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Newsbytes - Internationa…ews 1983 May to 1994 June
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Newsbytes - International Computing Industry News 1994 Edition - May 1983 - June 1994 - Wayzata Technologies (5045) (1994).iso
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1984
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1991-10-04
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[***][10/2/84][***]
GAVILAN BUCKLES:
The struggling Gavilan Computer Corporation of Campbell, Ca. is officially
out of business and will file for protection from bankruptcy this week.
Only ten of sixty people are left to handle the legal and administrative
problems involved in closing up shop. Two year old Gavilan owes more than
$10 million to some 400 firms. Gavilan's biggest problem stemmed from its
delay in marketing two portable computers; the delay allowed other portable
computer makers to get a head-start in marketing their own products. Only
about 1,500 of the portables were actually sold. Management intends to sell
off remaining inventory to a third party computer repair company which could
service the Gavilans now out there. Gavilan's chairman Manny Fernandez,
meanwhile, has already landed a job with Dataquest of San Jose, an industry
analysis firm.
[***][10/2/84][***]
BATTLE OF THE GIANTS:
In a move expected to strengthen IBM's fight against AT&T, IBM is giving a
tender offer to shareholders of Rolm Corporation in order to completely take
over the telephone switching equipment company. IBM has offered $70 a share
for the 77% of outstanding shares it already doesn't own. The Justice
Department has to approve the merger, expected in two months or so. The
takeover will cost IBM a whopping $1.27 billion dollars and even more
interesting is that the shareholders will not be paid cash, but gain IBM
convertible bonds, otherwise known as IBM securities, for their Rolm shares.
Rolm has been struggling to compete against AT&T for years to penetrate
the telephone switching systems market. Its alliance with IBM could give
it, and IBM an edge. If approved, the IBM-Rolm merger would be the most
expensive merger in IBM's 70 year history.
[***][10/2/84][***]
DOUBLE BLOW:
IBM also made headlines last week by unveiling 31 software programs for the
PC computers. The programs are designed to compete with Lotus and Ashton-
Tate, among others, and offer spreadsheet, graphics and word processing
functions in an integrated format. The beauty of the programs is that they
work not only with PCs, but a variety of IBM mainframes and perform the
most common office functions. Each of the IBM series software costs $695
and is expected to put serious pressure on the thousands of other software
companies competing for a share of the $2.2 billion software market. Perhaps
related to the two big stories--software and Rolm--is the fact that IBM will
get a new chairman on February 1, 1985. John Akers, President of IBM will
succeed John Opel, who retires at age 60.
CONTACT: D.E. UDELL
IBM INFORMATION SYSTEMS GROUP
RYE BROOK, NEW YORK
914-934-4488
[***][10/2/84][***]
K-FLAP OVER PCJR:
An article in the September 25th issue of the "Wall Street Journal" had some
IBM retailers nearly foaming at the mouth. The article reported that IBM
was talking with K-Mart to distribute the PCjr in the 2,160 K-Mart stores
nationwide. IBM's authorized dealers flooded IBM with loud complaints,
fearing discount outlet sales of the machine would devastate them. However,
on September 28, the "Journal" quoted an IBM executive as saying the report
was "erroneous" and that IBM "has no plans to expand its distribution
channels". All dealers and sales reps got that statement and are,
naturally, relieved.
[***][10/2/84][***]
BIG MAC UPDATE:
The 512K MacIntosh is not exactly getting red carpet treatment from large
corporations yet, despite its increased memory and its promise to run
business programs. Its main drawback to penetration of the business market
seems to be three-fold. Namely, it can't be linked, reliably, to other
Macs in a large local area network yet (Symbiotics of the U.K. has a
networking system that "deteriorates" after 12 machines are linked), it
doesn't have a hard disk from Apple and it doesn't link to IBM mainframes.
However, several analysts expect some major announcements in January
regarding these and other features. An Apple laser-printer and business
software, at least, should be announced then. In other Apple news, look
for the post-election issue of "Newsweek" to be virtually dominated by
Apple ads for the MacIntosh. Apple is spending some $2 to $3 million to
grab every inch of available advertising space in that "Newsweek" issue.
[***][10/2/84][***]
LOTUS GOES PRINT:
As suggested by a good NEWSBYTES source several months ago, Lotus Development
Corporation has entered the business of print publishing. Dan McMillan,
whose accolades include being the former VP of McGraw-Hill Publishing, is
the VP of Publishing at Lotus. As of April, a new publication he's designing
called "Lotus" will be a monthly offering. The main thrust of the monthly
will, of course, be Lotus software products but McMillan says he's making
a special effort to remain objective in software reviews from other companies,
as well as providing down-to-earth advice to micro users. He did say he's
looking for an editor for the publication and the staff of the magazine will
be some 30 people.
CONTACT: LOTUS DEVELOPMENT CORPORATION
CAMBRIDGE, MA.
617-492-7171
[***][10/2/84][***]
NEW KAYPRO 2:
There were 2 announcements from Kaypro this week. First, the company has a
new portable computer computer called the New Kaypro 2. Priced at $995, it's
designed to compete with the Apple //c market, offering a disk drive
with three times the capacity of the //c (390K expandable to 780K), a 9"
CRT, a full keyboard, two serial ports, and a Centronics parallel printer
port. Kaypro bluntly admits it's designed the machine for the upcoming
"Christmas Computer Wars" but the machine won't be out on the market for
at least a month. It's just now being produced and the only working model
is a prototype. The second company announcement is the existence of
"KayNet", a system which can link up to 64 Kaypro series computers.
Licensed from Orange Compuco of Costa Mesa, Ca., KayNet's exact hardware
components were not discussed in the press release, nor was the
availability date.
[***][10/2/84][***]
AND ON THAT SUBJECT:
Datapoint Corporation, long-known for its clandestine approach to linking
its own office communication products in LANs, announced it now has hardware
available to link IBM PC computers. Known for ARCnet, the first communication
system to link computers in 1977, Datapoint's new PC Intelligent Network is
capable of tying 255 minicomputers, remote computers and peripherals to one
network. Fiber optics, coaxial cables, infrared light and adapter cards for
each PC are included in the network, which costs $770 per machine. Datapoint
has been slow on the uptake to capitalize on IBM's lack of its own
PC network, and analysts suggest they're concerned that this network is a bit
tardy to reverse the company's sagging fortunes.
CONTACT: DATAPOINT CORPORATION
SAN ANTONIO, TEXAS
[***][10/2/84][***]
CONTROL DATA PULLS THE PLUG:
As of 1985, Control Data will stop production of the 33800 series of disk
drives. The move comes in light of falling sales and, as reported in last
week's NEWSBYTES, disk coating problems that led to malfunctions in the
drives. Control Data has been selling the drives to IBM for use in its
various computers. At this point, falling revenue from drive sales will
cause C.D. to write off an almost $150 million loss.
[***][10/2/84][***]
FLY THE TANDEM SKIES:
Tandem Corporation has launched an ambitious project to develop an airline
reservation system. In partnership with Scandinavian Airlines System Group and
a Connecticut software company, Tandem promises to have its computerized
reservation system, called SPAR, up and flying by December of '85. In
addition, Tandem plans to market some 22 software packages aimed at the airline
industry. Tandem is traditionally known for "fail safe" systems which should
give some "flyophics" a sense of security..
[***][10/2/84][***]
IN BRIEF--
**** A very "inside" source tells me that COMMODORE'S new AMIGA computer will
be on the market in January, and because of this, the pressure is on Apple
The source says Apple is feeling rather pinched between IBM, on top, and
Commodore on the bottom. It looks like Commodore's Amiga will sell for under
$1,000. Where does that leave Atari's Jack Tramiel? Stay tuned. ****
The S.E.C. has EDGAR up and running. EDGAR (Electronic Data Gathering,
Analysis and Retrieval) is still in a testing phase, but promises to provide
online information regarding the finances of at least 150 corporations.
Users can only access it now at Security and Exchange Commission public
hearing rooms, but it should be available worldwide by March, 1986.
The SEMICONDUCTOR INDUSTRY ASSOCIATION forecasts that sales of chips will
jump 48 percent this year, amounting to $26.3 billion in sales. "We are
on our way to the most explosive year in the history of our industry," said
Irwin Federman, president of Monolithic Memories, a chip-maker.
COLUMBIA PICTURES is closing MYLSTAR ELECTRONICS of Northlake, Illinois.
The subsidiary makes coin-op video games. No reason was given for the layoff.
PIZZA TIME THEATER, one of the 16 companies started by Atari founder Nolan
Bushnell, is selling 60 Chuck E. Cheese restaurants to rival ShowBiz Pizza
Places. The deal was sealed Sept. 27. Remaining stores will either be
sold to private owners or dissolved.
AMDAHL CORPORATION plans to sell two supercomputers made by FUJITSU. This
is an important move in light of Amdahl's falling revenues. The mainframes
use IBM protocol but offer 38 to 76 times the processing power of IBM.
MORROW INCORPORATED has cut the price of its MD3-P computer from $1,899 to
$1,099 to take advantage of the Christmas sales season. The price slash
extends to the Morrow letter-quality printer, which has gone from $2,349 to
$1,399.
NOLAN BUSHNELL's group Entrepreneur's Alliance held a hoedown/bash at the
estate of Mal Padgett, publisher of the "Corporate Times" in Atherton, Ca.
on Sept. 29. The bash featured an auction of such goodies as signed letters
from former Governor Reagan, a 1959 MG Midget roadster, a dinner with Nolan
himself, a week in a Maui condo, etc. etc. The non-profit group hopes to
raise $30-$40-thousand for a new training center.
[***][10/2/84][***]
MORE ON NOLAN:
Atari founder Nolan Bushnell came out with 8 new games last week. No, they're
not Pac-Man or Space Invaders, in fact they have nothing to do with video or
computers. No, these are just plain old card games called "Trivia Quiz" cards.
They're being produced by one of Bushnell's companies, Axlon, and of course,
are designed to capitalize on the current trivia game fad. A company spokesman
says these are just the first of many home entertainment products we can expect
from the new company, and are the first because they required the least amount
of R&D development money. The questions on the cards came from contributors
who were paid $1 for each question used. Out of 80,000 submissions, 30,000
were used for the cards. Later products will include electronic games and
home appliances, maybe even a computer or two, provided the cards make the
company a little pocket money.
[***][10/2/84][***]
QUOTE OF THE WEEK:
Don Hoefler of "Microelectronics News" on Texas Instruments recent chip-testing
scandal: "...long the most close-mouthed, tight-lipped outfit in the industry
obviously has its back against the wall after IBM blew the whistle on its
test procedures...(now) T.I.'s normally taciturn flackery..(has) cut loose
with some of the most mealy-mouthed, weasel-worded doubletalk statements
in the company's history!"