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- [***][5/22/84][***]
- THORNE/EMI WEDS PERFECT:
- The giant Thorne/EMI signed an agreement with Perfect Software
- Monday (5/14) in which the conglomerate will market and distribute
- all the Berkeley-based company's software products (PerfectWriter, Calc,
- Filer, etc.) in the U.S. and abroad. Perfect was paid half a million
- dollars as pre-payment of royalties. Perfect Software, which by the end
- of the month will have lost half its staff of 60 people in Berkeley, has
- undergone major management changes and financial crisis as Thorne hammered
- out this deal. Originally, Thorne had offered to purchase the company
- for $7.7 million in a three-year buy-out but backed off for undisclosed
- reasons. Virtually all of the Berkeley-based operation will close down
- by June 1. President Buck Lindsay says a new Thorne marketing office
- will be opened "probably in San Francisco." Perfect's Eugene, Oregon-based
- Product Development Center will continue to design new software products
- for Thorne/EMI. Insiders say had the Thorne distribution deal not
- happened, Perfect Software would have been in serious financial trouble.
- ----
- CONTACT: LOU DELMONICO
- THORNE/EMI COMPUTER SOFTWARE INC.
- COSTA MESA, CA.
- 714-751-3778
- ----
- PERFECT SOFTWARE
- BERKELEY, CA.
- 415-527-2626
- [***][5/22/84][***]
- LOOK OUT--IT'S IBM SOFTARE:
- Make no mistake about it. IBM has entered the software arena in a big way,
- announcing this week a series of eight new programs for the IBM PC, XT and
- PCjr. The word processing, filing, graphics, spreadsheet and report-
- generating programs will be available immediately at very competitive
- prices. Most of the programs will retail for $149. Within the next month
- three more programs will become available at even lower prices.
- The move by IBM into the software arena signals a new game of hardball
- among software companies. Analysts say it will trigger across-the-board
- price reductions which could be disasterous for smaller software
- firms. IBM predicts its software revenues will increase 35% this year
- over 1983's $110 million in sales.
- ----
- CONTACT: IBM
- NEW YORK, NEW YORK
- 212-407-6942
- ----
- [***][5/22/84][***]
- A PAGE OF HISTORY:
- Adam Osborne, founder of Paperback Software and a host of other publishing
- luminaries made some grim forecasts for the book business last week at a
- meeting of the Association of American Publishers. Osborne and others
- foresee the book business going the way of the Model-T unless publishing
- companies aggressively market computer software along with books. "Those
- of you who think you are just book publishers are not going to be here in
- a few years," Merl Miller of Dilithium Press told the gathering. Osborne
- says 80 percent of software will be sold through book stores by 1990 and
- warns that unless book stores and publishers jump on the bandwagon, their
- profits won't grow.
- ----
- CONTACT: MERL MILLER, CEO
- DILITHIUM PRESS
- BEAVERTON, OREGON
- 503-646-2713
- ----
- ADAM OSBORNE
- PAPERBACK SOFTWARE
- BERKELEY, CA.
- 415-644-2116
- ----
- [***][5/22/84][***]
- ASHTON-TATE'S NEW dBASE:
- A quarter of a million copies of dBase II, a filing program from Ashton-Tate
- have been sold. The company is hoping for even greater success with the new
- dBase III which will reach retail shelves June 15 and will sell for $695.
- In order not to sabotage sales of its current inventory of dBase II, the
- company will reduce the price of the older program by $200 to $495. The
- new product reportedly holds two billion records. (The older dBase holds
- 65K) and is easier to learn. Ashton-Tate recently announced a program
- called "Framework" which becomes available July 2.
- ----
- CONTACT: DAVID COLE, PRESIDENT
- ASHTON-TATE
- CULVER CITY, CA.
- 213-204-5570
- ----
- [***][5/22/84][***]
- QUIT OF THE WEEK:
- Raytheon is abandoning its line of computers claiming "it's just not
- profitable" to compete in the computer business. For 13 years, the
- company has manufactured terminals, word processors and related business
- computers which have sold to a variety of businesses including 165
- airline companies worldwide. The closure of Raytheon's Data Systems
- Division in Norwood, Massachusetts means 1,600 people will be laid-off
- from a staff of 3,625. The Data Systems division lost $24.3 million
- last year and had prospects of losing an equal amount in 1984.
- ----
- CONTACT: THOMAS PHILLIPS, CHAIRMAN
- RAYTHEON, INC.
- LEXINGTON, MASSACHUSETTS
- 617-862-6600
- ----
- [***][5/22/84][***]
- WORK SMART, AMERICA!
- That's IT&T's new slogan as it launches a $15 million dollar television
- and print media campaign to advertise the new "Xtra" computer. The "Xtra"
- is just reaching Computerland stores. It resembles the Televideo computer
- and operates on "ITT-DOS" (reportedly an "enhanced" version of MS-DOS).
- The suggested retail price is $3,070 for a 128K machine with detachable
- keyboard, a single drive and a 14-inch monochrome monitor. IT&T plans
- to associate the computer with the company's history of telecommunication
- expertise in its marketing campaigns.
- ----
- CONTACT: ITT INFORMATION SYSTEMS DIVISION
- NEW YORK, NEW YORK
- 212-797-7607
- ----
- [***][5/22/84][***]
- MEANWHILE IN COMPUTERLAND:
- Several staff members had better learn to speak Chinese. Computerland
- has struck a deal with the People's Republic to open an exhibition of
- computer products and sell directly to government, industry and schools
- in China. Eventually the company plans to open a chain of retail outlets
- in China where it will sell the same products as are sold in the current
- 653-store U.S.-based chain. ComputerLand is the first American computer
- retail outfit to make such a deal with China. A company spokesman says
- $5 to $10 million in sales to the People's Republic have already been
- lined up.
- ----
- CONTACT: KEN MCCONNELL, PRESIDENT INT'L DIVISION
- COMPUTERLAND
- OAKLAND, CALIFORNIA
- 415-839-5230
- ----
- [***][5/22/84][***]
- EXODUS FROM COMMODORE:
- In the past two weeks, eight top-ranking executives of Commodore have
- left for greener pastures. No reasons were given for the departures
- (or firings) but among the alumni is Sam Tramiel, now former General Manager
- of Japan operations. (His father Jack Tramiel left in January.) The
- resignations follow four months of what appears to be a major internal
- reorganization. Commodore is not in serious financial trouble; it continues
- to post million-dollar profits. A Commodore spokesman would only say
- the resignations are part of a "streamlining" of the company. Speculation
- has it that some of the departing personnel may join Jack Tramiel in a
- new software venture.
- ----
- CONTACT: COMMODORE INTERNATIONAL
- WEST CHESTER, PA.
- 215-431-9100
- ----
- [***][5/22/84][***]
- ELECTRONIC MAIL WARS:
- Western Union is kicking off its electronic mail delivery system this
- week with a $15 million dollar advertising campaign. Western Union
- is the first of several companies (MCI, ITT, among others) to launch
- a major consumer-oriented ad campaign to promote its electronic mail
- system. Called "EasyLink", the system requires a sign-up fee to
- access via computer and modem. Deliveries of electronic information
- will be made to telex or computer systems or printed out in the form
- of Cablegrams or Mailgrams. Western Union hopes to have 100,000
- subscribers over the next six months.
- ----
- [***][5/22/84][***]
- IN BRIEF--
- -CHEMICAL BANK will give its online "Pronto" customers the ability to
- buy and sell stock and get portfolio updates. 6,000 people are already
- signed up for "Pronto" which costs $12 a month. No fee has been revealed
- for the stock purchasing service.
-
- -VDTs do not cause birth defects or miscarraiges according to several
- medical experts who testified before Congress last week. The group of
- OBY-GYNs said there is no medical evidence to support the feared link between
- work at a video display terminal and pregnancy problems.
-
- -HEWLETT PACKARD enjoyed a 30% rise in earnings during the last quarter.
- The company made $141 million in sales in its fiscal second quarter.
-
- -GENERAL MOTORS is talking with Electronic Data Systems of Dallas in
- what appears to be a move to wed cars and advanced electronics.
-
- -EAGLE COMPUTER announced losses from the third quarter amounted to $9.7
- million, more than had been anticipated. The losses were directly tied to
- IBM's lawsuit and its affect on sales.
-
-