and software CODEC acceleration is provided for the WD9710 through
software licensing agreements with SuperMac Technology for Cinepak,
Mediamantics' MPEG technology and Intel's Indeo.
Western Digital has transferred the company's expertise and commitment to
portable, power-managed systems to the "Green PC" desktop. The WD9710 has
full support and hardware control for all DPMS monitor modes.
In addition, the device has the ability to reduce memory clocks, power down
the internal RAMDAC, clock synthesizer, as well as portions of the digital
logic.
With headquarters in Irvine, Calif., Western Digital is a recognized leader in
the design and manufacture of hard disk drives, integrated circuits and
graphics controller board-level products. The company markets these products
to leading systems manufacturers and selected resellers under the Western
Digital, Caviar, Paradise and RocketCHIP brand names. The company was founded
in 1970 and has long been noted for its storage and graphics controller
expertise and end-market systems-level design knowledge. -0-
*****************************
MapInfo ships MapInfo 3.0, MapBasic 3.0 and SQL DataLink for Macin
UNIX
TROY, N.Y. -Oct. 3, 1994--MapInfo Corp. (NASDAQ: MAPS),
the worldwide leader in desktop mapping software, today announced the
availability of MapInfo 3.0, MapBasic 3.0 and SQL DataLink for Macintosh and
UNIX on Sun and Hewlett Packard platforms.
Version 3.0 for Windows shipped in early June. This new release delivers
powerful new mapping capabilities to Macintosh and UNIX users through advanced
data visualization features, improved geographic analysis functionality and
new ease-of-use features, MapBasic programming language and SQL DataLink
connectivity.
"MapInfo 3.0 for Macintosh and UNIX are the most robust desktop mapping
solutions available for users in both arenas, enabling powerful geographic
data analysis for strategic business decision-making," said Brian D. Owen, CEO
and president, MapInfo Corp. "In addition, MapInfo 3.0 for Macintosh and UNIX
is part of an enterprise-wide computing solution. While other vendors offer
single user, single platform products, MapInfo products serve sophisticated
multi-user, multi-platform client/server environments."
"MapInfo 3.0 for Macintosh is generations ahead of other mapping packages,
with unmatched thematic mapping, raster capabilities and import/export
functionality," said beta tester Tom Mulhall of Management Information
Technologies International. "With its easy-to-use interface,
exciting graphics capabilities and interoperability with a variety of
databases and other software applications, MapInfo plays to the strengths of
the Macintosh platform."
"MapInfo provides solid thematic mapping capabilities and data functionality
for business analysis," said Tony Lupien, GIS Division Manager at United
Parcel Service. "The combination of MapInfo's strong mapping capabilities
with speed of UNIX will accelerate our data processing to improve operational
and marketing decision-making within UPS."
MapInfo Version 3.0 offers the most complete solution available for business
users to view and analyze corporate data geographically. Desktop mapping
software enables faster, better decision-making and improved operating
efficiency. MapInfo is the only cross-platform desktop mapping solution,
available on Macintosh, Sun and Hewlett Packard UNIX and Windows.
Enhancements and new functionality in MapInfo 3.0 include:
o New Data Visualization Features -- New powerful data visualization features
enable users to give dramatic, detailed presentations that help support
analysis of a strategic business situation. For example, raster image support
allows users to incorporate maps with scanned satellite images and aerial
photographs. Thematic map enhancements offer expanded ways to represent data
visually with multiple variables, e.g., pie charts and ranges. Enhanced
redistricting makes it easier for users to balance territories according to
changes in data.
o New Geographic Analysis Functionality -- With advanced polygon operations,
data-driven buffers and advanced editing functions, users can design robust,
data-intense mapping applications that can be implemented on the desktop
without sacrificing ease-of-use.
o Enhanced Usability -- Key enhancement include a new and improved interface,
enhanced palettes and new button pads, making desktop mapping accessible to
non-technical staff across organizations. Expanded Data Access with SQL
DataLink
MapInfo's SQL DataLink connectivity module provides client/server remote data
access to standard corporate databases for MapInfo applications. SQL DataLink
for Macintosh and UNIX allows users to connect with Oracle and Sybase
databases.
As a result, MapInfo users now have access to the broadest possible range of
corporate data and can boost productivity by sharing, instead of re-creating,
that data. Similarly, desktop mapping applications -- once the province of
individual users -- can now be more easily integrated throughout the workgroup,
department or entire enterprise. Vertical Mapping Applications with MapBasic
3.0
MapBasic 3.0 for Macintosh and UNIX offers enhancements that make it even
easier for hundreds of MapInfo partners and corporate developers to build
vertical mapping applications. Plus, MapBasic programmers now have access to
remote database query and update capability, enabling the development of
customized client/server MapInfo applications. Enhancements include increased
programmatic control, ability to link multiple MapBasic modules through a
project file and custom buttons. Pricing/Availability
MapInfo 3.0 for Macintosh is priced at $1,295; MapBasic 3.0 at $795; and SQL
DataLink at $595. Special upgrade pricing effective through Oct. 31,
1994 is $199 for MapInfo and $99 for MapBasic. Effective November 1, upgrade
to MapInfo 3.0 will be priced at $299, MapBasic at $199.
MapInfo 3.0 for UNIX is priced at $2,495; MapBasic at $1,595; and SQL DataLink
at $1,195. Special upgrade pricing effective through Oct. 31, 1994 is $399
and $269 for MapBasic. Effective November 1, upgrade to MapInfo for UNIX will
be priced at $599, MapBasic at $399. About MapInfo Corp.
MapInfo Corp., Troy, N.Y., was founded in 1986 and is the worldwide leader in
desktop mapping software. MapInfo went public in February 1994 (NASDAQ:
MAPS). MapInfo software has been recognized for excellence by PC Magazine,
Windows Magazine and MacUser Magazine. The software runs on Macintosh, Sun
and HP UNIX, Windows and DOS, is available in multiple languages and is sold
worldwide through direct sales, resellers and distributors.
*****************************************
Wall Street Hoping Disk Drive Cos Just Meet 3Q Estimates >WDC
NEW YORK - Normally, Wall Street is only happy if a company beats
earnings projections.
With prices declining, many market players will be relieved if most disk
drive companies just match third-quarter earnings estimates.
''I don't expect many upside earnings surprises,'' said analyst Paul
Weinstein of Kidder Peabody & Co.
Inventories of unsold personal computers are growing and pricing pressure
is intensifying in the disk drive business as more powerful products become
cheaper to produce. Both trends are expected to cap profits.
Analysts estimated the price declines in the September quarter ranged from
10% to 15% from the 6% to 8% levels in the June quarter.
''The prices should continue to come down,'' said analyst Crawford Del
Prete of International Data Corp.
And companies such as Quantum Corp. (QNTM) and Western Digital Corp. (WDC)
are expanding their manufacturing capacities. More capacity likely will mean
more supply and even more pressure on prices.
Weinstein said some concerns exist in the market about a ''supply-demand
imbalance'' in 1995. But for the rest of this year, Weinstein said he
expects strong performances.
Western Digital was the one company many analysts expect to turn in a
strong performance for quarter ending in September. The company lost 14
cents a share in its fiscal first quarter ended Sept. 25, 1993.
Needham analyst John McManus said the company is among the most profitable
drive suppliers, with a ''low-cost capacity coming in on stream in the
second half of calendar 1994.''
McManus recently raised his first quarter earnings estimate on Western
Digital to 58 cents from 54 cents. Kidder analyst Weinstein has an estimate
of 59 cents.
*************************************
MICK JAGGER MEETS WITH AMERICA ONLINE MEMBERS IN HIS FIRST LIVE INT
AN ONLINE SERVICE
WHAT: Mick Jagger will break from his "Voodoo Lounge" Tour, the
most successful tour in history, to participate in a LIVE
interview with America Online members. Members will have
the opportunity to chat "real-time" with Jagger in his first
LIVE online appearance.
WHEN: The event will take place on Monday, Oct. 3, 9-10 p.m., EDT
WHERE: America Online's Coliseum.
HOW: America Online members can enter Coliseum by using Keyword:
Center Stage. America Online Software can be obtained at
most major bookstores and software retailers, or by calling
1-800-827-6364. A transcript of the event will be available
on America Online or by request.
BACKGROUND: Center Stage is America Online's largest gathering
place, capable of accommodating thousands of guests.
Members can interact in "real time" events hosted by
Celebrities, Authors, and Experts on a variety of subjects.
Past events have been hosted by well known personalities
including: INXS, Dan Jansen, The Reverend Billy Graham,
Depeche Mode, Melissa Etheridge, Producer Joel Silver, HUD
Secretary Henry Cisneros, New York's Mayor Guiliani, Dr. Lee
Brown-United States Drug Czar, Conan O'Brien, Rosie
O'Donnell, Sheila E, David Bowie, The Eagles, Garth Brooks,
Oliver Stone, and many more.
America Online, Inc., based in Vienna, VA, is the nation's fastest-
growing provider of online services. The Company offers its more than 1
million subscribers a wide variety of services, including electronic mail,
conferencing, software, computing support, interactive magazines and
newspapers, and online classes, as well as easy and affordable access to
services of the Internet. Founded in 1985, the Company has established
strategic alliances with dozens of companies including Time Warner, ABC, NBC,
Knight-Ridder, Tribune, Hachette, IBM, and Apple.
****************************
Compaq Invests in "Books That Work" Software Home Improvement Sof
Bundled with New Presario Line
HOUSTON -Oct. 3, 1994--Compaq Computer Corporation
(NYSE:CPQ) today announced an investment in Books That Work, a publisher of
home-improvement/how-to software, marking Compaq's second equity investment in
a consumer software firm. Financial terms were not disclosed.
As part of a strategic partnership between the two companies, Compaq is
bundling Books That Work's "Home Survival Toolkit" software with the new
family of home-oriented Compaq Presario PCs that were announced and began
shipping in the US on September 14. This move underscores Compaq's commitment
to make the Compaq Presario the ultimate home productivity tool. Compaq is
the exclusive PC company bundling this software title. In addition, Compaq is
including with its new multi-media Compaq Presario models samples of two other
titles from Books That Work -- "Design & Build Your Deck" and "Get Wired!"
Both companies intend to feature the other company's products in select
advertisements, promotions and point-of-purchase displays at retail locations.
One current Compaq promotion incorporating Books That Work's home improvement
software features actor Richard Karn, co- starring as Al Borland on the
top-rated TV comedy Home Improvement, on a TV publicity tour to promote the
new Presario multimedia PCs on morning news and talk shows throughout the
United States. Interviews were conducted via satellite from Los Angeles on
September 19th and additional appearances are being scheduled for October 13th.
"Compaq's investment in Books That Work is part of our strategy to make PCs an
essential, easy-to-use tool in the home," said John Rose, Senior Vice
President of the Desktop PC Division, Compaq Computer Corp. "Books That Work
pioneered unique how-to software for the home while Compaq pioneered PC
hardware specifically tailored to the consumer; together we deliver true
utility to the home PC owner. This is one of a series of strategic
relationships Compaq is developing with leading software firms that offer
lifestyle benefits for the consumer."
In addition to the "Home Survival Toolkit," a full library of family-oriented
software comes bundled with the new Compaq Presario 500, 700 and 900 models,
including Microsoft "Encarta" CD (encyclopedia); Microsoft "Works for
Windows" CD (word processing, spreadsheet with charting, database with
reporting and communications); Kidsoft software for kids on CD -- "Crayola Art
Studio", "Dream Team Early Math" and "Dream Team Basic Spelling Tricks"; free
trial memberships in America Online, CompuServe, Prodigy and new Imagination
Network on-line services; "The Even More Incredible Machine" (puzzle game);
and "Quicken for Windows Special Edition" for managing finances. Compaq
Background
Compaq Computer Corporation is a world leader in the manufacture of servers,
and desktop, portable, and notebook personal computers. Founded in 1982, the
Company reported 1993 worldwide revenues of $7.2 billion. Compaq products are
sold and supported in more than 100 countries through a network of more than
31,000 Compaq marketing partners. Compaq also sells directly to customers
through Compaq DirectPlus at 1-800-888- 5858. For information on Compaq
products, call 800-345-1518. Users needing technical support for their Compaq
products can call 1-800-OKCOMPAQ.
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SLAYER TO GUEST ON CYBER-TALK(TM) IN SUPPORT OF 'DIVINE INTERVENTIO
BURBANK, Calif., Oct. 3 -- American Recordings thrash- punk
rockers Slayer will be the featured guests on the Monday, Oct. 10 edition of
Warner Bros. Records' weekly interactive talk show, Cyber- Talk. Slayer will
be available to chat with fans about their new album, "Divine Intervention,"
produced by the group in association with Rick Rubin. "Divine Intervention"
was released Sept. 27.
Cyber-Talk takes place on America Online Monday evenings at 9:30 p.m. EDT
(6:30 p.m. PDT). The first program of its kind, each segment of Cyber-Talk
features a different Warner Bros. Records/ affiliate label artist who will
answer questions from online users in the "digital auditorium" for
approximately one hour. Subscribers are able to download Slayer press kit
information prior to and after the show.
Access the Cyber-Talk auditorium through the Warner/Reprise online forum
(keyword: Warner). Cyber-Talk is produced in-house by Warner Bros. Records
staff.
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PC World Magazine August - 1994 - Real Problems, Real Solutions Co
on Disk
Starting a new business- or expanding an old one- requires a
lot of thought and research. Your options: Role up your
sleeves and do some of the research yourself, hire a
marketing consultant for a mere $150 an hour, or experiment
with an emerging breed of software designed to help you make
informed business decisions. This month Lew Hoff, president
of Bartizan Corporation, a multimillion-dollar manufacturing
firm with 85 employees based in Yonkers, New York, describes
how "MBA-ware" helps steer his evolving business. - Ed.
A Born Entrepreneur
I'm a born entrepreneur. I've run a successful manufacturing
company for 23 years, and during the past two decades I've
experimented with dozens of new markets for my business. An
entrepreneurial spirit like mine can be fun, but I have to
manage it carefully. If I don't thoroughly understand the
market I'm exploring- and don't fully investigate whether my
company is really equipped to develop, manufacture, and
market a new product- I can wind up in the hole.
In late 1992, I became infatuated with the idea of
manufacturing a completely new and different kind of
product: a child's car seat that converts to a stroller,
with a collapsible handle and wheels that tuck into the seat
base. I called the idea "BabyExpress," and I knew it would
be a must-have for parents like me who hate to grapple with
two pieces of equipment.
My company certainly didn't have the wherewithal to
manufacture this product in quantity. In the best-case
scenario, we could fulfill only a small percentage of what I
imagined would be an overwhelming demand. (Accordingly,
BabyExpress would have to be a somewhat pricey product,
which would also give it a certain cachet.)
Before testing my idea on our board of directors, I did some
market research, using a dial-up information service called
Teltech Resource Network (800/833-8330), which searches all
the major online services for business literature on
products. I checked the Teltech database to find out if
there were competitive products. There weren't. Then I
talked to some prospective customers; they thought that it
was a capital idea. Finally, I broached the subject with the
board members, who agreed with the customers.
This is a nebulous way to check out the validity of a new
idea, however. When I use the Teltech database, I ask it
questions, but it doesn't ask me any. In reality, customers
ask questions, but they really aren't concerned about your
profit margins. Board members ask tough questions about
areas like manufacturing or engineering, but they might not
know the first thing about marketing. And most of my
employees tend to tell me what I want to hear.
Tough Questions
While I was considering this new business, I read about a
$495 software package called Business Insight from Business
Resource Software (800/423-1228). It's a database of 30
management experts' accumulated knowledge. It asks hundreds
of questions about finances, products, distribution, and so
forth.
In most cases, your answers are rated on a scale of 1 to 10-
where 10 is positive. Once you've answered all the
questions, the program generates a report based on your
scores. It then rates your new venture's chance for success
and identifies the strengths and weaknesses of your
business, suggests ways to modify your plan.
I decided to check out the software. I particularly wanted
to find out whether or not we had the right people for the
project and if our marketing strategy made sense.
I spent 30 or so hours answering the hundreds of elaborate,
probing questions- things I never would have stopped to
think about on my own. For example, it asked me to rate, on
a scale of 1 to 10, hundreds of statements such as "Buyer
groups have distinguishable, quantifiable characteristics,"
"Moderate user sophistication is required," or "Rate the
bias of the buyer toward solutions other than yours."
Going through the arduous process of answering the questions
honestly was well worth the effort. It forced me to look, in
detail, at all the interrelated areas of my business, not
just those I knew intuitively.
After I finished the analysis, I ran the final report. The
report validated the market opportunity but also told me
that we were inadequately staffed to deal with the
production issues and that the project as a whole was risky.
For $495, I got the same kind of information I would have
received from a marketing consultant, without being charged
about $1100 a day for four day's work. And a consultant
would have tied up a tremendous amount of my time and my
staff's time.
20/20 Hindsight
Despite the software's somewhat negative evaluation, I
decided to go ahead with my BabyExpress project. As it
turned out, a design problem raised our expenditures beyond
the realm of profitability. Demand for the product was high,
but we ran into production difficulties, just as predicted.
In hindsight, I know that if I'd listened to Business
Insight, we might have saved the $1 million or so we put
into BabyExpress.
Though BabyExpress has not yet proved wildly successful, the
software has- at least in my firm. Now, whenever new
business possibilities come up, we run the proposal through
the program. In one case, it saved us at least $150,000, and
probably closer to a quarter million, by warning us away
from what looked like a lucrative opportunity. We followed
its advice and have since found that the move would have
been only marginally profitable.
My staff uses the software to explore business potential in
new markets and then presents detailed arguments and
analyses to me. Even our accounting firm uses the software
when it provides financial consulting. The software has also
proved to be useful as a communications tool: When a group
of us answers the questions by consensus, we are able to
reach a comparatively fair and objective analysis without
wasting a lot of time arguing.
Does all this mean that MBA-ware can actually take the place
of a savvy consultant? Probably not. It does mean, however,
that such software can be helpful. Because when it comes to
business planning, there's no such thing as knowing too
much.
Edited by Bronwyn Fryer
Bronwyn Fryer is a contributing editor for PC World. If you
use PCs to manage people and other resources, we want to
hear from you.
PC-PC World Magazine August - 1994 - News Monitor NEW WORLD ORDER: C
surpassed IBM and Apple in personal computer sales in the first quarter of
1994, according to the research firm Dataquest. "Compaq took advantage of
Apple's PowerPC transition and IBM's traditionally slow first quarter...but we
expect it to be a close three-way race by year-end," says Dataquest analyst
Philippe de Marcillac. Compaq's shipment of 487,948 units was a 55 percent
gain over the same period in 1993. The PC market grew 17 percent, but overall
the industry showed consolidation, with declines in shipments by companies
that were not among the top ten. At the end of the first quarter, the top ten,
in order of units shipped, were Compaq, Apple, IBM, Packard Bell, Gateway 2000,
Dell, AST Research, ZDS, Hewlett-Packard, and Toshiba.
CHEAPER, EASIER CD ROM: A new type of inexpensive, easy-to-
install CD ROM drive has hit the market. The new drive
connects to a PC via an IDE interface instead of the SCSI or
proprietary interfaces used on current products. To install,
simply plug the CD ROM drive into the IDE cable that
connects most PCs' hard drives. Unlike existing drives,
these units don't require a troublesome add-in card.
The first IDE CD ROM drives will be internal, double-speed
models aimed at the low end of the market. List prices
should range from $189 to $299, which compare favorably with
list prices of $188 for the least expensive drives with
proprietary interfaces and $400 for typical SCSI models
(including adapter cards).
Wearnes Technology is shipping the double-speed CDD-120
drive at a list price of $189. In late June, ALR plans to
ship its first CD ROM drive, the double-speed ALR Express
CDE-1200, for $299 list. In August, Aztech Labs plans to
ship the double-speed CDA 268-031; no price was available at
press time.
"BIGGER" CD ROM: Today's CD ROMs hold up to 660MB of
information, but thanks to a new data storage technology,
vendors will soon be packing one-and-a-half to ten times
that amount of data onto one disk. The new technology,
called capaCD, increases disk capacity by creating an
additional "virtual" layer of storage in the CD ROM and
implementing a new data compression scheme called
Multipress. Disks that use the capaCD storage technology
will work in today's CD ROM drives, and you won't have to
buy any special software or hardware to use them, says Ed
Brakus, CEO of EWB and Associates, the firm that developed
capaCD. According to Brakus, there is no performance
compromise with capaCD.
IBM TO MAKE PENTIUM-CLASS CPU: NexGen's Nx586 processor, a
RISC chip that the company claims matches Intel's Pentium in
performance and compatibility, will be manufactured by IBM.
NexGen plans to have 100,000 chips manufactured within the
first year of production. Without a manufacturing partner,
it's unlikely that NexGen, based in Milpitas, California,
could make enough chips to compete effectively with Intel's
Pentium line.
Tangent Computer is expected to be among the first to offer
a NexGen system. According to Tangent's director of sales
and marketing, Mike Zabaneh, the performance of the 60-MHz
Nx586 rivals that of Intel's 60-MHz Pentium. (NexGen will
also offer a 66-MHz Nx586.) The Nx586 doesn't come with a
math coprocessor- most business applications don't require
one- but NexGen will sell a math chip, the Nx587, as an
option.
APPLE GETS NO BITES: Though the Macintosh operating system
has won acclaim for its ease of use and appeal to computer
users, Apple Computer is finding the technology a hard sell
to PC vendors. Apple recently announced plans to license the
Mac OS to all takers- a break from tradition, designed to
broaden Apple's market share. But so far, not even a nibble.
According to Software Industry Bulletin editor Jeff
Silverstein, the top-tier PC vendors are "extremely wary" of
going Mac. "They're all so heavily dependent on Windows, and
they don't want to ruffle Microsoft's feathers," he says.
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AMD takes price/performance lead with 16 megabit flash
SUNNYVALE, CALIF. -Oct. 3, 1994--Advanced Micro
Devices today introduced the industry's lowest-cost, highest-density Flash
memory chip: the 16-megabit Am29F016.
AMD's 16-megabit Flash device is manufactured using 0.5-micron technology at a
new $750 million wafer fabrication facility in Japan jointly owned by AMD and
Fujitsu Ltd. Reducing the process technology to 0.5 micron results in a
smaller chip size which lowers costs, while simultaneously increasing the
memory capacity of the part.
Worldwide sales of Flash memory, one of the fastest-growing portions of the
semiconductor business, is expected to be roughly $1 billion in 1994.
Flash is a unique semiconductor memory in that it can be reprogrammed while in
a system and retain that information when the power is turned off. It has
been a boon to manufacturers needing to update control code in such products
as cellular phones and personal computers.
Flash is also expected to become a disk drive alternative in the emerging
"personal information device" field since it is light, rugged, and requires
little power.
"AMD's Flash technology is second to none," said W.J. Sanders III, AMD's
chairman and chief executive officer. "Combine this expertise with a
formidable ability to manufacture state-of-the-art products in high volumes,
and it is clear that AMD is poised for market leadership."
AMD Flash Memory Becoming a Global Standard
The AMD Am29F016 is one of a family of devices that operate from a single
power supply of 5 Volts. It conforms with the JEDEC (Joint Electron Devices
Engineering Council) standard for single-power supply Flash memories, and has
recently become a de facto industry standard as well.
Industry standardization of the AMD Flash memory architecture has occurred as
a result of several strategic alliances formed with major global suppliers of
semiconductor memories. AMD and Fujitsu Ltd. have formed Fujitsu-AMD
Semiconductor Ltd. (FASL), a joint venture for product development and
manufacturing of Flash memories, including the new 16-megabit device.
SGS-Thomson and AMD agreed in June 1994 to jointly define Flash memory
specifications that will allow the two companies to independently develop
compatible Flash products. Motorola and AMD signed an OEM agreement in August
1994 that enables Motorola to add AMD Flash to its memory product portfolio.
The Market
AMD's Flash market share is currently 25 percent to 30 percent based on
company estimates. Independent market analyst numbers vary, but 1994
worldwide sales of Flash memories are currently projected to be about $1
billion, with some estimates projecting growth as high as $3 billion in 1997.
The largest selling category of Flash memories, according to market
researchers In-Stat, will be 5 Volt-only devices -- the type of Flash marketed
by AMD and its strategic allies. Package, Price, Availability
The Am29F016 is now available in limited quantities with volume shipments
commencing in December 1994. The device ships in a 48-pin TSOP package and is
priced at $59.90 in quantities of 1,000. About AMD
Advanced Micro Devices, Inc. is a proven, high-volume supplier of Flash
memory technologies and cost-effective products that lead the market in
performance, ease of use and reliability.
Advanced Micro Devices, Inc., is the fifth-largest U.S. manufacturer of
integrated circuits. Focusing on the business computing and communications
markets, AMD produces microprocessors and related peripherals, memories,
programmable logic devices along with circuits for telecommunications and
networking applications.
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SEC Information Available On Electronic Bulletin Board
WASHINGTON Securities and Exchange Commission announcements and other
information are now available on a federal electronic bulletin board.
The SEC said starting today its daily release of SEC announcements, known
as the SEC News Digest, can be accessed on Fedworld, a Commerce Department
run bulletin board. The SEC will also put informational brochures, columns,
rulemaking announcements, speeches and testimony from commission members and
other information on the bulletin board.
The action is part of an overall consumer affairs initiative led by SEC
Chairman Arthur Levitt. As reported, the SEC is additionally putting out a
mutual fund brochure and is starting a toll-free number on Oct. 24 designed
to ease investor access to market information. Levitt also plans to speak to
consumer groups across the country during October.
The SEC bulletin board can be reached by dialing 703-321-8020 and setting
up a Fedworld account or by typing ''telnet fedworld.gov'' on the Internet.
SEC information is available in the ''subsystems'' section of Fedworld. The
service is free and access is limited to 180 minutes a day.
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